Liz Young, Head of investment strategy at SoFi
Energy Select Sector SPDR Fund
XLE-N
BUY
Jul 01, 2024
Her energy outlook: bullish. If there's a rotation based on valuation, then energy is now attractive. If the Fed cuts rates in the second half of 2024, the 2-year-yield will drop which will benefit dividend stocks like energy. Also, we're in summer driving season and an oil price shock can always happen.
He owns a lot of energy stocks. This sector is performing a lot better year to date than the street gives it credit. Many energy companies like Exxon and Marathon are doing well. The second half of 2024 looks positive.
He sold his small position. Crude is down 7.5% the past month. For energy, you need to be in the fully integrated names. But it's too early to play energy--see how much China will stimulate demand.
Finally, the tide has turned in China (news of government stimulus this past week), so it's time to be exposed to China, which ahs been a terrible place to invest. It's a trade of at least 6 months.
Oil prices have shown a little life recently. This is a contrarian trade, but likes it full year. It's part of the cyclical trade and will rise in a relief rally when rotation happens again.
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Her energy outlook: bullish. If there's a rotation based on valuation, then energy is now attractive. If the Fed cuts rates in the second half of 2024, the 2-year-yield will drop which will benefit dividend stocks like energy. Also, we're in summer driving season and an oil price shock can always happen.