Investment Q&A

With a cyclical sector predicing the next month is hard, let alone five years. But we would still be comfortable owners of the sector, due to the facts that valuations are very low, and balance sheets are very strong (vs historical other cycles). Most companies are producing very high free cash flow and buying back stock or increasing dividends. The sector has been weak but at some point this will change. We may need to see China grow faster, and the tariff situation is likely not going to help at all, so some patience will be needed. The TSX index is at 16% energy and we think that is too much (10% might be a general suggestion). But we would be comfortable holding the stocks listed, and would be OK adding as well up to a desired position size.