The main part of this chart shows how the Magnificent 7 has performed relatively against the Energy Sector.
You can see the Mag 7 performance at the top, and the Energy Sector’s performance at the bottom.
But if you look at the main chart, you can see that the Mag 7 has been outperforming the Energy sector since December 2022.
However, in December 2025 it hit the same level it ran into in October 2020.
And instead of breaking past it…
The Mag 7 to Energy ratio broke down instead.
The exact same thing happened in October 2020…
And the Mag 7 didn’t start outperforming Energy again until over 2 years later.
And while it’s true that 2022 was a bear market…
I want you to notice that the ratio broke down in October 2020 – over a year before the bear market began.
There are two conclusions to draw from this.
One – energy can outperform Big Tech even in a bull market (which we’re still in now).
And two – it’s possible for rotations to last for years.
Will this rotation last for months or even years?
No one can really say.
But at least for now, focusing on the energy sector (among a few others) is probably a good idea.
But there’s one important thing to keep in mind, which I explain below.
