The Market Rotation Trap: Why Energy's Safety Trade Could Disappoint

JR ResearchInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryAI infrastructure's energy demands are driving renewed interest in both traditional and clean energy sectors, but clean energy has notably outperformed fossil fuels in 2025.Key midstream LPs like Energy Transfer and Enterprise Products Partners remain undervalued, with ET offering an 8.3% forward yield and trading 15% below its 10Y average.Despite attractive yields, energy sector volatility and oversupply risks have limited valuation upgrades for ET, EPD, and peers relative to the broader market.I maintain a growth and tech-centric portfolio, favoring AI and tech stocks over utilities or energy, as tech continues to lead market advances amid dovish Fed policy. Paul Campbell/iStock via Getty Images Energy Infrastructure And AI: It's Complicated It's nearly impossible for me to think about the AI infrastructure trade and not consider the other "constituents" to make this setup happen. After all, I don't think I need to demystifyThis article was written byJR Research45.79K FollowersFollowJR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing. He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities. He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out. The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations. Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in the shares of QQQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.