RAKING THROUGH THE WRECKAGE

摘要

So first,what happened? The XOP,or S&P Oil & Gas Exploration & Production ETF,slumped by more than 20% in July-August,touching an all-time low on Aug.27.As pointed out by Simmons Energy,just one of the so-called FANG stocks,Facebook,now has a market cap-$525 billion as of mid-August-larger than the entire E&P sector,from Cono-coPhillips Co.at the high-end all the way down to micro-cap E&Ps.Oh,and by the way,you could add in 90% of Chevron Corp.’s market cap,to top it off,added Simmons.The sell-off leaves the energy components of the S&P at about 4.4%,down from 5.3% at the end of 2018.In part,the downward rerating of energy reflects fears of a protracted period of trade tensions or a possible recession.Under these circumstances,”risk-off or”haven assets”(U.S.Treasuries,gold)do better,while”risk-on”or”growth assets”(energy,copper)perform poorly.