Why We’re Cautious About The Energy Sector

CEO David Trainer sat down with Chuck Jaffe of Money Life and MarketWatch.com this week to talk about our Danger Zone pick this week: Energy sector ETFs and mutual funds.

While energy prices look to have bottomed out at this point and it may be tempting to bet on a broad turnaround in the sector, the funds in the Energy sector simply do not provide compelling investments. This point rings especially true when considering the number of good stocks in the sector. The Energy sector ranks dead last out of all 10 sectors in our most recent 2Q15 sector ratings report. This is because 67% of Energy ETFs and mutual funds earn our Dangerous or Very Dangerous ratings.

Disclosure: New Constructs staff receive no compensation to write about any specific stock, sector, or theme.

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