Investment Q&A

Q: There has been a lot of chatter lately about the move to value over growth in stock selection. I am afraid that I don't feel this urge but as I've known myself to be regularly late to the best parties I could use some help ion reasoning this out. Where do stand on the idea and if in the growth camp could you outline the value camp reasoning?

TIA

Q: Could you tell me why utility and pipeline stocks don't like higher interest rate situations. Every thing I hear on BNN etc. seems to be under the impression that when higher interest rates start these stocks will do poorly. Why?

Thank you

Q: This is in response to Kyle's question.
Go to Financialpost.com and click on Market Data. Then on the left
click on Highs and Lows. Here you will see the list for the previous
business day.

Check the list of highs (noting volume) regularly. You will get a
feel of what is moving, especially on "up" days.

I note the ones that interest me, then check the iYr. charts on
Globeinvestor.com using 50 and 200day moving averages. (Check the
5Yr. charts also.)

I then go to 5i under "Member Questions" for their opinion.
Keep a list of your likes on the Globe's "Stockwatch".

Listening to MarketCall on BNN is also helpful, and over time you
will find which Manager's style of investing you like.

Please post this only if you agree.

Q: Good morning 5 I!

This is just a comment, and a note of thanks. There's an excellent article on the Motley Fool website, by Morgan Housel, on The Wrong Way to Pay for Financial Advice (April 23).

It occurred to me that all 5I subscribers should be smiling all the way to the bank, given the fees that are potentially charged, against 5I subscriber fees. As a noted interest, there is also no comparison between 5 I and the Big Money Managers: quite simply, 5 I is better!

Here's the link: I think people might find it interesting

http://www.fool.ca/2014/04/23/the-wrong-way-to-pay-for-financial-advice/

Thanks for being there.

Q: For someone retired, age 60, no debt, no pension other than Gov't, and capital of 1.5 million, what would be your recommended asset allocation between cash, bonds, stocks etc and which, if any, of your recommended portfolios (or both as the case may be) would be appropriate in the equation. Thanks as always.

Q: Where to park cash in my trading accounts? I find myself holding large amounts of cash in my trading accounts waiting for a market pull back that hasn't really happened! This cash sits "not invested" Do you have any suggestions on where I could park this cash inside my trading accounts that's flexible for trading while earning income? I love the 5I concept and I have done very well following the 5I recommendations, thanks.

Q: Hello- is there a way to see a list of earnings estimate revisions (up or down)on a daily basis?
thanks

Q: Hi Peter and the 5i team,

I was wondering what your thoughts are on Home Bias and the ideal allocation to Canadian equities? A typical couch potato strategy evenly allocates 1/3rd to Canada, US, and International. Some prefer an even higher weighting to Canadian equities.

In July 2013, Mawer introduced a Global Balanced Fund (http://www.mawer.com/knowledge-centre/mawer-blog/the-evolution-behind-the-mawer-global-balanced-fund/) with a 2.70% weight to Canadian equities because they're "not convinced Canadian equities should dominate the equity portion."

I realize having a higher weight to Canada might lower some risk (ie. currency risk, familiarity with Canadian companies) but when we look at managing long-term risk and growth in a portfolio, does it still make sense to weight Canada at 1/3rd in your porfolio?

Thanks again,
Arneh

Q: Hi 5i Great article by Ryan Modesto,I think every investor should read this article and the next time they go to look at their portfolio read Ryans article first then look at the portfolio then read his article again ( good peace of mind )
Thx 5i for good solid advice

Q: Good Morning Peter -- and all the 5 I team as well!

I have a general question about how "not" to time the market, and how to exercise the better part of wisdom if one is interested in growth over present dividend yield.

For instance, ... if one holds a fairly decent company, but its sector happens to be out of favour at this time, and hence the stock price is flat lining, or even reversing, would it make sense to pull out that money and re-deploy it into other sectors that are favourable and ride another sector wave for a time -- or is it better to stand and hold, through good times and bad.

It seems counter-intuitive to me to watch dollars erode while other sectors revive and feeling helpless not to participate because cash is already tied up. I see the logic of a long term hold, in one sense, if someone has many years to spend in the investment market. But, in a shorter term context, for instance two years or less, is there any proven statistic that says you're better off standing your ground?

In one general example, as I watch profits erode from the Tech sector while the Energy sector takes fire, is there any point in holding on to tech companies that are flat lining?

In general, I think I know what your answer would be in terms of overall investment strategies. And yet, I still wonder, what your strategy would be as a portfolio manager. Would you hold, through thick and thin, or would you re-assess and re-allocate as each sector takes favour especially given a shorter term horizon?

As ever, I appreciate your thoughts and opinions, as they have guided me very well through thick and thin. Even before the days of signing up to this newsletter, which is coming up to my 6-month anniversary with 5I, I garnered great wisdom and opportunities through watching you on BNN -- ACQ being only one of many opportunities that you led me to! I always listen closely to what you say. Thanks.

Q: Stocks move after earnings based on what the revenue and earnings are relative to the consensus of what the analysts thought they were going to be. How do we find out before the facts what that consensus is?

Q: Peter what happen4ed to the TSX at the close Down 268 at 4:00?

Stan

Q: I followed Danielle Park's blog " Juggling Dynamite " for the last 5 years. On April 17 she posted: " so Q 1 earnings and revenue numbers are ugly with 1/3 of S&P companies missing earnings targets and 51% have so far missed their sales forecasts."
Are you familiar with Danielle? For the past 2 years I have been 50% in cash in my investment account waiting for the big correction that she professes must come to end the cyclical bear market. I regret missing the gains of the past 2 years, but at the same time I am fearful of the pending correction < if I only knew when >. What does one do in this situation? Please comment, thank you.

Q: should i have stoploss's on my stocks and what percentage. thanku

Q: Hi! I have a question on how to purchase low volume stocks. They often exhibit substantial differences between the Bid and Ask price. For eg, buying 1500 shares of DSG today at the market price would have given me an immediate "loss" of $210 v. the Bid price. Is there a way of avoiding this, perhaps by entering a Limit price? I'm not sure what that price should be in relation to the Bid/Ask. Comments please!

Q: This is in response to Ronald's question re: an earnings calendar source. Both Scotia iTrade and TD Waterhouse (I'm sure others offer them as well) have a research/quotes tab within the account. Click the tab and a calendar with expected earnings releases, dividend issues, stock splits etc. will come up.

Q: I am unable in finding a website that provides earnings calendar for TSE stocks, can you help? Thank you for your response.

Q: I need some advice. I maximize a company managed RRSP program because the co matches my contributions however the manager (Mutual Life in this case) only offers expensive mutual funds. I also invest in RESP's however I've been told the RESP won't allow equities, ETF, etc so I am stuck with expensive mutual funds again. Do I just leave the company plan and take my cash tot he open market? Do I quit the RESP think and do the same? What advice do you have??

Q: Hi Peter.

Came across this great essay you recently penned that I found on the Vitess web site. Thought other members would enjoy!

http://www.vitess.com/2014/03/cash-drugs-etc-not-appropriate/

Keep up the great work and good luck with your training this summer!

Cheers,

Scott

Q: Regarding portfolio weightings: The Globe and Mail portfolio will tell you what % of your portfolio any given stock is. Entering all stocks with your buys and sells into one portfolio will give you the %s across all accounts, but sector weighting is not available. Still, not bad for a free service.