Q: Hi , Do you think were heading for a Bear market and if so when do you think will be in one , the other day I read that we are currently in the eight inning of the Bull market how long will this last before the bear arrives.
Thanks
Thanks
You can view 3 more answers this month. Sign up for a free trial for unlimited access.
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: The following have shown little change in the current correction. Is this the type of correction wherein the sellers will get around to worrying about these stocks/sectors, or does it look principally oriented to the energy sectors. Thanks
BPF.UN, VNR, ET.
BPF.UN, VNR, ET.
Q: Hi Team,
I am getting very tempted to buy some stocks that have sold off(pembina, td bank etc...). I keep telling myself to be patient and wait for some evidence of buying however, there seems to be some good opportunities to at least start a position or add to an existing one.
Seeing this great clip from Warren Buffett is also influencing my decision (clip #4) http://thereformedbroker.com/2014/10/02/warren-buffetts-tv-appearance-october-2nd-2014/.
I am normally against averaging down, but I have noted that it can work well with GOOD QUALITY companies in case the correction still has legs. Anyways, could you and the team recommend how you handle the correction and give 2 names from each sector that look attractive for a long term investor.
Thanks again guys
I am getting very tempted to buy some stocks that have sold off(pembina, td bank etc...). I keep telling myself to be patient and wait for some evidence of buying however, there seems to be some good opportunities to at least start a position or add to an existing one.
Seeing this great clip from Warren Buffett is also influencing my decision (clip #4) http://thereformedbroker.com/2014/10/02/warren-buffetts-tv-appearance-october-2nd-2014/.
I am normally against averaging down, but I have noted that it can work well with GOOD QUALITY companies in case the correction still has legs. Anyways, could you and the team recommend how you handle the correction and give 2 names from each sector that look attractive for a long term investor.
Thanks again guys
Q: My cousin has never invested in the stock market. She has 100k and is thinking to invest in a portfolio of 20-30 different stocks now. Her time frame is 15-20 years. Understanding you don't have a crystal ball, what do you think of the timing?
Q: Hi folks: Would buying HIX (TSX 60 inverse ETF) be a good hedge against a market sell off at this time?
Q: Today, Reuters (Mike Dolan) published a piece "Financial Market Storm Brewing.." and the last paras stated:
"If investors are surprised by financial storm, it won't be because they weren't warned. Financial watchdogs have been waving a red flag about overstretched markets for the past year and stressed concerns again this month.
"There are increased signs of complacency in financial markets, in part reflecting search for yield amidst exceptionally accommodative monetary policies," the Bank governor Mark Carney said last week, citing conclusions of the G20's Financial Stability Board which he chairs.
"Volatility has become compressed and asset valuations stretched across a growing number of markets, increasing the risk of a sharp reversal."
Particularly because of Mark Carney's comments, this caught my attention. Any thoughts on how this might play out?
"If investors are surprised by financial storm, it won't be because they weren't warned. Financial watchdogs have been waving a red flag about overstretched markets for the past year and stressed concerns again this month.
"There are increased signs of complacency in financial markets, in part reflecting search for yield amidst exceptionally accommodative monetary policies," the Bank governor Mark Carney said last week, citing conclusions of the G20's Financial Stability Board which he chairs.
"Volatility has become compressed and asset valuations stretched across a growing number of markets, increasing the risk of a sharp reversal."
Particularly because of Mark Carney's comments, this caught my attention. Any thoughts on how this might play out?
Q: Since we are having a correction, I need to free up some cash to buy stocks I have been waiting for to pull back. Do you recommend selling a partial position of a winning position or selling a losing position(precious metals of course).The new positions I want will help diversify my portfolio. I am tempted to sell the losing position. Also, could you guys give any recommendations on a course of action with this correction and any possible future outlook of the economy etc..... Or any nuggets of wisdom you wish to throw out there.
Thank you
Thank you
Q: Waiting for an entry point on your A rated stocks. Held on to excess cash for this reason. Should I just go with A rated or lower? I know you don't like to time the market but what might be the turning point clue?
Q: The Russell 2000 index is now negative for the year and looks (to me) like a topping pattern. Is this likely to be an early warning?
Q: What's your view on what's going on in the markets today?
Q: Hi Peter and team,
If Scotland say YES on Thursday, how bad will affect us in Canada - Will TSX Index down 10-15% ?
Thank you for your great service to all members !
Regards,
Tak
If Scotland say YES on Thursday, how bad will affect us in Canada - Will TSX Index down 10-15% ?
Thank you for your great service to all members !
Regards,
Tak
Q: Hello Peter,
What a difference a month makes! In August you wrote an article on reasons to be bullish and a short month later you identified reasons to be bearish. It is now up to us to navigate in those cross currents. At the end of August, I had decided to raise some cash in my RRIF portfolio (I’m 71); it now stands at 15%. If a correction occurs and some of my holdings pull back, I will take advantage of opportunities.
But what worries me are the doom and gloom scenarios that some pundits elaborate and that forecast cataclysmic crashes. So I decided to research for the principal reasons that caused the tech bubble in 2000/01 and the more recent 2008/09 crash. I found out that the answer lies in the bond market, specifically in the yield curve. In the period prior to the tech bubble, the yield curve had flattened and reversed and in the period prior to the recent crash, the yield curve had flattened.
Why is that fact significant? Financial institutions borrow money on the basis of short term bond (lower) rates and, in turn, lend out on the basis of long term bond (higher) rates; they make their money on the differential. But if the yield curve flattens or reverses, these institutions will cease to borrow and lend; as a result, the liquidity in the economy will dry up leading to stagnation and crash.
Knowing very well that there must be other reasons for the downturns, I take comfort in falling back on the KISS principle.
So, I routinely (daily) make it a point to take a look at the yield curve and then move on.
I appreciate your comments,
Tony
What a difference a month makes! In August you wrote an article on reasons to be bullish and a short month later you identified reasons to be bearish. It is now up to us to navigate in those cross currents. At the end of August, I had decided to raise some cash in my RRIF portfolio (I’m 71); it now stands at 15%. If a correction occurs and some of my holdings pull back, I will take advantage of opportunities.
But what worries me are the doom and gloom scenarios that some pundits elaborate and that forecast cataclysmic crashes. So I decided to research for the principal reasons that caused the tech bubble in 2000/01 and the more recent 2008/09 crash. I found out that the answer lies in the bond market, specifically in the yield curve. In the period prior to the tech bubble, the yield curve had flattened and reversed and in the period prior to the recent crash, the yield curve had flattened.
Why is that fact significant? Financial institutions borrow money on the basis of short term bond (lower) rates and, in turn, lend out on the basis of long term bond (higher) rates; they make their money on the differential. But if the yield curve flattens or reverses, these institutions will cease to borrow and lend; as a result, the liquidity in the economy will dry up leading to stagnation and crash.
Knowing very well that there must be other reasons for the downturns, I take comfort in falling back on the KISS principle.
So, I routinely (daily) make it a point to take a look at the yield curve and then move on.
I appreciate your comments,
Tony
Q: According to your article in the September 12th issue of the Financial Post, you appear to have taken a bearish stance. What is your outlook for the markets over 1- year, 3-year, 5- year and 10- year time periods? What cash/equity proportion in your portfolio would you have currently?
Q: re: Mitigation Strategy (MS)and lagging equities
Saw your answer for Rita re the MS and your comment to reallocate into stocks that "are lagging."
Could you give us a few examples of your opinion re which equities you would consider are lagging?
Thanks for all your do
Gord
Saw your answer for Rita re the MS and your comment to reallocate into stocks that "are lagging."
Could you give us a few examples of your opinion re which equities you would consider are lagging?
Thanks for all your do
Gord
Q: Hi Peter and team:
Just inquiring about your view on Cad-US over the next 3 to 9 months. Appears recently to be in a trading range between 90 to 94 cents. Do you see this as the possible range in the near term and if so what catalysts or negatives are possible to change this scenario?
Just inquiring about your view on Cad-US over the next 3 to 9 months. Appears recently to be in a trading range between 90 to 94 cents. Do you see this as the possible range in the near term and if so what catalysts or negatives are possible to change this scenario?
Q: considering Europe's weakness, do you think this will have a negative effect on cdn $ ? (ie weak oil and other commodies)
Thanks, Bob
Thanks, Bob
Q: Hello again Peter and Team. Would you be able to rate the Ten sectors as to their potential volatility within a correction or recessionary environment.I am sure that Financials would be the strongest suit, but not sure which way I would lean towards in considering the positive, or negative potential of Energy, Utilities and Industrials. I am particularly interested in where you would place Materials and Info Tech. Your thoughts please? Thanks again.
Rick
Rick
Q: Hello: Further to the August 06, 2014 question asked by Paul about the recent market declines... If someone has cash to invest, what would you recommend? Wait till close to the end of Sep.? Wait x weeks to see if the markets "settle down"? And, please tell us where and how to look for the volumes you mentioned? (Total market or individual stocks or etf's?)
Just a few days ago, I invested about $100K in some US etf's. They are, of course, now down about 1.5% to 2.5%. I have a further $275K to invest. Is it best to wait?
Just a few days ago, I invested about $100K in some US etf's. They are, of course, now down about 1.5% to 2.5%. I have a further $275K to invest. Is it best to wait?
Q: Peter or Ryan.... The markets have fallen dramatically over the past week and, with oil approaching $95 a barrel, do you think we are slowly moving into correction territory? August traditionally has been one of the worst months for the stock market, if not THE worst. And, if the markets do correct 10%, how easily could 10% become 20% or 30% with stop-loss orders kicking in on the way down? Your comments please.
Q: http://www.theglobeandmail.com/globe-investor/inside-the-market/the-man-who-foresaw-the-2008-crash-now-says-stocks-are-in-a-highly-advanced-bubble/article19812168/#dashboard/follows/
Hi Peter,
I would be very interested to hear your thoughts on this article. Thanks in advance.
Best regards,
Judith
Hi Peter,
I would be very interested to hear your thoughts on this article. Thanks in advance.
Best regards,
Judith