Oil Soft But When it Runs it Runs

Good day,

After a great rally in oil prices and energy stocks last year, both the commodity and oil and gas companies have been somewhat disappointing this year to date. While many are still feeling the pain from the 2014/2015 oil crash, the sector’s volatility and cyclical nature has been witnessed over many decades. We’ve taken advantage of the rally in 2016 and despite the recent stall, we remain bullish on both the commodity and mid to large capitalization producers and services companies.

One of the items which has caused recent selling in Canadian energy stocks is Paul Ryan’s proposed Border Tax Plan. The plan has had a lot of opposition to the point where Bloomberg has suggested Paul Ryan’s plan is on “life support”. When oil and gas stocks rally, they tend to do so quickly over a short period of time. The mid cap space tends to see even larger swings and we await the next leg up.

I’ve attached Bloomberg’s article* below.

https://www.bloomberg.com/politics/articles/2017-02-17/ryan-makes-emphatic-plea-for-tax-plan-seen-on-life-support

Enjoy your weekend.

Danny

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Daniel Popescu CFP, CIM, FMA, FCSI
President & CEO

MNP Tower, 3100-1021 West Hastings St.
Vancouver, BC V6E 0C3
T: 604-558-6830/1(877) 588-6822
F: 604-558-6823
harbourfrontwealth.com

 

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