Europe Entering Another Energy Crisis, Markets Might See A Repeat Of 2022 Selloff

Summary European natural gas inventories are at lows not seen since 2021, right before the 2022 energy crisis started. As a result of that crisis, 2022 was a rare down year for the S&P 500, with a sizable 18% decline. Markets could potentially see a repeat of the 2022 selloff, with the crisis potentially amplified by a brewing diesel crisis. The US might try to protect itself through diesel export curbs. That will only accelerate the crisis elsewhere, while the fallout from a global economic crisis is not avoidable. I am positioning my portfolio accordingly, with a defensive approach, raising cash, investing in defensive stocks, and looking to reduce my sizable energy position on rallies. szakalikus/iStock via Getty Images Investment thesis Stock markets in Europe held up well in the last few years, considering the stagnant European economy in the aftermath of the 2022 energy crisis. The S&P 500 ( SPY ) did only slightly This article was written by Zoltan Ban 8.76K Followers Follow My name is Zoltan Ban, I have a BA in economics. I am a personal investor with two decades of active trading experience. Analyst’s Disclosure: I/we have a beneficial long position in the shares of KMB, ABT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.