Lipper data suggests that a total of 28 diversified mutual funds are planning to stay clear of energy stocks, despite shares in energy companies trading at their lowest levels in years following a 12-year low in the oil price. The average price for U.S. crude fell below $45 per barrel on Monday, its first day back above $50 since mid-2014. Other reason given for avoiding energy stocks, is that they are unlikely to recover until after the next recession once global economic growth improves.
Lipper data suggests that a total of 28 diversified mutual funds are planning to stay clear of energy stocks, despite shares in energy companies trading at their lowest levels in years following a 12-year low in the oil price. Graham Tanaka, portfolio manager at Tanaka Growth Fund, explained that he sold his energy holdings as he felt developments in technology, particularly in the fracking industry, would keep the market oversupplied. Other reason given for avoiding energy stocks, is that they are unlikely to recover until after the next recession once global economic growth improves.