- Crude has retraced about half of its 54% drop since last summer. According to a recent note by Wells Fargo, this is the fifth time since 1980 that oil prices have fallen by more than 50%. In the year following the bottom, crude prices bounced back by 70% on average.
- Energy stocks are a poor way to play the rebound. During the 70% retracement period, energy stocks fell 4.8% while the S&P gained 21%.
- Source: The Reformed Broker
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