Investment Q&A

Q: Everyone, is the money flow into the market in 2024 higher or lower than 2023? What segments is the money flow going into or out of. Clayton

Q: Good morning,

Have you done any work on what asset classes or equity sectors significantly outperformed/underperformed while Trump was President from 2016-2020. I recall that that the USD did not do well; gold did very well.

Any views/analysis most welcome. And would you be worried about overall market directionality with his expected focus on China and tariffs?

Q: Just a general question on how to react in moment like we are having now; a very nice 4 month bull with some sign of top. How to respond ? Trim your winner, trim your looser or do nothing and accept a correction. Thanks !

Q: Hi 5i Team - I have heard some concerns about other countries withdrawing money from the TSX and probably the Vancouver exchange as well. Am assuming that this is through the sale of equities and then withdrawing the proceeds. Am not sure which countries or how many. Could you comment on whether this a valid concern, and if so then how might it affect prices of Canadian equities going forward.
Thanks.

Q: Hi there, what economic data points are being released next week, and the week after?

Which one of those data points listed do you believe will move the markets (+/-) over the next few weeks?

History dictates that markets are generally positive during the month of March, anything to be concerned about this March? Your thoughts on (forward looking) how you believe this month will unfold?

Thanks!

Q: A family member is 73 years old, Canadian, single, retired, and lives a very modest lifestyle. She has $100,000 from a recent inheritance with no other savings. I have been asked to assist with setting up an investment portfolio. Another family member has recommended she place some funds with a "MIC" which historically has a 7 % return; I think $20,000 could be allocated there. Then looking for a reasonable measure of security of capital, with a balance of some income and a bit of growth, my thought would be to divide the remaining $80,000 into the following: VDY; FTS; RY; SLF; BAM; CNQ; ALA; WSP; Amzn; and VGRO.

If you were me, would this seem like a reasonable approach?

Many thanks.

Q: What is the best way/strategy to make money in the stock market? I have tried trading, but that only led to small profits.

I tried buy and hold, but then I didn’t cut my losses in time.

Q: could you comment on sectors affected by the new u.s. sanctions on russia.
many thanks

Q: "History doesn’t repeat itself but it often rhymes". Does the AI/tech surge remind Peter of anything in the markets before in history? If so, how does it all end?

Q: I want to spread some cash out, and away from a Canadian focus. Which of these two ETF's would you consider a better purchase for long term growth?

Q: READING A LOT LATELY OF BUBBLE, RECESSION, MARKET CORRECTIONS. INFLATION, INTEREST RATES ETC. UNFAVOURABLE FACTORS FOR INVESTORS.

WHAT IS YOUR OUTLOOK/THOUGHTS FOR THE US AND CDN MARKET OVER THE NEXT 12-18 MONTHS. LOOKING FOR SOME BRIEF GUIDANCE AS I AM SITTING ON SOME CASH THAT I WOULD LIKE TO DEPLOY.

I HAVE SIGNED UP FOR YOU US OUTLOOK WEBINAR NEXT WHICH I ANTICIPATE MORE DETAILS.

THANK YOU

Q: Hi 5i, this is a general question on the big ship S.S. North America.

First what do you consider are the best leading indicators? For example US PPI and Retail Sales are down this week, and the sales are down a lot, not sure if this is seasonal post holiday burn out. Another thing that perplexes me is why housing, both mortgages and rent, aren't backed out of the CPI. If they are then aren't we around 2%. Lastly how come we don't look at GDI more? It seems while GDP , govt and personal spending, is driving this number however GDI is going down. It would also be nice to see real numbers adjusted for the massive immigration, pretty sure they would all be negative.

Q: I have quite a bit of cash in GICs & HISAs to invest. I am trying to reconcile buying at the top of the market vs waiting for a drop (which is difficult to time). I do not need the funds in the near future. I am thinking that if I buy now at the top of the market and then the market drops, I can always sell for a capital loss and immediately repurchase a similar ETF that trades in a different index provided the ETF is held in a non-registered account . If I take this course of action, then I would actually be no further behind vs waiting for a market drop (other than the ~4.5 I would get in a GIC or HISA). Is my thinking logical? Am I missing something?

Q: My question is what to do with my legacy fixed-income holdings.

I've been holding the above ETFs after being advised by 5i's portfolio analysis services to increase fixed-income holdings. Holdings are in registered accounts at a 25% weight combined.

They have all lost capital value over the past 5 years, however with distributions, they have returned approximately zero or flat over the last 5 years, I view this as a loss due to the inflation over this time.

What would 5i suggest I do with these fixed-income holdings moving forward? Should I hold for ballast or sell and move funds into dividend growers like Utilities or Pipelines eg. FTS, ALA, GEI, TRP, etc.)? The bond investments have put a drag on my investment returns.

Please advise your thoughts and wisdom, Thank you.

Q: What would you advise as an optimum allocation of CAD vs US stock now (and the next few years) ? It seems that the US economy is growing and would support more easily higher interest rates than Canada. Also more innovation, productivity.
Thanks !

Q: My 22 year old son received a $100,000 gift from his grandfather on his birthday. His TFSA and FHSA are fully funded so this money will go to funding his first unregistered account. The S&P 500 has shown an average annual return in excess of 13% over the past 15 years and over 20% in 2023. As such, it is tempting to just put the full amount in an S&P ETF, but having come off a 20% year gives one pause. What is your recommendation in this case?

Q: Can you kindly recommend any sites tracking RSI for individual stocks and whether you feel this is a good input into the decision making process of when deciding to buy an oversold stock?

Also, I notice there are timeframes for RSI (weekly, monthly etc) so how does the timeframe inform the result and help a decision to purchase an oversold stock?

Thanks as always for your guidance!

Q: Everyone, what have you learned about the markets so far this year? Clayton

Q: Hi,

As individual DIY growth investor, what are some of the top things we can we do to maximize up-market capture vs minimizing down-market capture? I have a longer timeframe and am comfortable with volatility in the markets. With the strength in tech, the sector has run to ~26% (SHOP, KXS, CSU, NVEI, CRWD, TOI, NVDA, LMN, INTU), followed by financials 18%, cons disc 15%, industrials 12% and the others all below 6%.

Is it time to trim across the board and re-balance? How do you balance this while allowing strong compounders to continue performing over time? What are the key things to do focus on to beat the market going up while protecting those gains and minimizing downside?

Thank you!

Q: Hi, my respected 5i team
I know it is impossible to predict the future, I would like to get your professional ideas about how the "S&P/TSX Composite Index Banks" will perform in the next 5 years? It seems everyone expecting the interest rate going down and how will this affect the 5 big banks performance down the road?

And how will the general market perform (both US and Canada) in the next 5 years?

Thanks in advance!