Former institutional trader Kevin Muir is buying energy stocks despite a 16% drop in global benchmark Brent and West Texas Intermediate crude over the last five sessions, calling the move an 'insane call' that he believes will pay off. Muir, who writes the Macro Tourist Substack, argues that diminished global oil stockpiles will ultimately drive prices higher, and that the market's focus on a U.S.-Iran peace deal is too obvious a trade. He notes that U.S. stockpiles are at their lowest level in more than 40 years, and governments will need to refill inventories and buy even more to protect against future crises. Muir favors energy equities, pointing to the S&P 500 energy subsector index trading at a multiple of 12 times earnings, down from 20 times earlier in the war, and predicts earnings could grind higher and the multiple could rise to 16. He previously made a timely call to buy oil in January when West Texas Intermediate was at $57 a barrel, and it has since risen 31%.
Compass Inc
La-Z-Boy Incorporated
Palantir Technologies Inc.
Tesla Inc
