Saturday , April 29 2017
Home / FT Alphaville / Snap AV: Falling knife looks a bit less sharp these days

Snap AV: Falling knife looks a bit less sharp these days

Summary:
Goldman Sachs’ David Kostin points out that US energy stocks have underperformed crude-oil prices and the S&P 500 over the past few months:Although the performance of Energy stocks relative to the broad S&P 500 typically tracks the price of crude oil, the equity sector and the commodity have recently reached their widest divergence in more than five years. Since early December, while the S&P 500 has rallied by 8% and WTI has climbed by 2%, the S&P 500 Energy sector has declined by 3% (Exhibit 4).It’s one area where both mutual funds and hedge funds were overweight coming into the year, the strategist writes in his weekly note. It’s certainly looking more attractive, if this handy valuation chart is to be believed:They say you shouldn’t try to catch a falling knife, but what if the falling

Topics:
Alexandra Scaggs considers the following as important:

This could be interesting, too:

FT Alphaville writes Thought for the weekend

Guest writer writes Guest post: A safe asset for Europe

Izabella Kaminska writes Who are Tesla’s competitors, really?

Alexandra Scaggs writes A conversation about the Fed’s balance sheet — updated

Goldman Sachs’ David Kostin points out that US energy stocks have underperformed crude-oil prices and the S&P 500 over the past few months:

Although the performance of Energy stocks relative to the broad S&P 500 typically tracks the price of crude oil, the equity sector and the commodity have recently reached their widest divergence in more than five years. Since early December, while the S&P 500 has rallied by 8% and WTI has climbed by 2%, the S&P 500 Energy sector has declined by 3% (Exhibit 4).

It’s one area where both mutual funds and hedge funds were overweight coming into the year, the strategist writes in his weekly note. It’s certainly looking more attractive, if this handy valuation chart is to be believed:

Snap AV:  Falling knife looks a bit less sharp these days

They say you shouldn’t try to catch a falling knife, but what if the falling knife is tied to another knife, and everyone thinks that knife has already hit the ground, and… well, you can just read more in the usual place.

Related links:
This inflation is headline, the other one is far away – FT Alphaville
Bowleven, the former exploration and production company – FT Alphaville

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.
0 0
Alexandra Scaggs
Alexandra Scaggs is a markets reporter for the Wall Street Journal in New York. She writes about the U.S. stock market and investment trends. She also covers the business of markets research, writing on the calls, personalities and moves of high-profile analysts and strategists. Ms. Scaggs graduated from Washington & Lee University with a degree in business journalism.

Leave a Reply

Your email address will not be published. Required fields are marked *