One More Look at Energy in April

I have noted the tendency for strength in the energy sector in general and crude oil in particular here, here and here. Still sometimes investors see a reference to a "sector" and they are not entirely sure how to access that, and a lot of people are shy about trading a specific commodity such as crude oil. 

So just to clarify, let's take one more swipe at the energy sector in April.

Ticker FSENX

For testing and illustrative purpose, we will use monthly total return data for ticker FSENX (Fidelity select Energy mutual fund) since inception in 1981 as a proxy for the broader energy sector. For actual trading purposes there are plenty of alternative including - but not limited to:

The chart below displays the cumulative growth for FSENX if held ONLY during the month of April. The lower left to upper right nature of the equity curve is fairly obvious.

The table below displays the year-by-year results for FSENX in April.

The table below displays the summary of FSENX April performance.

Summary

The good news is that FSENX has clearly been a stellar performer historically during the month of April. The bad news - as always - is that there is absolutely no guarantee that FSENX (or anything else energy-related) will necessarily perform well during April of 2021.