Investment Q&A

Q: If things get real ugly, do we need to worry about cash being held within RRSP with an investment dealer? What type of insurance is typically on these funds? Is it better to have cash with a bank?

Q: Hi,

A general question about a companies responsibility to update investors with respect to their business. Occasionally, companies update the market with respect to upcoming earnings and will 'guide up' or 'guide down' depending on what is happening. In light of the current chaos, it seems to me that now many companies have not updated guidance (I could be wrong, I follow the market generally...). Could you shed some light on to why not many companies have issued guidance updates? Perhaps the situation is so fluid, companies really can't update b/c they can't update with reliable numbers, or they are afraid to (make a terrible situation catastrophic), or...?

Further, are there time frames on issuing updates (X weeks before next quarter, for example) or perhaps requirements for updating if forecasts are going to be massively missed?

I'm basically wondering what to make of the few corporate updates.

Cam

Q: In 2008, short selling was banned. How did markets react after that decision ? I think their was a 20% rally ?
More importantly, do you think this will occur in 2020 ? If so how would markets react in your opinion?

Thanks,

Q: If things get real bad and multiple Investment dealers start potentially going bankrupt, does the Canadian Investor Protection Fund have the means to cover the losses? Would an investor be wiser to take cash and deposit into multiple bank accounts?

Q: Investing in this market:
- You mentioned in a recent answer that one should buy slowly into this market. What constitutes "slow"?
- You mentioned in the same answer that shares down 40% can drop another 40%. Has this ever happened overall in a bear market other than 1929?

Q: With regard to Martin's question about the safety of accounts of over $100k your response was that amounts above this were not guaranteed. My understanding is that the $100k limit applied to bank accounts, which are guaranteed by the Canadian Deposit Insurance Corporation (CDIC). Investment/brokerage accounts, however, are protected by the CIPF (Canadian Investor Protection Fund) up to $1 million. Is that not correct?

Q: Hello team,
This is a general question about metrics and about Microsoft in particular.If you back off cash and debt what is the metric for a P/E ratio with this applied and how does this comparison evaluate Microsoft and its peers.What is this metric called and how does this apply to for example CSU.

Q: I have always thought that "markets hitting all-time highs" is a huge concept that in my opinion the gravitas of which is lost on most. Because, if you have been invested across the market for some length of time, you will be up. And it seems to me it's not that rare to be at all-time highs. So my question is: Can you give some insight into how large the intervals of time are between all-time highs? I mean, generally, markets go up. But say, what's the largest interval between market highs and when was that?

Q: For fun, let’s assume that the markets will be shut down. What would that look like? I assume there would be some warning that they were to close, and that there would then be a lot of selling prior to that. Correct? If they were to close, how long might they close for, and what could we ‘expect’ would happen when they reopened? All very hypothetical, but whatever insights you have would be appreciated.
Also, today I tried to take money out of my personal chequing account, at TD, and they capped withdrawals at $2500 per person, per day. I’ve never had that before. Concerning?
Thank you.

Q: What is the best way to go long on Volatility? What are your thoughts on this?

Q: First and foremost looks like the 5i team is working overtime to keep up with all the questions to ensure us members are not waiting long to get answers. Much appreciated! Compared to 2008 are the governments responding faster this time around and is the play book the same or different this time? Trying to see if all of these measures will have the same benefits as before?

Q: I have noticed in your renewal section you have a$ 179.95 annual membership. In previous years there was often a multiple year subscription price, normally two years.
As well I have numerous question credits, in the event I do not review are these simply erased? Seems this service is escalating as with others but seriously looking at moderating my costs. Any comment?

Q: Good morning guys:
Just like every other investor my stocks in my tfsa are down big time. I have not sold anything as of yet and bought Boyd and MasterCard for my cash account with the recent dip . I know investors should stay the course and not sell quality companies , but just like 2008 it took a long time to get our money back that was lost . That being said is it a better move to sell all my stocks in my tfsa and take the loss . I take the remaining funds and buy quality companies that have been hit big time like a Disney , mastercard , visa , Boyd for example . I presently own 10 stocks in my tfsa and they are all equal weightings. Could you please elaborate what an investor should do in this situation
Thank you for great work .
- mark

Q: Hi,
Could you elaborate on " Implied Price Return" on your companies report.

Best,
Matt

Q: Hi 5,
Could you please tell me what stock symbol I can use on my TD Direct watchlist that indicates the VIX level that I keep reading about on 5i and on BNN?
Thank you

Q: ETFs
- is it correct that net asset value is determined once daily based on the closing price for the day?
- if correct, shouldn't the trading price reflect changes during the day, disregarding the NAV at close of the previous day?
- if the trading price doesn't reflect changes during the day, I suppose, in the case of a big change in underlying securities during the day, one should postpone a trade decision until the NAV for the previous day is published
- when will the NAV for the previous day appear in the quotation services? By open of trading on the following day?

Q: With governments pouring money into businesses, dropping interest rates, Retirees and individual investors getting killed,(mostly by computers and algorithms) everything shutting down why don't they shut down the markets worldwide to stop the insanity and panic? This may seem simplistic but we make rules to protect ourselves in the mortgage market, we need to protect our companies and ourselves from sheer panic.
Mike

Q: It would be very interesting for you guys to comment on market liquidity, and bid/ask dynamics with this market sell off. Specifically; for every sale, there is a buyer, and the sellers and buyers keep transacting. But, perhaps there simply is less buyers and sellers overall, so it is forcing people who want out specifically, to receive a lower price to do so. Is liquidity of bid/ask shrinking in these panic like events? With this point, who are the general sellers in this market; retail, institutions or hedge funds, etc. Are ETFS triggering this selloff etc. I hold a lot of stock, but simply don't want to be the last holder in the game, when the so called passive investments helped create this melt up in the first place. If they are also the first to leave, that may be bad for smaller folks like me. So.... if you come back and say that we have whipsawed lower 20% plus, but in that time, less and less shares are being sold, that may imply that still large smart money is still here, with the same large market participants having faith. Any comments on these points would be helpful. Bill

Q: Hi Team,

In this panic selling who are the big sellers? ETFs, Institutional, pension funds etc and they are moving to cash since bonds are also sold along with stocks. I believe individual stock investors are very small percentage of market. Is there a website which shows etf outflows/inflows.

Keep up the great work.

Thanks

Q: retiring next week and now this happens
i will be totally dependent on dividend income
yes, i should have bond income but i don't
ytd shows:
50% of dividend portfolio is <20%>
50% at <37%>
should i sell <37%> portion to protect portfolio?