With the way oil prices have been moving, crude has been the darling of traders as of late, particularly those who thrive on volatility. But there’s also broad energy, which has been delivering stellar gains.
While all the talk is about oil these days, especially amid Russia’s invasion of Ukraine, another narrative is clean energy. U.S. president Joe Biden’s agenda has been clean energy and providing alternate, renewable sources, which is also propping up the energy sector.
The events occurring in Ukraine are only amplifying that. Both relying on domestic resources for producing oil and adding more renewable energy sources are benefiting the sector.
“We have to make sure that we get that kind of clean energy independence because that’s going to create real economic security for families in the decades to come,” Heather Boushey, a member of the White House Council of Economic Advisers, told Axios.
Of course, another driving factor of soaring energy prices is inflation. Inflation levels reached 7.9% during the month of February, which was tied up with rising prices for energy sources like gasoline.
“Higher energy prices, including gasoline price increases, helped push up the inflation reading, along with cost gains for groceries, restaurant food, transportation services and apparel,” a Wall Street Journal report says.
Up 90% Year-to-Date
Traders looking to supercharge their returns can look to broad energy as a potential play. For triple the leverage, one option from Direxion Investments is the Direxion Daily Energy Bull 3X Shares (ERX).
ERX seeks daily investment results equal to 200% of the daily performance of the Energy Select Sector Index. The index is provided by S&P Dow Jones Indices and includes domestic companies from the energy sector, which includes the following industries: oil, gas, and consumable fuels, and energy equipment and services.
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