Bill’s Blog | March 16, 2023

With so much going on in the world and its impact on your wealth and investments, it is more than ever essential to educate yourself and understand trends and opportunities. Just think about what has transpired in the last week.

• The second-largest bank default in US history happen last Friday (Silicon Valley Bank), and Signature Bank (3rd Largest failure) on the weekend and bank runs.
• Several other banks in the US are also in trouble, and there is fear of contagion (this may be a repeat of 2007 to 2009). Also, one of the largest banks in Switzerland is collapsing Credit Suisse.
• Massive bailout once again by FED, US Treasury & FDIC. Taxpayers are again on the hook for incompetent bankers who take on too much risk! 
• Yet another scandal in Ottawa with our Prime Minister/Liberals and NDP (Communist China’s known interference in our elections and cover-up)
• As reported last week, Canadians are paying 45% more interest than a year ago, the fastest rate increase in 30 years.
• Inflation is still high and very sticky, as I and others have forecast.

As I have mentioned several times in my Blogs, this is not the time to be complacent with your finances. Instead, one needs to be alert and proactive, adjust one’s portfolio, and take advantage of new opportunities. Over a dozen times in the last year, I have heard from astute portfolio managers that the buy-and-hold or passively managed funds strategy is dead. Why? Our world shifted last year on multiple fronts: 40-year high inflation, rapid interest rate hikes, we entered a bear market, the sanction disaster, the Petrodollar breakdown, war, the energy and food crisis, UK pension collapse, to name just a few! Our world changed in 2022, and things continue to accelerate and shift. But let us look at a possible solution and a way to diversify.

So today, I want to focus on one asset class I believe may do very well in the foreseeable future: energy, oil and gas and related service companies. I am not suggesting today or next week or two, but based on solid supply and demand evidence, I firmly believe energy will be much higher by year’s end. So here is another veteran and respected oil writer (Irina Slav) analysis for 2023.

Oil Prices Are Set To Rise Throughout 2023

By Irina Slav – March 07, 2023, 7:00 PM CST

• Rising Chinese demand will be the primary driver of higher crude prices this year.
• A 500,000 bpd drop in Russian crude output could tip the balance in global oil markets.
• IEA: global oil demand will hit a record high in 2023.

My thoughts after listening to several energy experts. It is possible to see oil at $90 to $100 a barrel by year’s end based on primary supply & demand issues, and if we see a further escalation of war or wars, oil can quickly spike to $150 to $200 per barrel. So in the short term, there is a strong possibility of a further correction in oil prices (early springtime). But on the other hand, a pullback in oil can provide an excellent entry point for quality energy stocks (Josef’s expertise) or energy funds. 

When I make changes to my portfolio, I do significant research, and I always like to get confirmation from multiple sources with proven track records. Of course, research does not guarantee 100% success, but it increases your probability. I encourage you to do the same and do your homework. So this weekend, I invite you to join me, James Longstreet (Fivefold Wealth Management), his clients/guests, and one of Canada’s top energy experts, Josef Schachter.  

Please join us on March 18 at 10 AM PST (45-minute webinar with Q&A to follow. Josef Schachter has over 40 years of experience in the financial markets as a top analyst. Josef is a regular BNN energy analyst, and recently he was a keynote speaker at the World Outlook Conference in Vancouver, BC. Josef will share in this presentation why he believes we have entered a New Energy Supercycle and will share some possible opportunities in the Canadian energy space. 

Please register for this event:

When: March 18, 2023, 10:00 AM Vancouver 

Topic: Join Josef Schachter (Energy Expert) as he discusses the New Energy Supercycle and Opportunities.

Register in advance for this webinar:

https://us06web.zoom.us/webinar/register/WN_LJtUBtrfQ-qo5mBE6TMqcA

After registering, you will receive a confirmation email containing information about joining the webinar.

PS, I am taking next week off, but I will provide my first quarter review and thoughts for the coming quarter at the end of March. So, stay tuned.

All the best in 2023,

Bill Westmacott, Owner

fivefoldfinancial.ca