Is it Time to Take Profits in Energy Stocks?
(6/7/22) Energy Prices have been on the rise for myriad reasons, including the Russia/Ukraine War, and an under-supply of domestic oil thanks to regulatory changes. The energy indexes have followed suit, up nearly 50% this year, while the S&P is down 14%--an amazing out-performance that historically does not last for long. So, it is time to take profits in energy stocks? Energy prices, as a proxy for energy stocks, are worth noting: Oil at $118/bbl is three standard-deviations above the 50-MMA of oil prices. That's a more than 4-year stretch of prices above long-term moving averages (remember, moving averages are averages for a reason: Prices had to trade above AND below that average over a period of time.) Just three years ago, energy prices were trading at a NEGATIVE, three standard-deviations BELOW that same 50-month moving average. In 2020 no one wanted to own energy stocks because they were in the tank; now, everyone can't get enough of 'em. The last time we saw this phenomenon was in 2008. With prices currently over-extended, and the economy going into recession, there are implications for a reduction in demand, and a consequential drop in energy prices from reduced demand and increased supply. Prices will revert--maybe not this month or the next--but now would be a good time to think about taking some profits in energy stocks off the table.
Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO
Produced by Brent Clanton
--------
Get more info & commentary:
https://realinvestmentadvice.com/insights/real-investment-daily/
--------
Watch the video version of this report by subscribing to our YouTube channel:
https://www.youtube.com/watch?v=OSNn-wTdkBc&list=PLVT8LcWPeAujOhIFDH3jRhuLDpscQaq16&index=1
-------
Visit our Site: www.realinvestmentadvice.com
Contact Us: 1-855-RIA-PLAN
--------
Subscribe to RIA Pro:
https://riapro.net/home
--------
Connect with us on social:
https://twitter.com/RealInvAdvice
https://twitter.com/LanceRoberts
https://www.facebook.com/RealInvestmentAdvice/
https://www.linkedin.com/in/realinvestmentadvice/
-
4:14
Lance Roberts' Three Minutes on Markets & Money
2 years agoIs it Time to Take Profits in Energy Stocks?
6 -
22:29
Energy News Beat Podcast
3 years agoThe Daily Finance and Energy News Show 1-28-2021 Energy News Beat
74 -
12:53
TradingFraternityRumble
2 years agoTime To Buy Oil Stocks Again
26 -
24:13
Energy News Beat Podcast
3 years ago $0.01 earnedEnergy News Beat 1/19/2020 - Stock Market Daily Update
76 -
15:19
Energy News Beat Podcast
3 years ago $0.05 earnedEnergy News Beat 1/20/2020 Markets and Finance Update
294 -
31:17
Commodity Culture
2 years agoInvesting in ENERGY With John Polomny
16 -
15:32
Energy News Beat Podcast
1 year agoDaily Energy Standup Episode #54 - US Reserves UP, ESG Investing Proving Not Profitable, US..
4 -
3:04
LumleyTrading
1 year ago$TSLA Stock Analysis - Is It Time To BUY Or SELL Tesla???
6 -
0:58
theotrade
9 months agoSurprising insights on declining profit margins in the energy industry
-
8:35
MoneyShow
4 years agoWhy Small Energy Firms can be More Profitable | Andy Westmoreland
5