These Stocks Should Be The Winners Of The Next Decade

SectorFinancial Markets

Yesterday, we talked about the buying opportunity in oil and oil and gas stocks.

Today, oil was one of the biggest movers in global markets—up 4.5%, back above $70 a barrel.

And energy stocks were the best performers on the day in the S&P 500, up 3.5% as a sector.

This aligns with the big outperformance of small-cap value over the past two days.

As we’ve discussed here in my notes for the better part of last year, we should expect small-caps and value to outperform large-caps and growth stocks coming out of recession, and moreover, persistently outperform large-caps over the next ten years.

Indeed, that has been the case. From the fourth quarter of last year through the first quarter of this year, small-cap value outperformed large-cap growth by the widest margin since World War II.

Coming out of recession, small-caps tend to follow the path of interest rates (climbing rates, suggests more optimistic outlook). With that, as interest rates (the 10-year yield) rose more...