Q: Oil and Gas is approximately 7% of my overall portfolio. Given the recent pullback in Oil and Gas stocks, would you consider this a good time to add to a number of positions? I am looking at adding to CVE, TVE and BTE.
5i Research Answer:
We have recently posted comments on BTE, and will have more comments on TVE today. Sentiment has shifted in the sector, as the price of oil has clearly not done what was expected, what with two wars still ongoing. That being said, valuations are low and balance sheets in the sector are very strong, and we would be OK with some accumulation buying right now, assuming an investor is comfortable with their own sector weighting.