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Crescent Point Energy Corp. (CPG)
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Whitecap Resources Inc. (WCP)
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Sprott Physical Gold Trust Unit (PHYS)
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Sprott Physical Uranium Trust (U.UN)
Q: Since early 2023, I de-risked my general asset allocation to 30% equity. 30% ultra-short-term corp bonds, 30% MMF. The rest is mostly physical gold (PHYS), with a tiny bit of silver exposure. I am wondering about starting a small position in oil such as CPG or WCP. My other interest is also Sprott Physical Uranium as I have a tiny position in CCO which also did well. Any thoughts on which one is a better story, Uranium or oil?
5i Research Answer:
Uranium certainly has positive fundamentals and very strong momentum right now. We would side with it, but also would consider it riskier as well in general than energu rigth now. Energy stocks are very cheap, and financial strength is far better than in other cycles. We think a strategy might be to add to CCO, and also initiate some energy holdings for better overall diversification. At this time, we think stocks will have more upside leverage than commodity funds.