Q: Good Morning,
I have several energy infrastructure holdings but no actual producers.
Do you think now (read Trump) would be a good time to purchase on the production side?
I was thinking SU or CNQ.
Are there others you would favour - energy or otherwise.
I am an income investor.
Thanks very much.
I have several energy infrastructure holdings but no actual producers.
Do you think now (read Trump) would be a good time to purchase on the production side?
I was thinking SU or CNQ.
Are there others you would favour - energy or otherwise.
I am an income investor.
Thanks very much.
5i Research Answer:
The energy sector has risks, but prices are set globally. If the US produces more, prices could be impacted. But this will not happen instantly, and there will be a new president in four years. Essentially, valuations are so low right now that we think a lot of risks are priced in. We would be very comfortable buying CNQ and SU. TOU could be suggested for a 'gas' stock.