Rays of Optimism Shine on Energy

Overall, it was a good first quarter, sparked by the roll-out of vaccines to quell the COVID-19 virus —
while it is too early to declare victory, the outlook for economic growth has improved dramatically.
Economists are revising upward their forecasts for global GDP growth and accommodative monetary
and fiscal policies continue to be the norm for the foreseeable future. The Energy sector may be
characterized as the comeback kid and was the best performing S&P 500 sector posting a 31% total
return. It was aided by the 21% gain in crude oil as the WTI price at the end of the quarter stood at
$59.16 per barrel. Interest rates also rose with the 10-Year Treasury ending the quarter at 1.74%, a
52-week high and nearly double the 0.92% yield at the start of the year.