So then if the energy companies "under perform", then oil becomes scare and then oil prices rise again and then oil companies do well again.
What's the problem here?
That cycle takes at least a year and a half. More likely 2 and a half. While its under performing all sorts of stuff under performs. Including a lot of your mutual funds. People get laid off across a large spectrum of our work force. People lose houses, the don’t buy cars. It slows large parts of the economy during the down time. Its a bigger deal than your $100 a month savings in your fuel cost.
That cycle takes at least a year and a half. More likely 2 and a half. While its under performing all sorts of stuff under performs. Including a lot of your mutual funds. People get laid off across a large spectrum of our work force. People lose houses, the don’t buy cars. It slows large parts of the economy during the down time. Its a bigger deal than your $100 a month savings in your fuel cost.