Energy Select Sector SPDR Fund (XLE-N)

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.

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.

There's been a lot of M&A in energy, so she expects nice returns for the rest of the year. YOY energy earnings for companies are starting to climb.

Oil inventories, but also oil demand in the cycle are both peaking. He's bullish oil for the rest of the year.

Energy is up 3% this week. People are driving and gas demand is up big, but expect volatility.

Will benefit from investors taking profits from tech and buying energy.

Interest rate cuts are expected sometime this year, so you want to be into dividend payers before those cuts happen.

Long-term supply and demand will support energy stocks, but now the commodity is range-bound. Stronger demand from China and geopolitical concerns will raise energy prices and stocks. 

The oil price is up 16% in the past 3 months and energy stocks up 11%, so stocks lag. However, interest in oil futures has not been this high since Oct. 2021, so eeryone is looking for oil opportunities. Also, hedge funds are holding their highest positions in energy since Feb. 2022, when the Russian war began. This means the spot price of oil is vulnerable to a correction, but the supply/demand imbalance makes energy stocks a buy.

A great equal-weighted ETF in oil holding 25 names, more mid-cap than large-cap. She's bullish oil.

Good way to get exposure to global energy.
Energy fully valued, might be a good time to sell on strength.
Quality ETF. 

She's very bullish energy; energy prices will remain high. $86 is the new $60. The Saudis hold all the cards, so they have an incentive to keep the oil market tight. Inventories are very low and the free cash flow yield in this sector is ove 10%. Spending is disciplined and companies are givign back to shareholders. This is no longer a feast or famine sector.

She likes energy for the second half, that it's lagged in the first half of 2023. There's a floor on the oil price, which will support these stocks. Continuing consumer demand for travel will help support energy.

Oil has been weak lately due to recession fears and the uneven open in China, but we're entering a traditionally strong season for crude. XLE is up 2.5% this month, though -9% YTD. He still likes fundamental earnings and free cash flows of the oil companies. He still likes energy and sees upside in the near-term.

He's hurting energy which is -9% YTD. There's clearly softness in coil demand; China's reopening is uneven. But crude oil is mispriced.