Fueling the Portfolio: Why We’re Adding Energy in Uncertain Times

March 27, 2026

In investing, as in driving, there are moments when the road ahead becomes hard to read. The fog rolls in — geopolitical tensions flare, markets wobble, headlines compete for your attention — and suddenly the path that seemed clear just weeks ago is obscured. In those moments, experienced drivers don’t speed up. They slow down, tighten their grip, and lean on what they know to be reliable. That is precisely the posture we are taking in your portfolio today.

Oil: The Economy’s Backbone

It is easy to think of oil as simply a commodity, a price on a screen, a number in a news ticker. But oil is far more than that. It is the circulatory system of the global economy. It heats homes, fuels supply chains, powers manufacturing, and underpins the cost of nearly every good that moves from producer to consumer. When oil prices shift, the ripple effect touches agriculture, transportation, chemicals, plastics, and utilities. Few sectors of the economy are truly insulated from it.

Despite decades of investment in renewable energy and genuine progress on that front, global oil demand remains at or near all-time highs. The International Energy Agency projects that oil will remain a dominant energy source well into the 2030s. This is not an argument against the energy transition; it is simply a recognition of where the world is today. Energy companies that produce, refine, and distribute oil and gas are not relics of the past — they are essential infrastructure for the present.

Why We’re Adding Energy Exposure Now

Markets have pulled back in recent weeks, driven by a familiar mix of uncertainty: geopolitical tensions, interest rate concerns, and shifting growth expectations. In these episodes, many investors’ instinct is to retreat entirely — to sell, go into cash and wait for the fog to lift. We understand that impulse, but we believe it is the wrong response. Instead, we are using this correction as an opportunity to deliberately add exposure to energy stocks, and here is why.

First, valuations in the energy sector have become genuinely attractive. Many energy companies are trading at meaningful discounts to their intrinsic value, even as their balance sheets remain strong and their dividends well-covered. We are buying durable businesses at a discount which is precisely what long-term investing is supposed to look like.

Second, energy stocks have historically demonstrated defensive characteristics during periods of geopolitical stress. When global tensions rise, energy prices tend to follow, and energy producers benefit directly. In an environment where uncertainty is elevated, owning assets that may appreciate precisely when other parts of the market are under pressure is a sound risk management strategy.

Third, the income profile of energy companies adds another layer of resilience. Many of the companies we are adding pay substantial dividends. These are dividends that, in several cases, have been maintained and grown through prior downturns. While we cannot know with certainty what markets will do next, we do know that income continues to compound regardless.

Defensive, Not Fearful

We want to be clear: this move is not a retreat from your long-term investment thesis. It is a recalibration for the road conditions in front of us. Think back to that foggy drive. You don’t abandon your destination; you simply adjust your speed and your grip. You keep the headlights on, you stay attentive, and you trust that the fog will eventually clear. When it does, you want to be on the road, not parked on the shoulder.

Adding energy exposure in this environment is that adjusted grip. It is a way of participating in markets while tilting toward assets that carry their own natural hedge. It reflects our confidence not in predicting the future (no one can) but in making thoughtful, defensible decisions under uncertainty.

As always, we remain committed to helping protect what you have built while positioning you to benefit as conditions improve. We welcome any questions you may have about these changes, and we look forward to speaking with you soon.