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  5. CCO: What percentage of one's portfolio do you recommend to put into cyclical stocks, for someone with moderately high risk tolerance and 30+ years to invest? [Cameco Corporation]
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Q: What percentage of one's portfolio do you recommend to put into cyclical stocks, for someone with moderately high risk tolerance and 30+ years to invest? Why?
Asked by Connie on July 24, 2025
5i Research Answer:

We might target 10%. Typically, the sector is highly volatile, so while long term compounding over can still occur over 30 years, other sectors with less cyclicality have more potential over such a long time. Many cylical stocks also do not pay dividends, or pay highly variable dividends, with cuts/omissions during down cycles. A 10% position can easily swing to 15% in an up cycle, and this would allow investors to trim back to 10% for the down cycle.