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Bullboard - Stock Discussion Forum Suncor Energy Inc T.SU

Alternate Symbol(s):  SU

Suncor Energy Inc. is a Canada-based integrated energy company. The Company's segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing. Its operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the United States; and the Company’s Petro-Canada retail and wholesale distribution networks... see more

TSX:SU - Post Discussion

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Post by marketsense on Jun 01, 2023 10:19pm

Risk

First I can't figure out why my pc( its a MAC) is locked on enlarged lettering and long
indentation whenever I type a post.  I have to manually adjust it each time to format
it in one line small print paragraphs.  Very annoying and sometimes I forget.  When typing its normal but when posting it goes into some previous locked mode.  Weird.

My post tonight really is dealing with market risk.  I am still long on one oil position
but I can't see staying in for much longer.  Experience has covered this in his posts
but it bears repeating if I understood his reasoning correctly.

If we go into a recession,  int rates will drop but I'm wondering about int rates rising
and then being sustained at higher levels.  With the amount of Fed and consumer debt,  higher rates will bring on bankruptcies as well as consume more gov't revenue andsubtract from GDP on the Federal level.  In either case its seems a difficult environment to sustain high oil prices.  Low int rates because of a recession versus high int rates because of liquidity issues over massive treasury offerings that are going to flood the system.  None of these options are market friendly.  It isn't going to be oil friendly either.  So I'm building up cash for safety but not sure yet what to do with it.
Comment by Experienced on Jun 02, 2023 7:44am
Marketsense - YEP As I mentioned in my earlier post, if the recession is severe enough, Central Banks will have no choice but to lower rates to pull out of the tailspin.  After all, one of the principal reasons the very rich set up the Fed in the first place was to protect their interests and get richer through increasing the amplitude of normal economic cycles.  In this scenario of ...more  
Comment by Torontojay on Jun 02, 2023 1:21pm
I agree with your points Experienced but I'd like to add another comment. I believe interest rates will fall well below  2% as they did in the dotcom and GFC recession. I think this will happen in 2024.  The structural trends is that inflation at 2% could be a thing of the past. This is going to take time and won't happen overnight.  More and more countries want to be ...more  
Comment by Konaboy on Jun 03, 2023 9:08pm
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