Investment Q&A

Q: Hi, I trust you folks at 5i are well and in high spirits? I have incorporated the Growth Porfolio as part of my TFSA. Here is the thought. If the market were to suffer a substantial correction; say the TSX tanks 20%, how much will the Growth Porfolio likely to fall by? I don't know what the average beta of the Porfolio is, but I guess it might be north of 1.5 but are there any mitigating factors, say people will take the opportunity to pile into some of the constituents or will everything just drop like in 2008? Thanks as always. henry

Q: Hello Peter & Co,
(1) On your summary table you indicate a start price for each security. If you also indicate a start date, we would have an idea of timeline.
(2) Big Correction: The Tech bubble and the 2008 downturn were both preceded (a few months earlier) by the flattening (even reversion) of the yield curve....we're nowhere near that as the yield curve is fairly steep.
(3) Sector allocation: If I only held the winners (like someone suggested), I would hold NO Energy; but that would not be wise, as you said. I reduced the Energy content last fall to 4% of my portfolio to energy producers (TOU,VET and WCP) and 6% to energy infrastructure (ENB,IPL,KEY and PPL).
For your Info
Thanks,
Antoine

Q: Your link that you posted in my previous question on sector allocations and definitions (http://www.sectorspdr.com/sectorspdr/tools/portfolio-builder) explained things perfectly to me. I would recommend this site you referred me to highly as an educational tool. I also wanted to say thank you again for creating and managing this forum. I tell everyone I know about the great work you do here: I will definitely be renewing my membership.

Q: Hello 5i,


I need help in finding a good stock tracking software, one that considers different currencies and dividends also, as they are included in my portfolio. Is there software available specifically for this purpose. I do not need one with budgeting and all that other stuff. Your help will be much appreciated.


Thanks,

Q: It seems every time I turn on BNN, I hear some pundit spouting baseball analogies: as consensus goes, we are apparently in the 9th inning of a bull market, maybe even the bottom of the 9th. A few managers have commented that we're batting into extra innings and that a correction is long overdue. What does all this mean, in real terms?

It seemed to me we had a correction in October -- my portfolio took a good 10% hit, and although I've recovered nicely, and have even outstripped what my "pre-correction" gains were, it seems I can't differentiate from a "correction" (with a small "c") as opposed to THE CORRECTION, (all caps). Pardon the cheekiness, but ... really ... !? they leave themselves open to such interpretation.

I would dearly love to hear from Peter what his take is on all this correcting that's going to be happening. Should I shore myself up now, before the flood hits?

In 2008-09, I was not fully invested, and so never took the hit that many of my colleagues and friends did, simply because I had a lot in cash, so I have no personal experience on what it feels like to be corrected.

Thanks, as always, for your advice.

Q: What are the Stocks (companies) that have given special or extra dividends (other than their regular dividends) and how many times and how much in the last two years?

Q: Hi,
Great appearance on bnn!!
For a portfolio management approach I understand the importance of setting position limits being 5%, 10% and trimming positions if they breach a limit. However, holding a company for years can result in a position being 20% of a portfolio etc.
What argument can you make to sell or trim positions in a good company that pays a dividend of 4%+ but would be too large of a weighting your intended position limits.
Bottom line question: I know some people have a certain great stock that might be 20%+ in their portfolio. Those are difficult to sell/trim when they pay a nice dividend too.
Thanks

Q: Could I get your opinion on these types of products? The idea is to prepare for the next correction or bear market, or is it better to just buy GICs? These ETF products seem very complicated and returns have not been that great.

Q: Is there any reason you know of that has caused the upward move of this stock today. Thanks.

Q: Dear Agent.Is it possible for me to get a copy of your Model Portfolio. Eddie.

Q: Is there a site that gives accurate PEG ratios on a forward earnings basis? Thanks for your help

Q: Is there any site where I can access accurate PEG ratios based on forward earnings?Thanks

Q: Hi Peter, I'm just starting out with a view to manage the bulk of my portfolio myself. I would like to take advantage of the stronger returns in the US market, and thought I would allocate about a third to this market. What are your thoughts?With a 3-5 year view, I am wondering whether the loonie will be stronger by then and as a result, I could realize a currency loss - the loonie couldn't get much weaker it seems, and will surely rebound by then, or is this the new "normal"? I'm guessing most people believe the potential of the US economy vs the Cdn, more than outweighs the possibility for future currency losses, correct? I also would like to know whether most people put in stops, or not - what is the general strategy bebind doing this, putting them in near purchase price or well beneath it. Do stop positions have priority in the queue ahead of on the day sellers? Thanks, Kristine.

Q: Would you recommend a few stocks or ETF's for Long term hold. My daughter has just started investing and only has $5000 in an RRSP to work without this time.

Thanks for your great advice.

Q: How does your team evaluate the Big Banks Private portfolio wealth management? Is this a valid method of investing for an older investor who wants little future input? Do you know how these various management teams are rated?

Thanks for your insight.

Q: Hi Peter,
I was wondering if you had a simple explanation for market activity on days like this. If we believe Bloomberg, it seems that some slightly better economic news has prompted this sudden plunge in the market on fears of rate hikes. I'm trying to understand why this would cause anyone to sell, and what exactly they expect to happen? Do people sell all their stocks and then decide to just wait however many months it will take for a quarter percent rate hike to get back into the market? Is there some kind of expected gain here? Its not like the likelihood of rate hikes ought to be any kind of surprise anyway, so why are people pressing sell on everything?

Q: I'm helping my retiring parents clean-up/rebalance their portfolio. This is a two-part question that's related.

i) How important is it to compare their portfolio's performance to a benchmark?
ii) If i) is important, which funds/etfs can serve as a good benchmark considering their desire to generate a 3.5% dividend in a balanced portfolio?

Q: following article discusses recent portfolio changes made by the Direxion iBillionaire Index ETF.

Please post this if you feel it is worthy...

http://www.benzinga.com/general/biotech/15/05/5532607/billionaire-tracking-etf-just-bulked-up-on-health-care

Q: Hello: I saw a web link which provided a convincing analysis of the risk of holding 1 stock vs the index. I think it would make an interesting addition to your "Weekly web sites collection"

http://blog.alphaarchitect.com/2015/05/21/the-risks-of-owning-an-individual-stock/

Ernie

Q: Hi to all at 5iResearch

I am a new member since April 2015
I have made a few buy base on your informations
but sometime I am not completly sure that i use your information the right way
for exemple the stock that you cover and rate a stock to qualify has a buy would have to be rated at minimum B