Even during a year in which the S&P 500 index has declined 19%, with 70% of its stocks in the red, there are plenty of winners.
Maybe you aren’t... Even during a year in which the S&P 500 index has declined 19%, with 70% of its stocks in the red, there are plenty of winners. Maybe you aren’t surprised to see that the energy sector is the only one that has increased this year. But it might surprise you to see that despite the sector’s weighted price increase of nearly 58%, its forward price-to-earnings ratio has declined and remains very low relative to all other sectors.
The reason investors have remained confident in energy stocks is that oil producers have remained cautious when it comes to capital spending. They don’t want to increase supply enough to cause prices to crash, as they did in the run-up to the summer of 2014, after which prices fell steadily through early 2016, causing bankruptcies and consolidation in the industry.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FXStreetNews - 🏆 14. / 72 Read more »