Back in late December, the Energy sector was riding high on optimism of a Trump Presidency and the prospect of less regulation in the Energy sector. Six months, more supply, and -17% later, the sector, like WTI crude oil, is near bear market territory, in what has been an extreme period of underperformance. The chart below shows the rolling one-year performance spread between the S&P 500 Energy sector and the overall S&P 500. When the line is above zero it indicates that Energy is outperforming the S&P 500 while a negative reading indicates underperformance. In the last year alone, the Energy sector has underperformed the S&P 500 by more than 23 percentage points. While the margin of underperformance was a lot wider during the energy bust a couple of years back, since 1980 there have only been a handful of other periods where the margin of underperformance was this wide. More recently, since 2000, it has only happened twice.