Energy Select Sector SPDR (ETF) (AMEX:XLE)

CAPS Rating: 4 out of 5

Seeks to replicate the total return of the Energy Select Sector of the S&P 500 Index. It unbundles the benchmark S&P 500 and gives the investor ownership in particular sectors of industries that are represented by a specified Select Sector Index.

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Player Avatar GonzoDeluxe (41.23) Submitted: 10/15/2009 7:46:47 PM : Outperform Start Price: $56.52 XLE Score: -6.19

During 2008 it became obvious that we are on the cusp a permanent state of petroleum scarcity thanks to dwindling reserves and Asian growth. That, combined with the weakening dollar, will give about 2 years of ongoing earnings growth in energy companies that exceeds the growth rate for global GDP. After those two years, alternative energy approaches will really start kicking in and I expect this ETF to flatten out.

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