A Bounce for Energy

by Eddy Elfenbein, Crossing Wall Street

Here’s a look at one of the more remarkable stock charts of the last 20 years. This shows the relative strength of the energy sector.

Energy stocks outpaced the market by a good margin until 2008. The peak came on Jul 1, 2008. Since then, energy stocks have badly lagged the market.

But in the last month, energy stocks have gapped up strongly. It’s hard to say if this rally is for real when so many other bounces were false rallies.

Even after the recent bump, some big energy stocks, like XOM and CVX, yield close to 4%.

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