Natural resources in general have been weighed down by concerns over slowing global economic growth.
From the Financial Times:
Apple is now worth more than all large-cap US energy stocks put together. A roaring share rally has pushed the iPhone manufacturer’s market capitalisation to nearly $1.2tn, surpassing the value of the S&P 500 energy sector and wresting back the crown of the world’s most valuable listed company from rival Microsoft.
Apple’s shares have climbed almost 70 per cent this year, touching a new high of $267.84 earlier this month. That has wrongfooted many fund managers who fell out of love with the company last year on concerns over the mounting trade war and slowing iPhone sales…
By comparison, the overall market cap of the S&P 500 Energy index currently stands at $1.12tn. While swaths of global markets have roared higher this year, oil prices have failed to claw back the losses of the last quarter of 2018, and have mostly meandered around the $60-$70 a barrel range.
Investors are also starting to turn against over-indebted and climate-unfriendly industries like energy, according to Goldman Sachs. “Not only are these industries still facing too much capacity, in our view, but they also have too much debt relative to their earnings and are carbon intensive, all three of which have discouraged investors in 2019,” the bank’s analysts said in a note.
My take: Remember when the market caps of Apple and Exxon Mobil were neck and neck?