Why it’s time for Canadian investors to diversify

Energy stocks and, by extension, our petro dollar are at the mercy of a possibly brutal final down leg in the price of crude.

Whether to continue stubbornly sticking to a seemingly ingrained home bias when investing depends in no small part on creating a call that oil prices have bottomed out.

If it isn’t by now abundantly clear, let’s spell it out: while the Canadian energy sector’s performance during the first quarter has at the moment put an end to the precipitous decline it\’s sustained since last summer, a lot of companies have announced significant budget reductions, dividend cuts and/or raised equity.

Oil inventories go nowhere but up, and production cuts don’t appear to have materialized to satisfactorily address the demand/supply imbalance.

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