Posted August 03, 2022
By Matt Insley
Oil Dominates 2022 ETF Gains
“I still think you can make money holding oil stocks this year,” says our retirement-and-income specialist Zach Scheidt.
While Wall Street’s consensus is that a looming recession will put a major damper on oil demand, Zach holds a contrarian perspective: “This creates an opportunity — especially when looking at the details of how these stocks trade.
“Many blue chip oil stocks are trading at prices that already account for a major pullback in oil prices,” he says. “In fact, one of the analysts I talked to… said these stocks are trading as if oil were priced at $65 per barrel.
“Many of these stocks are now at key support levels with plenty of room for a rebound.”
The cleanest way to play oil is an ETF, and Zach suggests the S&P Select Energy SPDR (XLE) — which is up around 30% year-to-date!
And for more on the energy sector, and ETFs, read on…
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Your Rundown for Wednesday, August 3, 2022...
Best Performing ETFs (2022)
Notice a pattern?
Source: The Street
Eight of the top 10 best performers are energy/oil ETFs (and that’s up from seven in 2021). Plus, energy and commodity ETFs dominate the chart’s 20 remaining slots too.
“It should be no surprise that energy and commodity ETFs are all over the 1st half top performer list,” The Street says. “In fact, all but three of the funds are related to energy or commodities in some way.
“Some of the more targeted products focused on gas and oil performed best, but even generic broad index funds delivered huge returns.” Including XLE…
So, even as green energy ETFs churn and burn, oil remains energy’s key driver. “Oil may be fading away,” says ETF.com, “but it will be a very slow fade.”
Market Rundown for Wednesday, Aug. 3, 2022
Yesterday’s modest gains for the S&P 500 have evaporated in pre-market trading (-0.67%).
WTI Crude is up 1.45%.
Gold resumed its recent upward trend, up 0.75% this morning.
Bitcoin has jumped 1.44%.
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