“An improving macro backdrop has started a catch-up trade for Energy... The sector is outperforming the broader market with energy up 12.5% year to date while the S&P 500 is up 10.1%... Energy is also comparatively cheap, trading two times lower than its historical valuation vs. the S&P 500.”

 “The energy sector is demonstrating strength with a 'compelling valuation' that could set stocks up for a comeback after underperforming the broader market since September... We continue to believe we’re in a late cycle market environment, which has historically been supportive of Energy outperformance.”

 “So let the message be taken home that the regulator is in no way trying to be a show-stopper in this respect.”