Investors have signaled their optimism, making April one of the best months in market history; the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) is off only 9.3% since the beginning of 2020, even with the economy still in freefall. Oil stocks, on the other hand, continue to lag. The Energy Select Sector SPDR ETF (NYSEMKT: XLE), representing the oil and gas stocks in the S&P 500, is down more than 36%.
For many investors, this points sharply at Big Oil -- the biggest companies in the oil patch -- as being great investments as one of the few sectors that is still well below 2020 highs. The risk, of course, is mistaking size for strength; we've already seen several Big Oil companies cut their dividends, and it's entirely possible we could see one or more go bankrupt before this downturn is over.
Image source: Getty Images.