Investment Q&A

Q: I'm concerned about the volatility of the TSX; up 144 yesterday, down 167 today at 11.15 pst. In this environment, how can anyone invest for the long term with any confidence? We have 600G in stocks, and another 10% in cash. I was thinking of adding to some positions, but would I be better keeping the cash in the bank? Or is it just 'sell in May and go away'? Until when?

Q: Please help me clear my head, refocus and decide on a course of action after today's action.
Here are 2 headlines from the Globe and Mail, a mere 4 days apart and at polar opposites in terms of perspectives.

1. Headline on Globeinvestor Gold website today: "End of the supercycle looms as commodities, stocks sell off"

2. Four days ago, Rob Carrick outlined the case for :"Preparing for a Canadian comeback". (I have been and still do respect Rob's research, knowledge and opinions. So no put down intended here.)

Hopefully the shrill doom's day pronouncement about the end to the supercycle is an over -reactive, hysterical reaction to the last couple of days and not a forecast of worse things to come.

Your opinion would be greatly appreciated.

Thanks.

Q: Hello, I was wondering if you could clarify something for me, the "Sell in May". I'm assuming this means, to sell stock in May and take your profits, that being said it would follow that prices would go down in May. When I look at historical data, for stocks I'm interested in it seems that the prices actually go down in April, but historical data is limited in scope. I'm looking to buy, across the sectors, I've never bought during this time period, my question is should I wait?

Q: New member. Very informative site. Enjoying my membership a lot. I would like to add a (non-technology) growth stock to my portfolio. Can you give me two or three names to choose from? (I understand--all too well--that growth always comes with risk.) Thank you

Q: Hi, There is talk of a market pullback in the very near future...is it better to wait for this to happen and then buy at a discount?

Q: Goldman Sachs is evidently shorting gold and claiming 1450 end of 2013. I am quite cynical about their past record. What do you think about gold going lower here? Are you still confident in your Goldcorp assessment as a quality hold through this next period, until the seasonal summer buying months arrive? Thanks in advance.

Q: Hi 5i team. This is a general economics question. is there evidence that the US economy is capable of growth in the absence of stimulus? My simplistic calculation (14 T economy, 1T pump-priming) suggest that if QE is taken away, GDP growth will be zero or even negative. If that is the case, is the euphoria in the markets thus far this year based on the notion that, at least, things have improved so that we no longer slide towards recession (assuming the Fed will not stop QE) and actions taken by the Fed later against a better growth background (when it happens) will not affect the economic outcome drasticlly and this, against a backdrop of negative real returns on 10 yr treasuries now has push the markets up? Do you not find this going-in-because-it's-the-best-of-a-bad- bunch a little worrisome? Thanks. Henry

Q: Hi Peter, Your thoughts on today's blood bath and jobs report please. How bad is the report in your opinion. Thanks

Q: Three years ago this month the TSX was 1,100 odd points higher than DJI. Yesterday, DJI was almost 2,000 points higher than the TSX. Is there any significance in that?

Q: Hi could i get your opinion on the news this morning about a Cyprus bank tax.
thanks

Q: I am interested in your overall impression of the last couple of days. Bull market correction? Or downward trend due to negative sentiment that is building? Do you still have positive outlook for the remainder of 2013? Thanks.

Gerald

Q: SH-N With the US market having been on an upside ride for a while and at fairly lofty levels, does the risk/ reward ratio of using SH to short the market in order to protect myself against losing some of my gains seem like a reasonable trade? SH appears to be at about a 5 year low.

Q: Could you please give me your view of the Canadian Bond market. We have a fund that follow the Dex Universe Bond Index. Recently , we have heard that a lot of managers think that bonds are at risk for a downturn and that they are drastically reducing their exposure to this sector.
Thanks

Q: Peter. How's about a nice hefty correction of NA markets by mid to end February. I have been reading a number of SEERS and they all give "good' reason for it.
Regards - Sittin' in cash Bob Rushton

Q: Peter, what do you see for the economy for 2013 and the affect on the stock market?

Q: Canadian consumer debt is at 167% of income. Public sector wages are likely to be frozen in Ontario. Do you (your team) foresee a regional or national recession in Canada soon?

Does this factor into your stock ratings?

Q: Will QE help the economy? Do we not need to see higher GDP and increase in jobs before we can have any confidence in the market? I am concerned about chasing this market - what is the downside risk to S&P. It seems (or feels like it) many stocks have priced in the last QE - with the upcoming election, fiscal cliff etc - any negative news we will get a pull back - maybe a significant one. Everybody seems to have different opinions - it is hard to know what to do.

Q: Thoughts on the recent US Q3?
Do you feel it was open ended and will continue into any recovery and thereby make companies less concerned about interest rates?

Thoughts on Euro bonds?

Q: Hello Peter ... my pension plan is interest rate driven,what is your opinion on when the fed is going to raise interest rates ??March 2013??

Q: Hi,your best guess please on the inflation vs de/disinflation debate. Will massive stimulus create future runaway inflation or will debt levels, demographics and structural imbalances win out on the de/disinflation side? Or is it de/disinflation first and inflation later. Thanks.