Do not store traditional energy reserves for the sun yet, there are two traders.

It is important to rely on traditional energy reserves, although there has been a recent resurgence in solar names, there are two traders.

The popular Invesco Solar ETF (TAN) rose nearly 10% this week, partially supported by Enphase Energy’s surge after a record third-quarter earnings. TAN hit the energy sector sector SPDR Fund (XLE) last month, an increase of about 22 percent compared to XLE 8.5%.

“We believe it is more valuable in the energy sector,” Michael Bapis, managing director of Vios Consultants, told CNBC’s Trading Nation on Wednesday, although oil and gas reserves are facing some major challenges, including rising U.S. crude oil reserves.

“They play a big role in the recovery of the basic economy. They will be one of the main beneficiaries of the infrastructure,” said Bapis, who is in Rockefeller Capital Management.

“There is more demand than supply. Winter is coming,” he said. “We have a growth-to-price cycle and energy will be of great benefit to that. And in the end, they are always important values ​​in our analysis.”

With high cash balances and attractive dividends, the price of energy stocks is still “reasonable” even with the increase in solar and other energy sources, Bapis said.

“Both … are important, but we are supporting the energy sector.”

XLE’s top weights are Exxon Mobil, Chevron, Schlumberger, EOG Resources and ConocoPhillips. The executives of Exxon, Chevron, BP and Royal Dutch Shell testified before Congress on Thursday about what and how well their company is covering the real impact of climate change.

Another trader was not ready to destroy the traditional energy names.

“We are in a state of transition,” said John Petrides, manager of Tokkeville’s asset management portfolio.

“As you can see from the global shortage, we still need traditional fossil fuels, but at the same time they cannot ignore climate change and the pressure on alternative energy.”

He pointed out that the United States is exposed to both when it comes to long-term shifts.

“We can’t live without one, but we are moving to the other side and we are not on the same side of the boat from traditional power to alternative,” he said.



Leave a Comment