Regular or Supreme?

An older gentleman stands at the gas pumps, staring at the prices on the sign. The attendant asks over the microphone “Regular or Supreme?”. He replies, “No thanks, just looking.”

It’s a scene that captures the reality many people are feeling today.

The U.S. Strategic Petroleum Reserve has reportedly fallen to its lowest level since 1982, while executives from some of the world’s largest energy companies continue to warn of a looming energy crisis. At the same time, geopolitical tensions remain elevated. Ukraine has continued targeting Russian refining capacity, while Iran-backed disruptions in the Middle East and threats to shipping through the Strait of Hormuz add further uncertainty to global energy markets.

Fuel costs remain a major driver of inflation, and there is no guarantee we have seen the peak in prices. What was expected by many to be a quick military operation has now stretched deep into another month. In this kind of environment, everything stays on the table.

Energy companies are generating substantial cash flow and, in many cases, are supported by strong fundamentals. I believe these are the types of areas where we should be prepared to participate when opportunities arise.

In previous updates, I’ve spoken about the importance of owning real assets — the kind that, if dropped on your toe, would hurt. A barrel of oil fits that description. In a world of rising prices, persistent inflation, and ongoing financial engineering, I want the portfolio tilted toward wealth protection, not wild speculation.

That said, I’m also mindful that ongoing negotiations or a shift in geopolitical sentiment could change the outlook for this trade quickly. That is why we continue to use stop-loss discipline within the process to help limit downside risk as we allocate toward relative value opportunities.

That is the process: remain flexible, protect capital first, and pursue opportunity where the risk/reward is favorable

Quarterly performance reporting

Performance reporting is made available on a quarterly basis. Please click the following link to view the latest audited report: Tactical Growth Fact Sheet.

To view your accounts online, the login portal can be accessed on the Priddle & Sheppard Investment Group Team Website or on the CIBC Wealth App.

At CIBC Private Wealth, we take a comprehensive approach to building and protecting your wealth. If you would like to discuss the Tactical Growth Mandate or have questions about your investments, please contact me at any time.

Thank you for reading, and I look forward to hearing from you.

Our purpose: To help make your ambition a reality

Priddle & Sheppard Investment Group