Investment Q&A

Q: Hi Peter. I have been hearing rumors of a severe correction or even a crash of the markets. Last year in May, a friend of mine panicked and cashed in all his stocks and funds because of the same rumors at that time. It was obviously a huge mistake, given what the market has done in the past year. I know that no one can time the market with any real accuracy. However, I am getting a little nervous. Is it a good time to have more cash in my portfolio. In other words would you recommend selling stocks that have done really well in the last year in order to have the security of cash? Thanks for your great insight. Cam

Q: may i have your thoughts on, 1) central banks owning 29 trillion of world equities. 2) the demise of the petro dollar and how it would affect n.a. markets if the saudis start selling thier oil in other currancys (yaun, ruble, gold,etc.) tkx pat

Q: This is by way of me trying to figure out why the market will suddenly shoot up or plunge down. I guess I can't help always seeking a reason. The reason given for today's big drop in the TSX and the DOW is tension in Iraq (or so I read on Bloomberg). This confuses me. The worst hit sectors were materials (Gold) and energy. Why would people fearing turmoil in the middle east sell off energy stocks in Canada? Would they not benefit? And isn't gold supposed to rise during times of tension? Or is Bloomberg simply seeking a reason for the fall and plucking that one of out of the air?

Q: Team,

I've read a couple of recent articles and continue to hear BNN talking heads talk about inflation / inflation risks to the economy, hoping to get a 5i opinion on the matter, specifically:

1. What industries would be hurt the most by inflation?

2. What is the best way to protect your portfolio if one feels inflation will start to creep back into the market? Do we just buy more gold / gold companies? Are there other industries that can benefit from inflation?

3. Based on recent reports (CDN and US) what are your thoughts on inflation risks over the next 6-12 months?

Thank you for your insight.

Q: safety??
the market seems to go higher and many feel a significant correction is coming. what say you ??
Which stocks might fair best in a serious correction or and bull market.A short list with a reason would be very helpful.
thanks
Yossi

Q: I still have my oil positions but am holding a high percentage of cash this summer and waiting for the "correction" which seems delayed or not coming at all. Can you give me your sense of where the TSX is going and which sectors do you like coming out of the summer and into the latter part of this year?

Q: Can you see any indication of a topping to the present bull market (other than it's length) - investor euphoria - divergerce of indices- excessive P/E etc. ??

thanks Jim

Q: What is your opinion about about VIX( volatility index ?). Is it worth investing money on this stock for future gain. ? It has been very low for a while and something is going happen sooner or later.Thanks. Ebrahimk

Q: Hi Peter,

My condo is for sale; Any thoughts on where/how to invest the proceeds in the most tax efficient way? Right now I have a decent income. Should I still be in dividend paying stocks/etfs? Are growth stocks too risky at this point? Thanks for any ideas!

Q: Peter, thank you for all the sound advice you offer to us. we keep hearing that what goes up must go down. I remember back in 2004 people saying bank stocks were a no brainer as they kept going up although we were starting to see some segments of the economy ie car indusdry showing signs of weakness. However the stock market continued in a positive trend for another few years. Should we be concerned at this junture or continue to have faieth in the capital markets? Would you consider this to be a hold period and buy on weakness or sell on strength so you have cash for a future downturn. I realize you do not have a crystal ball and no one can time the market but there are trends I am sure you have seen.thank you again for the service you offer.
m

Q: What are your thoughts about the Canadian dollar vs the US dollar?

Q: Are we approaching a bear market? Tim Shufelt, in Sunday's Globe and Mail, Quoted Denis Mark of the National Bank, and others, who pointed out that while the indexes might not have fallen off, that is largely because of the movement of money into large cap stocks. The 'average' stock, he said, was down 10-12%-27% on S&P-TSX-NSQ from its highs, depending on the index. He called it a stealth correction, and said it would soon spread to large caps too. Any advise? The TSX has fallen 8 of the last 10 sessions now.

Q: It's my understanding that the yields on Greek, Spanish and Irish debt are currently trading at very thin spreads to US teasuries. My instinct is that this represents an overall high level of risk complanency in the markets in general and that we are likely due for some weakness ahead as things normalize. I'd love to hear your thoughts on this.

Thanks,

Q: Hi:
In iffy markets like this , I usually grab some profit and duck for cover ... even when I react OK I never get back in the market soon enough ...
This time I am taking the daily blows and am staying put ...
Are there stocks I should be looking at as best buying opportunities or sectors to which I should focus ???
Your site has helped me immensely . Thankyou .

Q: Tech stock have really fallen off a cliff. Is there still a bull market for them left?

Q: Does it make any sense to buy 5 year GIC's as part of a balanced portfolio given that interests rates are at all time lows and rates are forecast to rise over this time frame? Thanks. Michael

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: Do you think the bulk of the correction in the general market is over or does it still seem to have more downside to do?

Thanks

Q: I have invested in both canadian and u.s.a stocks,my question is,there is a lot of chatter about the demise of the u.s.a currency,should i sell my u.s.a stocks and stay in canada as well as buy more gold and silver. the u.s.a debt is unsustainable and the dollar will be devalued, how about other countries that are safe to invest in. greatly value your oppinion. thanku

Q: Good Morning Peter and Co.
Can you expand on your response to what you think the economic and market conditions for 2014 will be like? What sectors or industries do you see as outperforming the market if any?
Thank you for your advice and information.