• Avoid This ‘Bearish Black Hole’ → Get Our Favorite ETF Ideas

    We warned investors about a “black hole of risk.” It’s here. Prepare yourself for what comes next. Get our Macro team’s favorite ETF ideas (and risk management levels) with 30-days free of “ETF Pro Plus.”

One of the best places to allocate your money when the U.S. economy is in Quad 3 (growth slowing, inflation accelerating) is in oil and energy stocks.

However, as Hedgeye Energy analyst Alec Richards explains in the clip above, not all energy stocks are created equal. As our back-testing shows, mid-stream energy companies have historically underperformed relative to the rest of the field.

“The expected return for midstream would be negative based on this back test,” Richards explains.

“But you saw the historical correlation break down in 4Q [2018] where the expected return was 4%. We would expect going forward for this space to track much more closely with the price of the commodity.”

Watch the full clip above for more.

Not All Energy Stocks Are Created Equal In Quad 3 - real time alerts