When analyzing energy stocks, look beyond valuations and volatility.
The energy sector is the largest small-cap sector in Canada.
Stronger demand and a more competitive loonie lifted Canada's exports in the second quarter of 2014, elevating overall economic growth from weather-related weakness early in the year. This trend is expected to continue, according to the latest Economic and Financial Market Outlook by RBC Economics.
Productivity, capital decisions and difficulty getting the social license to operate are the top three risks facing miners this year.
Oil and gas stocks are propping up the Canadian market.
In 2014, the energy, mining and utilities sector is driving M&A activity.
As cheer over energy stocks’ rally gives way to unease over valuations, retreating oil prices are prompting some investors to step away from the sector.
Virtually every day some new investment product, economic issue or financial woe makes the lineup on the evening news, the front page of the paper or the latest issue of a trusted magazine. The result: Clients are literally bombarded with information — creating, for many, a state of fear and confusion.