Q: What are the reasons for the significant drop in the Cdn and US stock markets since last Friday???.....thanks for your insights.....Tom
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: Is TSX 60 ETF a buy today?
Q: Hello 5i,
We are retired and in our mid 60's. We and have started pulling out 5% of our RRSP portfolio each year to pay bills and take vacations. One of our laddered GIC's came due on Monday. We can choose a 5-year at 4.59% but this is in an RRSP which we will pay 20% tax on upon taking funds out. Our equity to fixed income is 65 equity/35 fixed at this time.
Do you have any suggestions other than taking a 5-year GIC at 4.59%? We would be ~70/30 if we select equities.
Thank you
D&J
We are retired and in our mid 60's. We and have started pulling out 5% of our RRSP portfolio each year to pay bills and take vacations. One of our laddered GIC's came due on Monday. We can choose a 5-year at 4.59% but this is in an RRSP which we will pay 20% tax on upon taking funds out. Our equity to fixed income is 65 equity/35 fixed at this time.
Do you have any suggestions other than taking a 5-year GIC at 4.59%? We would be ~70/30 if we select equities.
Thank you
D&J
Q: Is the P/E ratio of the TSX too high today and does it need to decrease?
Is the P/E ratio of the S&P500 too high today, and does it need to decrease?
Is the P/E ratio of the S&P500 too high today, and does it need to decrease?
Q: June 25th - Inclusion rates go up.
Do you think that there might be some profit taking from now up to that date?
Maybe the number of people making a profit >$250K on selling shares isn't enough to nudge the market.
Cheers
Do you think that there might be some profit taking from now up to that date?
Maybe the number of people making a profit >$250K on selling shares isn't enough to nudge the market.
Cheers
Q: Hello 5i,
We have been monitoring the economic cycle relative to stock market performance. Commodities are hot and there is a trend towards Bonds. Typically, this would indicate a stock market decline leading into a recession (mild or or medium decline).
But, our world has been turned upside down since covid. Is the S&P model of economic cycle and stock market performance model valid at this time?
https://thenewsavvy.com/invest/markets/stages-of-the-business-cycle/
This chart is dated March 31, 2024 https://novelinvestor.com/sector-performance/
Your insight into stocks as of specific dates is very valuable. Thank you for guiding us through constant change and up to the minute decisions.
Debbie and Jerry
We have been monitoring the economic cycle relative to stock market performance. Commodities are hot and there is a trend towards Bonds. Typically, this would indicate a stock market decline leading into a recession (mild or or medium decline).
But, our world has been turned upside down since covid. Is the S&P model of economic cycle and stock market performance model valid at this time?
https://thenewsavvy.com/invest/markets/stages-of-the-business-cycle/
This chart is dated March 31, 2024 https://novelinvestor.com/sector-performance/
Your insight into stocks as of specific dates is very valuable. Thank you for guiding us through constant change and up to the minute decisions.
Debbie and Jerry
Q: Given the chance of a second Trump Presidency and the likelihood of tariffs, loss of democracy and full on graft and favouritism what Canadian companies are likely to thrive or at a minimum survive? Is there a defensive strategy that would work for either result in the election or is it one direction with Trump and another with Biden?
Q: I recently changed Financial advisors. I am sitting on a significant amount of cash to deploy. I am concerned deploying the cash while Canadian and US Markets reach all time Highs. Given the tremendous run the markets have had in the last 6 months, what would be your advice?
Thanks
Tim
Thanks
Tim
Q: What are your thoughts on being overweight US stocks vs. CDN for the next year or so?
Q: Knowing that portfolio allocations need to be very personal, but would 30% Canada, 45% US, and 25% international work as a general guideline for 60% equity portion of a new RRIF account?
Would you change the 40% fixed portion consisting of 20% 1-year GICs, and the remaining 20% of XHY, CVD, CPD, Bonds mutual fund (currently at loss)?
Thank you for such a great service.
Would you change the 40% fixed portion consisting of 20% 1-year GICs, and the remaining 20% of XHY, CVD, CPD, Bonds mutual fund (currently at loss)?
Thank you for such a great service.
Q: Your market update is an interesting read. If the BoC does start cutting rates in June and the Fed delays until (at least) Sept, what do you think the impact on the dollar will be? Will it drop considerably? How low do you think it is possible for it to go? Or should it be neutral based on the anticipated bump in GDP that ‘should’ follow a rate cut?
Q: Hi,
I’d like to add a bit of nuance to your response to Delbert on May 2 about Canada’s macro circumstances.
In your response, you state that Canada has a debt problem. According to the OECD’s 2022 figures (latest available), Canada’s debt to GDP ratio is better than Japan, Greece, Italy, the United States, Brazil, France, Spain and Portugal. (https://data.oecd.org/gga/general-government-debt.htm)
Again, according to the OECD’s level of GDP per capita and productivity, Canada is essentially tied with the OECD as a whole. (https://stats.oecd.org/Index.aspx?DataSetCode=PDB_LV)
In 2023, the OECD reports that Canada’s GDP growth was 1.5%, beating Germany, the UK, the EU as a whole, the Euro Area as a whole, Italy and France, and nearly matching the OECD Area average (1.6%) and the G7 (1.7%). (https://www.oecd.org/newsroom/gdp-growth-fourth-quarter-2023-oecd.htm)
The OECD also reports that Canada’s corporate income tax rate in 2022 was 15%, beating all but 4 countries. Canada’s corporate income tax rate is lower than almost all of Europe (typically around 25%) and the US (21%).
Thank you.
Michael
I’d like to add a bit of nuance to your response to Delbert on May 2 about Canada’s macro circumstances.
In your response, you state that Canada has a debt problem. According to the OECD’s 2022 figures (latest available), Canada’s debt to GDP ratio is better than Japan, Greece, Italy, the United States, Brazil, France, Spain and Portugal. (https://data.oecd.org/gga/general-government-debt.htm)
Again, according to the OECD’s level of GDP per capita and productivity, Canada is essentially tied with the OECD as a whole. (https://stats.oecd.org/Index.aspx?DataSetCode=PDB_LV)
In 2023, the OECD reports that Canada’s GDP growth was 1.5%, beating Germany, the UK, the EU as a whole, the Euro Area as a whole, Italy and France, and nearly matching the OECD Area average (1.6%) and the G7 (1.7%). (https://www.oecd.org/newsroom/gdp-growth-fourth-quarter-2023-oecd.htm)
The OECD also reports that Canada’s corporate income tax rate in 2022 was 15%, beating all but 4 countries. Canada’s corporate income tax rate is lower than almost all of Europe (typically around 25%) and the US (21%).
Thank you.
Michael
Q: Hello,
A few years ago I read that Canada was on it's way to becoming a tax haven similar to what is offered in the traditional Carribean countries. Although my corporate tax rate is ok(12% or so) I am finding equity erosion from currency devaluation/inflation, closing off capital gains benefits, etc is outstripping my ability to grow/preserve my capital.
From seeing some of the upcoming
coercion like changes w.r.t. taxation, private property, etc and an anti-saving/working/investment mindset that seems prevalent in the press makes one think Canada has or is becoming a very unfriendly place for capital preservation and growth.
Is this a new phenomena?
Thank you for your sage counsel.
A few years ago I read that Canada was on it's way to becoming a tax haven similar to what is offered in the traditional Carribean countries. Although my corporate tax rate is ok(12% or so) I am finding equity erosion from currency devaluation/inflation, closing off capital gains benefits, etc is outstripping my ability to grow/preserve my capital.
From seeing some of the upcoming
coercion like changes w.r.t. taxation, private property, etc and an anti-saving/working/investment mindset that seems prevalent in the press makes one think Canada has or is becoming a very unfriendly place for capital preservation and growth.
Is this a new phenomena?
Thank you for your sage counsel.
Q: Hi,
We own both Atd (3% position)and PKI (1% position). Which is the better company going forward? I am thinking about selling PKI and buying more Atd and maybe also adding to ENB(2% position) All these companies have had sizeable pull backs. Just trying to figure out what has the best potential going forward. No tax implications.
Thanks,
Kerri
We own both Atd (3% position)and PKI (1% position). Which is the better company going forward? I am thinking about selling PKI and buying more Atd and maybe also adding to ENB(2% position) All these companies have had sizeable pull backs. Just trying to figure out what has the best potential going forward. No tax implications.
Thanks,
Kerri
Q: Good morning; I read an article in the G&M on the weekend regarding the remote possibility (should Trump win) that they may change how the US Fed operates; affecting its independence and role as the world currency.
Crazier things have happened and with 50% of my investments in $US it got me wondering - if the US Finaincial system were subject to such change, which currency could/would replace it? I’d be interested in your view of the likely top 3.
Thanks very much,
Dave
Crazier things have happened and with 50% of my investments in $US it got me wondering - if the US Finaincial system were subject to such change, which currency could/would replace it? I’d be interested in your view of the likely top 3.
Thanks very much,
Dave
Q: Do you think the copper trade has legs for those looking to get in at this time? Thanks,
Jason
Jason
Q: With US GDP down and inflation creeping up, what is the FED to do now? Cut rates and inflation will increase. Increase rates and economy could crash. Are we headed for stagflation? In these times, how should investors proceed and which sectors do well and don't do well. For a long term investor like myself, how should we position? Thoughts? I'm high on Technology, Financials, Consumer cyclical, and Industrials. Thanks!
Q: Japan is showing some recent economic recovery. What are the factors responsible for that and is it sustainable? If yes than is it a good idea to add some exposure via an ETF?
Q: Regarding your comment in an earlier answer: "We expect market volatility in November. ".... Why?
Q: I have a 5% interest rate on my bank account right now and because of this I'm way more cash heavy than usual. Does it make sense to hold a larger portion of cash when interest rates are so high?