With the stock market being turned on its head in 2022, could an energy stock portfolio be the answer? It's become increasingly difficult to know what to invest in and/or where to start.
I am of the unpopular opinion that you cannot predict the performance of individual stocks, but should rather follow the general trends.
In a previous post last year, I wrote about portfolio diversification and how to invest in the S&P500 for broad coverage of the stock market. This belief has only strengthened knowing the market has/ is experiencing a dip, which eventually will recover and exceed previous highs.
Best-performing stock portfolio
Yet, I've started to explore industries that are doing well in the short to mid-term for compensation to my general portfolio, which isn't very much in the green. When exploring online, I found that nothing really seems to beat the energy sector at the moment. A return of 12% in the last 2 years might seem mediocre, but when comparing this to the S&P500 for the last two years which did not net more than .5%, it's a considerable performance.
Utilities, energy, or power portfolio seem popular at this time and there is no surprise as to why. The world has endured a serious blow in the last several years with covid, war & more divided politics than ever before. All these factors have contributed directly to rising and unstable energy prices for homeowners and renters alike.
With nearly all people globally paying more for energy with less supply & equal or more demand, prices have soared. Although this seems to be stabilizing somewhat, energy companies are, generally speaking, doing well because of it.
This brings me to the logical conclusion that an energy/utility stock portfolio would be beneficial to investors in 2023 & beyond. If this is an option you might consider, then most brokers offer some form of energy stock portfolio you can buy into. One of the easy options to get exposure, and used for this article as well, is Utilities, energy by Etoro.
|Broker name||Type||Review||Rating||Broker site|
|CMC markets*||Mostly Trader||Link||4.5||Visit broker|
|Nordnet||Investor & Trader||Link||4.4||Visit broker|
|Trading212||Investor & Trader||Link||4.1||Visit broker|
|Bux Zero||Investor & Trader||Link||4.0||Visit broker|
|Admiral Markets||Investor & Trader||Link||4.0||Visit broker|
|Fusion Markets*||Trader||Link||3.5||Visit broker|
*If you choose a trading broker, please remember: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.