This fund manager has to invest in energy stocks but warns the oil rally is unsustainable

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 97%

Singapore News News

Singapore Singapore Latest News,Singapore Singapore Headlines

Are you sure energy is a safe haven? Here's why one fund manager is pessimistic on oil prices.

If there’s one place to hide in the current market turmoil, it’s been in the energy sector, as oil prices CL.1, +1.16% have surged to eight-year highs. RBC Capital Markets, for instance, just threw in the towel on its underperform call on Exxon Mobil XOM, +1.68%, flatly saying it was “wrong” about the oil giant, which was one of the handful of S&P 500 components to climb on Tuesday.

There’s also potential, he added, for productivity gains to pressure the cost curve for oil. Rig productivity in the Permian Basin should eventually catch up with that of the Bakken region. The chart Are rising yields so bad for stocks? Historically, not so much, at least according to this chart from Callie Cox, investment analyst for eToro, who said the average 12-month return on the S&P 500 SPX, -1.84% of 9% after bond-yield spikes. “Stocks tend to like higher yields, they just take a while to digest,” she said. Not pictured, but the Nasdaq-100 NDX, -2.57% historically also has seen strong 12-month returns, of 16%, after yield spikes, she noted.

A leading Tesla TSLA, -1.82% shareholder asked the company to issue deliveries guidance above Wall Street estimates.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in SG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Mid stream energy stocks are under valued.

Singapore Singapore Latest News, Singapore Singapore Headlines

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

Stocks fall as 10-year yield spikes, oil tops $84Rising yields hit stocks as investors return from the three-day weekend.
Source: FoxBusiness - 🏆 458. / 53 Read more »

European Stocks Drop as Yields Tick Higher, EU Stocks, DAXUptick in US -2 year yield has EU equities trading lower – in lead up to Fed meeting next week. Get your market update from RichardSnowFX here:
Source: DailyFX - 🏆 305. / 63 Read more »