FIF - Why Energy Still Looks Cheap
The S&P 500 Index rose roughly 8% in January, the best start to a year since 1987. Despite the magnitude of the rally, the S&P 500 Energy Sector has outperformed by more than 5%. As impressive as the gains have been, January's rally still leaves the sector below where it started December.
When I last highlighted energy stocks in mid-November, I focused on the discrepancy between the sector's valuation and oil prices. Shortly after both the sector and the commodity promptly plunged: Between mid-November and the Christmas Eve low, the S&P 500 Energy Sector Index