Energy Stocks Relatively Attractive: BofA's Subramanian

The video discusses the current and future outlook of the energy sector, emphasizing the importance of valuation and positioning. Despite a strong performance, energy stocks remain underweighted by fund managers due to ESG concerns. However, the sector's attractive free cash flow yield and inflation-protected yield present significant investment opportunities.

What is a key factor to consider when evaluating the energy sector's outlook?

• Past downward trends

• Market rumors

• Current stock prices

• CEO statements

Why might fund managers be hesitant to invest in energy stocks?

• ESG stigma

• High volatility

• Lack of innovation

• Low dividends

What could happen if the energy sector performs well and a fund manager is not invested in it?

• It could boost their portfolio

• It would increase their risk

• It could hurt their performance

• It would have no impact

What is a notable feature of energy companies' free cash flow yield?

• It is unpredictable

• It is negative

• It is lower than inflation

• It is higher than TIPS

Despite strong performance, why does the energy sector still offer attractive opportunities?

• Low market interest

• Strong free cash flow

• High volatility

• Limited competition