Energy?

[Alderman]

I’m a novice at investing. I invested some in Venax—Vanguard Energy Fund At and so far it has had a decent return for me. It is a bumpier ride than with the Total Stock Market fund.
What are the thoughts of others on the energy stocks?
I keep thinking it will do well if and when the covid situation abates and the current administration drives up the price of oil.

 

[NW-Bound]

I have some energy stocks and ETFs. Thought I had a lot, but just added them up and found out that they are about 4% of portfolio, not including what might be in some MFs that I have.

Energy is an undervalued sector. It used to be 5-6% of the S&P, dropped to 2%, and is now perhaps 2.5-3%. Thought about buying more, but I am already overweight this sector, so may not do it.

Yes, I think this sector will continue to recover when Covid abates and people take to the road again for vacationing this summer. Airline flights will also resume. The world still needs oil.

 

[bolt]

A friend having been lucky with VGENX for the last decade or so recently liquidated it.
Energy (oil, gas) went from near 20% of the SP500s make-up decades back to closer to 2% today. AFAIK.

IMO you'd be betting on outdated technology to continue delivering.
Thats my understanding.

Good Luck & Best wishes....