Basic Materials Sector To Outperform In 2026 While Energy Lags
Summarize this article with:
Damon JuddInvesting GroupFollow5ShareSavePlay(11min)Comment(1)SummaryI expect the Basic Materials sector to outperform in 2026, driven by record-high metals prices and robust demand.Linde, Newmont, and Freeport-McMoRan are top XLB holdings, each positioned for earnings growth and strong free cash flow.Energy sector faces headwinds from a projected oil surplus, with little expected EPS growth for Exxon Mobil and Chevron in 2026.I favor high-yielding ETFs in precious metals and midstream energy for income, while remaining cautious on oil majors due to bearish price forecasts. FeelPic/iStock via Getty Images As part of my due diligence for securities that I am interested in, I follow the macro events that dictate which investments may perform better at various times throughout the economic cycle. While I expect the bullThis article was written byDamon Judd8.34K FollowersFollowNow retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Since that time I have done considerable research and vowed to make smarter long-term investing decisions after suffering through the Great Recession with minimal losses to my inherited portfolio, after firing my financial advisor.I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security. I also enjoy reading investment/financial and business information and following trends in technology and markets. The human psychology of markets is as fascinating and inscrutable to me as the financial side. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.” Damon RunyonAnalyst’s Disclosure:I/we have a beneficial long position in the shares of GDXY, IAUI, SLVO, SRV, TYG 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.