Oil Says It's Finally Time To BUY Energy!

December 11, 2017 BY James Paulsen

Energy stocks have persistently underperformed throughout this bull market. The relative total return performance of the S&P 500 Energy sector since the start of this bull market is the worst of all 11 sectors, trailing the overall S&P 500 index by almost 270%! Understandably, this chronic underperformer offering little positive price momentum is significantly underweighted in most portfolios. However, a simple valuation technique based on the relative price of crude oil suggests energy stocks may soon start outpacing the overall market. That is, Oil says it may finally be time to BUY Energy stocks!

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