Don't Rush To Buy The Dip, It's Going To Be A Slow Summer

The last 3 trading days have offered energy investors a nice relief rally. But I am here to tell you that this summer is going to be slow (i.e. sideways). Every macro indicator I'm looking at from a portfolio management standpoint tells me that big money won't be looking at buying energy stocks anytime soon (next 3-4 months).

The first chart is the inflation indicator chart, which most of you are very familiar with. As you can see, we are seeing inflation expectations top out. This has been a key driving force for why money managers are buying energy stocks, but once the market expects inflation to peak, they will start to dump. We explained why in this article here.