I’ve hinted at it for a while now, but you probably don’t own enough energy.
And that’s not me pounding the table screaming “all in.”
It’s just understanding what you actually own.
To the average person, the S&P 500 is this diversified bucket of 500 companies.
To those who understand how the index actually works, it’s a momentum-weighted machine.
The winners get bigger. The losers get smaller. Strength gets bought. Weakness gets sold.
That’s the game.
And right now energy still sits at roughly 4% of the S&P 500.
Think about that.
Every dollar flowing into the index gives you about four cents of energy exposure.
So if energy continues doing what it’s been doing lately, ripping higher, reclaiming leadership, outperforming the market, you’re barely participating through passive exposure alone.
That matters.
Because this game is already hard enough.
It gets even harder when your portfolio structurally underweights the areas actually winning.
