This past week, we added Crescent Point Energy to the Model Oil Portfolio. Although there are an increasing number of market-watchers that are extolling the Canadian energy sector for being under-valued, it has been for quite some time and it could stay that way for quite some time to come. By its very nature, the sector will always be volatile, so picking and choosing stocks and the getting the timing right for buying those stocks will always be a challenging task for an energy portfolio such as ours. Ever since we put this portfolio together on June 3, the portfolio has been “under water”. Some of the stocks are well below our chosen “Sell Prices”, but maybe we are not being realistic in setting those Sell Prices when they are associated with such a volatile group. All of the companies chosen for the portfolio are quality companies with distinguished management, but even they must contend with a myriad of global geopolitical cross-winds that can have a profound effect on the world’s energy market.
Currently, the Portfolio is down 2.6%. For comparison the S&P/TSX Energy Index is down 4.6%, the price of crude oil is up 3.8%, and the crude oil daily bull 2X ETF (TSX: HOU) is up 3.3%.
You can access this week’s Model Oil Portfolio here … … ModelOil071919
