In a surprise to most market participants, the strongest performing sector of the S&P 500 for the opening month of the year was Energy. While crude prices remain relatively low compared to the last five years, the largest oil companies in the world are all breaking out to new all-time highs. This is a trend we have been focused on since the sector began digesting those massive gains from 2020-2022 over the last couple of years and it began showing signs of life again by testing those former highs multiple times last year.
However, it isn't just Energy that has been making noise in the commodities space. Last week we saw the largest single-day decline in both Silver and Gold after both commodities traded parabolically for nearly a month. Even with this massive drop, over the last six months Silver has still doubled and Gold is up almost 40%. Both of these historic rallies come at a time when the dollar has been steadily selling off and interest rates have been slowly climbing. Those massive rallies seem to be digesting quickly through price rather than time, offering an attractive entry point into a trend that should continue given the economic and political landscape.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. The content is developed from sources believed to be providing accurate information.
The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. Indexes are unmanaged and cannot be invested in directly.
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