The energy sector witnessed its worst performance this year compared to the sectors included in the S & P500 index, as it trades at its lowest level compared to the index since 1931, according to Oppenheimer’s head of technical analysis Ari Wald.
He added to “CNBC”: “The sector has been really troubled not only in the past year, but in the past five years, except for a few things, everything goes against it, and it is too early to expect it to rise again.”
Over the past 20 years, the S&P 500 has risen by more than 130% while the performance of the XLE Energy Index Fund has decreased by 3%.
The report, which was reviewed by Al Arabiya Net, indicated that the energy sector is usually the worst performing 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 think we will be more cautious in investing in energy over the next three months.”
Nevertheless, Morganlander seemed more optimistic in the long term, saying, “If you look over the next 18 to 24 months, the energy, we believe, should be part of a diversified portfolio, especially if the Corona epidemic ends within the next two years it will be Better market growth dynamics, as well as a better reorganization between supply and demand in the oil market, this will lead to higher oil prices and the entire sector. “
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