An overwhelming majority of Canadians, owners of the world’s second largest oil deposit, are reluctant to buy stocks in oil companies, according to a new survey.
Overall, only one-in-five of us would invest in oil companies if we had the money, a poll for Edward Jones has found.
The number is somewhat higher in Calgary where 40% said they would put their cash in oil.
Quebecers are least likely to invest, with only one-in-10 willing to do it.
The reluctance comes despite the fact that demand for crude is growing rapidly, especially in emerging economies such as China and India. And crude from Alberta’s oilsands now makes up half of U.S. supply.
Energy and utilities analyst at Edward Jones Lanny Pendill says attractive stock prices should make the sector attractive for investors.
“While oil companies have been dominating headlines as of late – both with good news and bad – we urge investors not to chase the news of the day,” says Lanny Pendill, senior analyst, Energy & Utilities, Edward Jones.
Pendill suggests having 15% of an investment portfolio weighed in energy stocks, including oil, natural gas, drilling and exploration companies.
Poll results are based on a telephone survey of 1,023 nationally representative adults between July 22 and 25 by Harris/Decima. A sample of this size will provide results that can be considered accurate within plus or minus 3.1%, 19 times out of 20.
