FlowBank

833 days ago • Posted by Ajmir Omid

#Energy sector makes 52-week high $XLE #rotation #value #inflation

Rising inflation pressures and earlier liftoff on interest rates are pushing market  out of growth to more economic-sensitive value stocks. One sector that is well-positioned to benefit from this rotation is the S&P 500 energy sector which made two consecutive +3% daily gains earlier this week. This morning the energy sector is up 1.8% pre-market, while S&P 500 futures is flat (-0.02%). An alternative to XLE  (capital-weighted) is XOP (equal-weighted). XOP tends to track the broader sector.  Historically value stocks tend to outperform their peer growth when perspectives of economic growth are positive and breakeven inflation is above 2%.

#Stocks
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