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Hemisphere Energy Corporation (HME $2.72)
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Canadian Natural Resources Limited (CNQ $63.14)
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Whitecap Resources Inc. (WCP $14.43)
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Enbridge Inc. 5.50% Cumulative Redeemable Preferred Shares Series A (ENB.PR.A $24.45)
Q: I’m currently holding Enbridge, CNQ, HME, and Whitecap, and I’m sitting on attractive gains. Given today’s market environment — including oil price volatility, sector valuations, and shifting interest rate expectations — I’d like your guidance on whether it makes sense to start taking profits. My risk tolerance is medium to high, so I’m comfortable with some volatility, but I still want a disciplined approach. Should we be trimming these positions into strength, using trailing stops, or rebalancing to manage my energy exposure? I’d appreciate your view on the most appropriate profit‑taking strategy for my situation.
Thanks for your help. Rick
Thanks for your help. Rick
5i Research Answer:
The run-up in energy names has been swift, and we think that some rebalancing can make sense here given the quick run-up in prices. Although we continue to like the energy space as a hedge against the potential for further geopolitical events, these names are showing both positive momentum, and they can act as a defensive play against declining tech or growth stocks. We would be comfortable rebalancing to a 'sleep-well-at-night' level, while also maintaining exposure as a defensive play/hedge.