BlackRock says energy is bright spot as it sours on stocks - BNN Bloomberg

BlackRock Inc.’s senior investment strategist Kurt Reiman says shares of oil and gas companies will continue to be a rare bright spot in an otherwise tough market, even as the asset manager downgrades its position on equities to underweight as central bankers signal further interest rate hikes.

“The confidence, in our view, around structurally higher commodity prices has risen over the course of the year,” Reiman said on Tuesday in an interview at Bloomberg’s Toronto office. “We now have a supply shock within a supply shock because of the war in Europe. Then when you think about the underinvestment in the key commodities that Russia and Ukraine export, it hasn’t been sufficient to meet global demand. And it takes a few years of investment to bring this capacity online.

An index of oil and gas companies in the S&P 500 index has surged 40 per cent this year, a stark contrast to the more than 18 per cent drop in the overall S&P 500. Occidental Petroleum Corp. soared 135 per cent this year, with Devon Energy Corp. and Exxon Mobil Corp. among the top five gainers. Soon after making the change, stock markets rallied on better-than-expected earnings. But the surge was a blip as markets made a u-turn and spiraled last week after US Federal Reserve chair Jerome Powell warned that investors should brace for an extended period of higher rates.

Really the face of ESG likes energy, what a joke. Maybe they are waking up to reality.

Yes for sure ...with shorting stock and make money on the back of canadian retail investor

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Jeremy Grantham warns 'super bubble' in stocks has yet to burst - BNN BloombergFamed investor Jeremy Grantham said the “super bubble” he previously warned about has yet to pop, even after this year’s turbulence in the US stock market. PermaBear. If you say it for long enough, one day it will be true. Meanwhile, what is the opportunity cost to those who listen to him? Bet he has shorted the market heavily and is trying to talk himself into a windfall. No wonder people hate Wall Street.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Market selloff's sequel is moment of truth for summer stock enthusiasts - BNN BloombergIt’s easy to be an optimist when sailing is smooth. The real test comes when things get rough.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

U.S. stocks end at lowest level in a month; oil sinks - BNN BloombergU.S. stocks fell for the third consecutive day as fresh data pointed to resilience in household and labor demand, affirming the Federal Reserve’s resolve to continue to be aggressive in its fight against inflation. Commodities from oil to copper sank as the dollar rose.
Source: BNNBloomberg - 🏆 83. / 50 Read more »