Investment Q&A

Q: Hi,

I have a diversified portfolio consisting with the majority of my money being in etfs: XIU, XEI, VTI and VXUS

I use a spreadsheet to calculate my sector allocation.

At this present moment in the macroeconomic cycle, should I be equally weighted across the 12 sectors ?

If not, in which sectors should I be under and over weighted respectively ?

Q: I have about $60,000 to invest in your balanced portfolio. Invest now or wait until after the US election? Do I buy at equal weight for each company or at the percentage you now have?
Thank you
Jean

Q: Given the global macroeconomic conditions and low interest rate environment, what do you think is a reasonable return of return to expect from the Canadian and US stock markets for the next five years?
Peter

Q: What are your thoughts on HBG ETF(Hamilton Capital Global Bank ETF). Do you recommend any other similar ETF since this is new ETF.

Q: Hi Team,

Can you please comment on the strengths and weaknesses of TIP - iShares Barclays TIPS Bond Fund (ETF). It seems to be performing well this year so far.

Is it a good substitute for buying and holding bonds directly in a self-managed bond ladder?

Thank you. Michael

Q: One more question regarding asset allocation in my RRIF-- how would you rate a 50/50 split of XBB and CBO as the bond component? Given all other factors remain the same. Thank you!
PS - loved the question "what makes 5i so great?"
You provide fabulous service and take some of the angst and mystery out of investing.

Q: Hi you recommended VGK as part of our portfolio review. What is you opinion now with regard to the results of Brexit vote.

Q: Hi folks
Two questions.
I have held both these for some time in my wife's LIRA account. She can not access this for about 12 years, so a long term hold is very possible. Have held these for a couple years. Both are down about 10%, I have held on because I see the ETF as a long term play on our aging population, and ACHN (hopefully you have a little info with this) as a risky but likely takeout target down the road. I have trimmed this one down and made a bit of $ in another account with it, so it isn't as bad as it looks.
Looking back, which is always easy, there are better options, however I am in now and wondering if I should stay the course.
Don't mind volatility, actually kind of drawn to it. Any thoughts?
Excellent job btw, your cheap at twice the price!
Cheers ;)

Q: I did my Brexit Wed. and plan on staying about 50% cash untill after the US election. Would like some ETF's that pay a relatively safe div. Thanks Al

Q: Per BNN,it is a frustrated reaction to slow economic despite stimulus in the form oflow interest rate.People are angry over rising inequality & are anti-globalization,anti-immigrant & anti- elite. There are 4 last ditch efforts that could stop Brexit.the referendum is not legal binding & UK parliament(majority of MPs are on remain side) can vote against Brexit.3mil had signed a re-do referendum which will required Parliament to debate.Eu concessions as to immigration.Unlikely.Scotland & N.Ireland will veto decision of Brexit. As of today Parliament still has not triggered the process, Appreciate 5I blog of 6/24.Positive reaction from Asian markets,US futures,Oil & British pound tonight.Hopefully,N American & Euopean markets will be ok tomorrow

Q: Hello I just read your comments on the Brit exit I agree with what you say and selling into this kind of created market turmoil is suicidal .This is a classic example of the Pigmailia effect the remain side said the market would fall as vote getting strategy and when they lost investors panic but nothing changed Boston pizza is still the same
Stan

Q: My first reaction to the Brexit news was to buy the SP500 dip this morning, but now I recall that in 2011, the market fell 17% over two weeks. This was triggered by the debt ceiling fears. With Britain leaving the European union and possibly more countries following, it seems that this event is FAR MORE important than the debt ceiling, so a 15% correction seems very probable. Usually, when an investor has cash, it's better not to wait for a pullback, but now we do an have an "event" on our hands. The media will surely go on a fear mongering campaign. Would you recommend waiting a week to start buying, or, giving it a few more weeks?

Q: Looking at a market downturn for the next several days or weeks,would you have any suggestions as to put a "stinking" bid in in certain companies?
Could you suggest some stocks?
And what would be the "stinking" bids be?at what point?
Can you see something on you computer screens?

Q: The fixed income portion of my portfolio has been suffering for the last few years, what do you think of the above and what recommendations would you have, thanks, Jean

Q: Hello folks:
Month of May has come and gone. Some seasonal investing gurus said, it is nowadays in June that we should see a seasonal correction. June is almost gone along with Brexit!
I know you are not fans of Technical analysis.
But is there going to be a correction. seasonal or not?
What does your crystal ball gazing say!!
Looking at employing cash IF and WHEN the correction takes place.
Thanks in advance.

Q: In addition to providing advice on specific stocks to buy ( which you are working on) can you provide advice as to timing and quantity of the purchase assuming cash. To be a little more specific, would you deploy the bulk of the cash today or over the next week and what time would you enter in? Thx

Q: Given yesterday’s UK referendum result, I expect there will be widespread panic and big declines on markets worldwide on Friday. I’m guessing your immediate advice will likely be “don’t panic, do nothing, wait and see how events unfold, etc”. In my specific case however, while I was expecting the “remain” side to win, I was also fearful and preparing for the worst just the same to the point that I am now 50% in cash. That is a lot of dry powder and I plan to start buying first thing Friday morning and into the coming days. What advice would you give someone who has been “doing nothing” for a while and is now looking to put sidelined cash to good use. Where do you think the best opportunities will be (both Foreign and domestic) to pick up specific names (or ETFs) that will get beaten up in the coming days worse than they likely deserve. Please provide a few names or ETFs for someone looking to be opportunistic on this occasion.

Q: Hi Peter and team. Just heard the news this morning. Can you suggest a few good large cap stocks with good yields to pick up if there's a significant drop in price. Looking mostly for good yield, relatively safe and at least a bit of growth. Preferably Trading on New York Stock Exchange or as ADRs. Thank you. Tulio

Q: Hello Peter, I am looking for some bonds to add to my portfolio, I would appreciate your ranking the above for me. Also, your opinion of how would they react to upcoming interest rate increases. Perhaps can suggest a better choice. Many thanks, J.A.P. Burlington

Q: Hi Ryan and Peter,
My question is of a general nature and concerns a problem many seniors are having with portfolio construction. I'm 70 years old, have a defined benefit pension which, along with my wife's defined plan, covers our monthly commitments. We are underinvested in the fixed income part of our portfolio but because of the lack of returns on bonds and GIC'S, are hesitant to commit a large portion of our savings to this sector.
As with many seniors who have their monthly expenses covered by pensions, we need guidance as to what percentage of our funds should be in fixed income. What percentage do you think is appropriate and could you suggest a few specific investments.
If you believe, as I do, we would be better off investing in Canadian Blue Chip companies that offer relatively safe growing dividends, could you suggest several such companies.

Thank you in advance for your much appreciated guidance.