The Financial Post reports in its Saturday edition that after years as the favourite investment vehicle for funds seeking energy exposure, Big Oil was dethroned by Big Green in a big way in 2020. The Post's Geoffrey Morgan writes that the year saw the oil-and-gas industry shrink to historic lows on North American markets: in April, it made up just 3 per cent of the S&P 500, a dramatic comedown from the 15-per-cent level at which it stood a decade ago. Many green energy investments, meanwhile, from electric-vehicle makers to hydrogen-fuel-cell producers to renewable power companies, had remarkable years. Shares of Tesla, for example, rose six-fold and the company joined the S&P 500 this month, while shares of B.C.- based Ballard Power Systems, a hydrogen trailblazer, more than doubled. Even renewables, the laggards in this group, jumped by more than 50 per cent. However, as the calendar flips to 2021 and investors begin to scour for stocks that have the potential to rebound with the broader economic reopening, the out-of-fashion oil-and-gas industry suddenly appears poised to win back some attention from its sexier green counterparts, with investors predicting a big "catch-up trade" for conventional players.
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