XLE is up over 68% while West Texas Intermediate Crude (WTIC) is basically flat year-to-date. The energy sector has been the strongest performing S&P 500 component, leaving everything else, including the index itself, in the dust.
XLE has had an incredible run
If you view XLE vs SPY on a ratio basis, you can hardly tell the broader market has been so bearish as the relative strength is incredibly impressive.
Suffice it to say, energy has been a safe place to hide in 2022. At least so far. But the question is will that outperformance sustain after this immense rally?