Yo, Charts – ‘Nuff said pic.twitter.com/SXUP9JDCeb
— da Chart Life (@daChartLife) May 16, 2022
Today’s Chart of the Day was shared by John Roque (@daChartLife). It’s a ratio chart of the Energy sector vs. the Tech sector. The Energy sector continues to be the only place to hide, closing at multi-year highs on both an absolute and relative basis today. It’s up more than 50% year-to-date, while the next best sector (Utilities) is up less than 1%. On the other hand, the beloved Tech sector is down more than 22% over the same period. As dramatic as the rotation into Energy has already been, John points out that it could be in its early innings. This sector was shunned by investors over the past decade, as they preferred the more innovative, ESG-friendly stocks that were outperforming. Now that those stocks are underperforming, will investors chase performance in the only sector that is working?