3min chapter

The Macro Trading Floor cover image

A 2023 Global Macro Outlook | Alfonso Peccatiello & Andreas Steno Larsen

The Macro Trading Floor

CHAPTER

Energy

I can only find one sector that looks outright cheap on forward P.E.'s relative to history, and that's energy. I'm not particularly upbeat on energy from a tactical perspective due to all of the risks looming surrounding the demand side of the equation. The remark I have there is that valuations are basically the multiple that investors are willing or are paying for a certain set of future cash flows. But I still think it makes a ton of sense to add that position to your portfolio and leave it there if you know what I mean.

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