Navigating Market Volatility: The Impact of Global Events on Energy Markets

Jeff Green |

As a Financial Advisor and the founder of the Green Financial Group, I've spent my career helping clients navigate the complex world of retirement planning and wealth management. One sector that continuously faces high levels of volatility is energy - particularly oil and gas. Geopolitical events, economic factors and other global happenings can trigger significant fluctuations. These shifts can dramatically impact professionals within this industry and their investments.

Recent Instances of Market Volatility
Over the years, we've witnessed numerous global events that caused considerable disruptions in the energy markets. Political instabilities, trade wars and environmental disasters all carry the potential to send oil and gas prices into a tailspin. A prominent example is the geopolitical tensions in the Middle East, which regularly influence the price of oil due to the region's significant contributions to the world's supply. The global pandemic of 2020 demonstrated how an unexpected event could send shockwaves through the energy markets, with demand for oil plummeting and causing a historic drop in oil prices.

Staying Informed: The Green Financial Method
To stay on top of these uncertainties, oil and gas professionals must remain informed and responsive. At the Green Financial Group, we use our proprietary approach known as the "Green Financial Method." This method involves engaging in a tactical asset allocation process where we identify, through technical analysis, whether we believe the broad trend of the market is up or down. When we believe it’s up, we then seek to identify those sectors leading the market higher and the strongest stocks within those sectors.

Analyzing Market Trends and Adjusting Investment Strategies
Our belief is in striving to buy strength and sell weakness. Our investing methodology is a system of sector rotation, based on relative strength.  We believe, when executed properly, this tactical process has the ability to perform better than modern portfolio theory’s “buy and hold” approach, or as we call it, the “sit and take it” approach. We prefer to look for opportunities in what we perceive to be those stronger asset classes and strive to minimize losses from what we believe to be weaker asset classes.

A Proactive Approach to Navigating Market Volatility
Remember, all investing involves risk, and profit or loss can occur regardless of the strategy selected. But we believe with careful attention to global events, a deep understanding of market trends and a willingness to adjust strategies as necessary, oil and gas professionals can better navigate the challenging waves of market volatility. While global events will continue to impact the energy markets, we at Green Financial Group are committed to helping our clients navigate these complex currents, striving to preserve the wealth and assets you've worked so hard to earn.


Note: The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Jeff Green and not necessarily those of Raymond James.