We’ve been going heavy on the energy sector because it’s been one of our highest conviction calls. We continue to remain bullish on Energy on a long-term secular basis because of the inherent undersupply.
But, even in the intermediate term, oil prices continue to signal bullish for us because of:
A higher demand is being brought back by global manufacturing picking up.
An undersupply due to reduced OPEC+ quotas remaining in place (to a certain extent until the end of the year)
Geopolitical tensions weighing on Middle Eastern and Russian oil supplies
Our next pick is a company that I really liked in 2022 and rode it all the way to its peak. The stock saw a +49% return in 2022.
Unfortunately, 2023 wasn’t a stellar year for this company and we saw the price pull back -26%. Year-to-date, however, we’ve seen some recovery and we expect this to continue, not only because of higher oil prices but, because of fundamental aspects within the company.