Q: Hello 5i Team
I hold these three stock Zdc , png and E in my
RIF account that are about 1.2 % total. With this uncertain market and potential recession would you recommend to sell them for a more defensive stocks.Do they have good potential to recover? I am down on all of them .
Thanks
I hold these three stock Zdc , png and E in my
RIF account that are about 1.2 % total. With this uncertain market and potential recession would you recommend to sell them for a more defensive stocks.Do they have good potential to recover? I am down on all of them .
Thanks
5i Research Answer:
Small caps are risky always, but in an uncertain market they can be extra volatile. But it is important to note that their businesses are not as volatile as their stocks. We would consider 1.2% decently-low enough for little concern in the sector. Of the three, we would be quite comfortable keeping PNG and ZDC, if an investor has a 3 year+ timeframe. E is riskier than the others, in our view, and we have recent comments posted on it here.