FYI: You know you’re getting old when you can’t remember the last time Energy stocks were a market leader. The chart below shows the relative strength of the S&P 500 Energy sector versus the S&P 500 going back to August 1989. When the line is rising, it indicates periods where Energy is outperforming the S&P 500, while periods of Energy sector underperformance are indicated by falling lines. The period from September 1990 through January 1999 was one where the sector was out of favor, and it was towards the end of it when Exxon merged with Mobil and then Chevron merged with Texaco. At the time those mergers were announced, the sector was right in the midst of putting in a multi-year bottom that sparked a nine-year period of major outperformance by the sector.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/energys-lost-decade/
