In the fabulous year and an unforgettable decade for the Wall Street Bulls there was a sector that was clearly below the record of the rest: energy. After a nearly 70% rise between 2010 and 2014, closely following the S&P500, the energy group corrected sharply, in line with oil prices, driving the S&P500 Energy into negative territory in 2016, then moving in a sideways trend that gives the sector a 6% marginal gain over 10 years, when S&P500 gained nearly 190% in the same period.
This less exuberant behaviour of the energy market could continue in the decade now just the beginning, unless it is clear that the sector is reinventing itself and having a smaller preponderance of oil companies, as it seems that “black gold” will tend to be gradually less used in production, electricity and mobility. Mainly because the rapid growth of renewables and non-renewables such as nuclear power in recent years. China has the largest number of reactors under construction, out of 50 being developed by 15 countries.
Photo by Dan Meyers.
