Q: In many of your responses you mention the scenario of interest rates peaking and then going down. However, there is also the possibility of "higher rates for longer", I've heard mention of up to a decade. I've also read that 5% is historically a very average rate. If this scenario plays out, how will it likely effect dividend blue chip stocks and the markets in general? I know this is a predictive question, but I'm looking for your knowledge based on what has typically happened in the past with sustained higher interest rates over a longer period. Thank you!
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: I know it is uncertain but when/where do you think this rate hike cycle will end ? Do you think the U.S. 10 Year Treasury Note will reach 5-6% ?
Thanks !
Thanks !
Q: Assuming western governments favour financial repression to get themselves out of their respective debt mess, what does this all mean for a recent retiree like me? Are any stock sectors worth investing in? How about gold / material stocks and certain REITs ? Are utilities safe?
No government leader had any backbone over the past couple of decades and chose to continually “kick the can down the road” and now there’s no way out….and the piper will eventually be paid.
No government leader had any backbone over the past couple of decades and chose to continually “kick the can down the road” and now there’s no way out….and the piper will eventually be paid.
Q: Oh gosh, Keith Richards for the last 2 months in the Money Saver is raising red flags about the market.....comparing where the market is now to pass markets that have plunged downwards, like big time. And there is news out of China, the yuan falling and economy slowing down, like big time, too This makes me wonder, seriously about doing this --- should I sell all or most of the stocks held in the TFSA and LIRA accounts as there would be no tax to pay.....but hold on the those in the trade accounts What are 5iR's take of the stock market going forward and my pondering about selling??? .........Thanks for your insights.........Tom
Q: I hold VOT at a loss (not useable for tax). Many analysts are declaring they are now out-of-love with growth. Do you agree that growth will, generally speaking, struggle through ~2025? Is this a good time to sell and transfer affections to Value shares— for example switch to VTV? VTV has outpaced VOT over 5, 3 and one year(s).
When I make such switches, I often find the security I sold significantly outperforms the one I lavished love on. With my errors in mind, I ask for your thoughts on growth vs. value over the next year or so. Please add a bit of your valuable commentary— that would be very helpful.
When I make such switches, I often find the security I sold significantly outperforms the one I lavished love on. With my errors in mind, I ask for your thoughts on growth vs. value over the next year or so. Please add a bit of your valuable commentary— that would be very helpful.
Q: For a retirement objective + dividend investing, could you rank these sectors for more safety and stability in periods of economic uncertainities or slowdown : financial services,energy,healthcare,technology,utilities,communication services,consumer cyclical,consumer defensive,industrial,real estate.I guess that some sectors are more esssential than others ?
Q: In today's Globe and Mail article, David Rosenberg argues that stocks are overpriced and concludes that "bond yields and equity prices need to adjust lower in coming months, quarters, and maybe even years. This means asset allocators should be taking profits in the overpriced equity market and placing the proceeds in oversold Treasury notes and bonds."
Do you agree with this view?
I will appreciate your insight with respect to changing our asset mix based on Rosenberg's views.
Do you agree with this view?
I will appreciate your insight with respect to changing our asset mix based on Rosenberg's views.
Q: I've been expecting utilities-and-telecoms to see better price action on the prospect of stable rates, but today's reversal suggests a continuing downtrend. Likewise, I've been expecting financials to continue to look past these same fears (and there has been progress), but now wonder if we've reached a plateau.
Given that these sectors 'should' be responsive to different forces, which would you pick for a quicker and more robust upturn? More specifically, should we expect utilities to continue to suffer until rates actually go down by some significant percentage?
Given that these sectors 'should' be responsive to different forces, which would you pick for a quicker and more robust upturn? More specifically, should we expect utilities to continue to suffer until rates actually go down by some significant percentage?
Q: I hold some TLT and have obviously entered into too early. But I am prepared to be patient.
My question is more about the Billionaire Ackman article last week where he states he is shorting the 30 year treasuries. Now, is he doing that simply because he feels the it will be a long time before the Feds actually start lowering rates or, is there something else out there that I do not understand about long treasuries?
My question is more about the Billionaire Ackman article last week where he states he is shorting the 30 year treasuries. Now, is he doing that simply because he feels the it will be a long time before the Feds actually start lowering rates or, is there something else out there that I do not understand about long treasuries?
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Adobe Inc. (ADBE)
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Alphabet Inc. (GOOG)
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Intuitive Surgical Inc. (ISRG)
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AbbVie Inc. (ABBV)
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Salesforce Inc. (CRM)
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Honeywell International Inc. (HON)
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Shopify Inc. Class A Subordinate Voting Shares (SHOP)
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Roku Inc. (ROKU)
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L3Harris Technologies Inc. (LHX)
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Vertiv Holdings LLC Class A (VRT)
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Lantheus Holdings Inc. (LNTH)
Q: Hi Team,
Shop is falling again today despite earnings beats and price target increases across the board. Is it a good time to buy the shares from todays profit takers? Also in general do you see this market sell off sparked by the fitch downgrade of the US credit rating a buying opp? There has been some brutal sell offs over the last 2 days. Which names would you be looking to buy in this weakness? Thanks
Shane
Shop is falling again today despite earnings beats and price target increases across the board. Is it a good time to buy the shares from todays profit takers? Also in general do you see this market sell off sparked by the fitch downgrade of the US credit rating a buying opp? There has been some brutal sell offs over the last 2 days. Which names would you be looking to buy in this weakness? Thanks
Shane
Q: Hi,
This is a BIG picture question. I don't see any questions so far on 5i.
First Japan apparently makes an about turn in their interest rates? The articles that I read went above my head! And now Fitch downgrades the US credit rating. Again too much for me to understand.
What does it all mean to ordinary people like me? Many of my friends who are all seniors mostly say, cash is King!
I know you like to be fully invested.
Any words of wisdom?
Many thanks in advance.
Mano.
This is a BIG picture question. I don't see any questions so far on 5i.
First Japan apparently makes an about turn in their interest rates? The articles that I read went above my head! And now Fitch downgrades the US credit rating. Again too much for me to understand.
What does it all mean to ordinary people like me? Many of my friends who are all seniors mostly say, cash is King!
I know you like to be fully invested.
Any words of wisdom?
Many thanks in advance.
Mano.
Q: Lost returns from listening to esteemed, perennial doomsayers. Includes David Rosenberg.
https://ritholtz.com/2023/08/10-wednesday-am-reads-341/
https://ritholtz.com/2023/08/10-wednesday-am-reads-341/
Q: Everyone, where will the market go once the DOW breaks above the previous high and when will it break above the previous high? Clayton
Q: Hi Peter,
In a long-term account (20+ years), could you please describe what asset allocation you would choose (including %)? Would you stick to stocks and bonds and gold, or are there any other asset classes you'd want exposure to?
Thanks as always!
In a long-term account (20+ years), could you please describe what asset allocation you would choose (including %)? Would you stick to stocks and bonds and gold, or are there any other asset classes you'd want exposure to?
Thanks as always!
Q: I am working with my son (age under 50) to help him put together a stock portfolio. Considering that the US and Canadian markets have significantly different sector weightings what would you recommend for reasonable diversification in a growth weighted portfolio? I thought you had dealt with this type of question a number of times before but haven't found previous responses.
Thanks, Hugh
Thanks, Hugh
Q: For over 12 months ending June the number of TSX 52 week lows exceeded the 52 week highs.
I notice that all 3 business days this week the number of 52 week highs have have exceeded the 52 week lows
In your opinion could this be a further sign that the TSX is entering a bull market phase.?
I notice that all 3 business days this week the number of 52 week highs have have exceeded the 52 week lows
In your opinion could this be a further sign that the TSX is entering a bull market phase.?
Q: Peter; The perennial “ bear”, aka Rosenberg, basically just trashed the BOC last rate bump, saying the 2% level , they want is there. Could you comment on whether you agree or don’t and why ? Thanks.
Rod (;Publish if you wish) .
Rod (;Publish if you wish) .
Q: My portfolio is recovering well, but still down about 5% down from its high because of the small caps that I own. They are all cheap and profitable companies, but some are still down 50%. If we go into recession will they crash? How should I deal with these companies? Should I be taking losses now to protect from future losses? I just don't understand the market right now because usually small caps are the first to recover. My original plan was to sell 1/2 after they recovered but that isn't happening.
Q: What evidence is there that the rise in interest rates have been the reason why inflation has declined?
Q: In many questions asked there seems to be some expectation that interest rates will go down at some point in the relative near future. Do you think this is a valid expectation? Employment remains strong; housing market prices are holding; with some limited exceptions we have not seen significant layoffs…. Why would the Bank of Canada reduce rates anytime soon? I suggest that we had such low rates for so long, people expect that to be the new norm. We are only now
approaching the level of rates that were ‘normal’ for a very long time. What am I missing?
approaching the level of rates that were ‘normal’ for a very long time. What am I missing?