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The energy sector had its worst performance this year compared to sectors included in the S & P500 index, as it traded at its lowest level against the index since 1931, according to Ari Wald, head of Oppenheimer’s technical analysis.
He added to “CNBC”: “The industry has been really messed up not only over the past year, but over the past five years, apart from a few small things, everything is going against it, and it’s too soon. to expect it to enhance. “
Over the past 20 years, the S&P 500 Index has increased by over 130%, while the performance of the Energy XLE Index Fund has declined by 3%.
The report, which was reviewed by Al Arabiya Net, indicated that the energy sector has generally performed the worst among the eleven sectors that make up the S & P500 index during the period from November to January since 1990.
“You have to be very smart,” said Chad Morganlander, portfolio manager at Washington Crossing Advisors. “We believe that we will be more cautious in investing in energy over the next three months.”
However, Morganlander seemed more optimistic about the long term, saying, “If you look at the next 18 to 24 months, energy, we think, should be part of a diverse portfolio, especially if the Corona outbreak ends in. the next two years, it will be A better dynamics of market growth, as well as a better reorganization between supply and demand in the oil market, will lead to an increase in oil prices and in the whole sector. “
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