Stocks to Energize Your Portfolio

Energy stocks that have performed poorly in recent years have now started to perk up. Buy some, but don’t go nuts.

Worker on the boat look at Oil and gas industrial platform in the gulf or the sea, The world energy of oil and gas company, Offshore oil and rig construction. Industry concept.
(Image credit: Chain45154)

If the energy sector tempted you to invest 10 years ago, you would have done better putting your cash under the mattress. The MSCI USA IMI Energy index lost an average of 0.2% per year over the past decade. That compares with a yearly return of 8.5% for MSCI's overall U.S. stock market index. And energy stocks were one-third more volatile than the market as a whole. High risk, low reward—not a great formula for investors. (Prices and returns are as of May 18.)

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

James K. Glassman
Contributing Columnist, Kiplinger's Personal Finance
James K. Glassman is a visiting fellow at the American Enterprise Institute. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence.