“History may not repeat itself, but it rhymes” – Mark Twain Today’s energy shock echoes Russia’s invasion of Ukraine in 2022 when energy equities were clear beneficiaries. In 2022, the Energy Sector returned +65.7% (as measured by the S&P 500 Energy Index) vs. -18.1% for the S&P 500. Over the 3 years to follow the Energy Sector underperformed   While it still posted respectable annual returns of 12.9% (with dividends reinvested), this still fell well short of the S&P 500’s st

ENERGY STOCKS DOMINATING IN 2026 Energy is the top performing sector year-to-date with a price return of 22.0% vs. 0.9% for the overall market as of 2/20/26. So, what is driving the outperformance? Let’s distinguish the signal from the noise:   REVERSION TO THE MEAN .  After several years of underperformance, energy is the top performing S&P 500 sector by a wide margin after being near the bottom last year— Source: Bloomberg. Performance figures as of 2/20/26   —and yet the

THE POTTERY BARN RULE: YOU BREAK IT, YOU OWN IT The phrase “you break it, you own it” has recently been invoked as a warning against the U.S. pursuing regime change in Venezuela (and perhaps Iran) and facing unintended consequences. Perhaps a poor analogy geopolitically, we believe it applies well to company management teams. Management owns the decisions it makes; investors, by contrast, can sell their stock and move on.   Some of the most important decisions companies must