XOP - Starting Valuations Are Incredibly Important

• 2022 has been a year of delineation, where overvalued equities have been punished, and undervalued equities have soared.
• The ARK Innovation ETF (ARKK) is a nice proxy for overvalued equities, and it's down 33.1% YTD in 2022.
• Meanwhile, the Energy Select Sector SPDR Fund (XLE) is higher by 31.8% YTD in 2022, and the SPDR S&P Metals & Mining ETF (XME) is higher by 29.0% YTD.
• Selected individual equities have done even better, with two of my highlighted breakout stocks for 2022, U.S. Steel (X), and Peabody Energy (BTU) sharply higher from when these were highlighted.
• Bigger picture, this is all part of a historical capital rotation from growth to value that has been ongoing for over two years now, with more room to run.

For further details see: