Barrons / interesting idea : oil stock ignorers -- would have to start buying shares ............................
From : cover story this week
Barrons
May 19, 2023
10 Stocks to Play a Resurgent Energy Sector, From Our Roundtable Experts
Our energy roundtable predicts higher crude prices as global demand grows. What’s ahead for shale, energy transition.
By Avi Salzman
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comment from Christyan Malek, global head of energy strategy and head of Europe, the Middle East, and Africa oil and gas equity research at J.P. Morgan
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<<<<< I meet with a lot of the CIOs [chief investment officers] in Europe. I asked one in Sweden, “At what point would you get involved in energy?” And he said, “Once it gets to 7% to 8% of the index, we have a problem. Then you are under-performing your own [stock market] benchmarks.”
There’s a pain threshold. It has been OK not to be in energy, because it has underperformed, so there has been no FOMO [fear of missing out]. But as energy outperforms, then it starts to become a larger part of the index and you can’t ignore it. >>>>>
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a chart (which I cannot copy here), had this :
<<<<< Energy stocks account today for less than 5% of the benchmark U.S. stock index [ the S&P 500 index ], down from 16% in 2008. >>>>>
Jon.
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