Energy Sector Outlook: What We Are Watching

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Energy Sector Outlook: What We Are Watching

Energy Sector Outlook: What We Are Watching by LPL Financial

Key Takeaways

  • We are watching several key factors to assess the potential opportunity in the energy sector.
  • While we expect to try to take advantage of opportunities in this group in short order, we are not convinced that it now presents a great entry point.
  • We continue to recommend the consumer discretionary sector, where suitable, as a way to play low energy prices.

No sector is getting more attention right now than energy. Market participants are attracted to the potential upside after both oil and the energy sector suffered substantial declines in recent months. Many see the sector as cheap, something that is not easy to find these days in the U.S. equity market. We drive by gas stations every day where we see prices have been cut in half, serving as a constant reminder of how cheap oil is. In this commentary, we discuss what we are watching to assess the opportunity in energy.

Energy Sector Outlook: What We Are Watching

Here are some of the key factors we are watching to assess the potential upside opportunity in the energy sector:

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