It’s going to take more than a pesky pipeline shutdown to knock energy stocks off their pedestal as this year’s best performing group in the S&P 500. Indeed, while the market focuses on popular meme stocks, alternative energy plays, tech and Tesla, the best place to make money in 2021 has been that old warhorse, the crude patch.
Oil & gas shares are up 40% this year compared with a 11% gain in the broad equities benchmark. Despite headwinds from regulatory concerns and the popularity of ESG investing, the group has continued to surge higher on rising oil prices, improving earnings and a market-wide rotation into value stocks. The mantra of limited capital spending and low growth appears to be working. Even the hacking of the largest fuel pipeline in the U.S. last week couldn’t halt the gains.
