The Bear Case for Oil Stocks

Disappointing economic growth ahead and XLE has decoupled from WTI.

Oil stocks (and energy stocks in general) have had a great run over the past two years fueled by an overstimulated economy and backfiring ESG rules. Investors did not want to touch them for years which led to severe undervaluations. There are quite a few proponents forecasting a longer term energy/oil bull market. A prominent example is Lyn Alden who ha…