Biggest recovery winner: energy prices
Energy prices soared more than just about any asset class since the market's rock-bottom in March 2020.
Why it matters: Economists view the surge as a potential threat to the ongoing economic recovery.
By the numbers: Three of the five top-performing asset categories since March 23, 2020 — the lowest point of the bear market — are energy-related, according to data from S&P Global Market Intelligence.
- Fuel prices rebounded so massively in large part as a result of “an exceptionally rapid global economic recovery … a cold and long winter in the Northern Hemisphere, and a weaker-than-expected increase in supply,” analysts with the International Energy Agency write.
The big picture: Energy production and investment had already been failing to keep up with demand prior to the pandemic.
- The health crisis dragged new oil and gas investment to a near-record low, intensifying the imbalance between supply and demand, according to the IEA, per Bloomberg.
On the flip side: Of more than 70 asset groupings that S&P examined for Axios — including international indexes, commodities and precious metals, and fixed income instruments — only five categories declined in price, most of which were related to U.S. treasurys.
- S&P used the price of ETFs managed by iShares to track the relevant treasury categories.