Investment Q&A

Q: Good day! I am slightly off topic but have a comment & question. I think the your chart attack is a nice addition. Thank You.
My question is with the February Chart attack. Looking at the chart for "House price to income", I noticed that Canada, as you mentioned alongside New Zealand, is the most expensive place to live per dollar of income earned. What surprises me is that I was expecting this to be the result of the crazy real estate price increases during the last year but looking at the chart, the amount of income earned to buy a house has been pretty stable in Canada for the last 4-5 years. The year 2020 (which some of us call a bubble) has not changed this important metric. Our new inflated house prices are equally expensive today as they were 4-5 years ago. If yes, there has been no real increase in real estate prices as a % of household income which is definitely not what I expected. Am I reading this correctly? Any comments? As a secondary question on same topic, I thought the US real estate market also shot up but does not appear to be reflective here (or not as much of an issue)?? Is there really a bubble going on?
Thanks.

Q: Got to thank Dan for the reading suggestion...turns out David Dreman has a recent book online "Psychology of Money" at https://pdf.pdfread.net/dl/viewer.html?file=https://pdf.pdfread.net/titleauthor/The%20Psychology%20of%20Money%20Timeless%20Lessons%20on%20Wealth%20Greed%20and%20Happiness%20By%20Morgan%20Housel-pdfread.net.pdf#page=6&zoom=auto,-19,744    It's a good read about Luck and Risk, and more.......Tom

Q: Hi, I was wondering if you could explain inflation and the impact on the economy and companies? Why the US is seeing inflation with the pandemic affecting businesses and jobs. I thought inflation meant growth in the economy. Is this current inflation numbers a blip or expected to last a few years? Do I follow the trend of sector rotation?
Thanks

Q: Hi. I have a question about the target price set out in the company profiles on 5i. Take Karora Resources, for instance: The current target price is between a high of $6.00 and a low of $5.85. I assume this means that analysts think the share price should go to that level. (Actually, am I even correct in that assumption?) What I can't figure out is what is the timeframe for the target price? In other words, when is it thought that KRR shares will hit the $5.85 - $6.00 range?

Q: Do you know of any Canadian discount brokerage firm that let you buy U.S stocks pre market or after market. Im at BMO and only way to do it is to be placed on hold for for 45 minutes.

Q: Think I had asked this before but can't find the answer. To cover a Margin Call do I sell Winners or Losers?
Thanks. Austin

Q: There's a really good new book out on investment psychology, by Morgan Housel, called, "The Psychology of Money." His writing style is very accessible.

Q: What are the advantages or disadvantages in buying an ETF with a CDN hedge tilt ? When would you do it and when would you not do it ?

Q: In answer to Dan's question about "light" reading on the topic of Investment psychology, might I also suggest David Dreman's "Psychology and the Stock Market: Investment Strategy Beyond Random Walk." For the subject, I found it fairly accessible.

Q: Is there any light reading you can suggest on the topic of Investment psychology? Thanks.

Q: Morning 5i,

Some time ago you recommended a podcast called Invest 'Like the Best', which has been great, thanks for that. One of Patrick's recent guests is Jeremy Grantham who outlines a case for the current market being in late stage bubble territory. Do you have the same feeling? Any advice as to some defensive plays prudent investors should take other than taking some profit off the table or going to a slightly higher percentage cash to be prepared to take advantage of a downturn? Are you recommending any examples of securities which have done well in such situations?

Thanks,

Dan

Q: Hi Peter/Ryan, do you have some book recommendations for Growth/GARP investing? Thanks in advance.

Q: Your thoughts on the pro's and con's between individual stocks and etf's

Q: Is the US dollar still considered as strong a safe-haven currency as in previous years? If yes, is there typically a correlation between it rising along with the VIX? I have been surprised at the level the US dollar has dropped over the past year.
Thanks, Cathy

Q: Hi 5i,
I know you guys are long term investors and don’t like trading around earnings, but it seems to me that most tech stocks are priced to perfection these days and they can have great earnings calls and yet the stock sells off. Recent examples are NVDA, ROKU, TTD, SQ and SHOP (although SHOP announced a financing as well). For new positions, aren’t the odds in your favour to wait until after earnings to buy? Similarly, if one is overweight on a position, again it seems to me that the odds are in your favour to trim back prior to earnings. What are your thoughts on this approach?
Thanks again.
Dave

Q: Why would DND currently trading at such a low price below its bought deal price of $50.50 (say around $43 at this moment, or a 15% discount)? What would the underwriters do to "salvage" this deal?

Thanks

Q: It appears that the sale of People to Goldman Sachs was approved and finalized as of Feb 18, 2021. The shares have disappeared from my account now but no money has been put in. When should we expect to get the money?

Appreciate your insight.

Paul F.

Q: Hello

Our US holdings are up 36.25%, where as our Canadian holdings are only up 17.22%.
The five mentioned above are our only real shining stars at this point.
Is one better to have all US holdings and forget Canada?
Thank you
Mike

Q: Hi Peter,
from your article in the Financial Post, could you elaborate on the effects of inflation or deflation on a portfolio?
Thank you.

Q: What is your preferred strategy, if you believe there will be a 20% + correction in the next 3 months?
1. just ride it out, knowing it will come back over time
2. sell 30 - 50% of the portfolio (riskiest stocks) and raise cash to re-deploy when prices are lower
3. sell 30 - 50% and replace with less market correlated assets
4. sell 20 - 30% and hedge with puts or inverse ETF's.