-
Suncor Energy Inc. (SU $92.01)
-
Canadian Natural Resources Limited (CNQ $67.86)
-
Tourmaline Oil Corp. (TOU $66.58)
Q: Hi,
If you remove your "long term focus" hat and put on a different hat, is there an opportunity to get out of the energy stocks that have seen their values skyrocket since the war in Iran, and re-enter them once things settle back down?
I know you will say that this is timing the market and we don't know if the prices will settle back down, but isn't there a strong likelihood that prices will not remain at these current levels once shipping and production returns to normal?
Thanks,
Robert
If you remove your "long term focus" hat and put on a different hat, is there an opportunity to get out of the energy stocks that have seen their values skyrocket since the war in Iran, and re-enter them once things settle back down?
I know you will say that this is timing the market and we don't know if the prices will settle back down, but isn't there a strong likelihood that prices will not remain at these current levels once shipping and production returns to normal?
Thanks,
Robert
5i Research Answer:
As noted, timing something like this is the hard part but yes we think there is merit to the idea that once the current tumoil resolves, energy prices will begin to settle lower and will tend to be a bit of a weight on energy names. We would try to 'stick the landing' on something like this through rebalancing over time opposed to an all-in or all-out type of decision.