Energy sector unlikely to return to 30 percent, Meb Faber notes

Energy sector unlikely to return to 30 percent, Meb Faber notes
Energy sector could reach 10 percent

Meb Faber suggests that while it is unlikely for energy to make up 30 percent of the stock market again, a move toward 10 percent is plausible.

The comment points to potential shifts in the market composition for the energy sector relative to other industries.

Faber has previously observed that margin traders typically lose money at the time of buying rather than selling, referencing Edwin Lefevre’s perspective in a recent note. He has also highlighted Howard Marks’s view that investors should celebrate uncomfortable and lonely positions in markets, according to a separate commentary. These views frame his current outlook on potential changes in the energy sector’s market weight.

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