Investment Q&A

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!

Q: Could you please tell me which 3 GICS sectors you would expect to outperform over the next 3 years (excluding Technology), and a brief explanation of why? Also, could you please give me your top two stock picks (not ETFs) for each of those sectors ? Could be US or CAD stocks but I am looking for stocks that also pay a dividend. Greatly appreciated. Thank you.

Q: In the latest Money Saver John De Goey presents the thesis of "A Minsky Moment" Other sources have also stated that a hard landing is expected. I have stayed through all the past bear market and came out more or less unscathed by not registering a loss but have lost 40% upside. Is it time to get out at 77 years old and put my total inot CASH.TO and of the same ilk or continue to stay the course. If These are scare tatics then they are working by entertaining consideration.
Thank you for your great service

Q: Where does the suggested percentage allocation by sector for the equity portfolio come from?

Q: with the deficits that the Canadian government has been running and the money that has been given away to situations that will never yield anything back to Canada , at what point would you expect our currency to significatly devalue or simple turn into Monopoly money ?

Q: Hey Guys,

- I'm trying to help out a family member that is 67 years old, that is not financially literate, has no investments, no savings...
- He will be receiving approx $ 80k in an inheritance in the next 6 months...

- He Already blew through a previous inheritance of over $100k in about 3 years

- I am setting up a TFSA Investment/Trading account for him and doing a Financial Intervention , So To Speak to get him Back on track...

- His minimum basic expenses like rent is covered by payments he receives..., But additional living expenses and extra income is what I want to help him with and extend the life of the extra inheritance he will be receiving...

- The listed stocks are the ones I am planning on recommending for him to look at and research...

- Please comment and suggest other stocks and investment ideas to consider for:
- Considering His Age and Small investment of $60k

-Looking for:
- Somewhat Safe/Bit Aggressive Growth
- Preservation of Capital
- Income

***Not looking for total financial planning here, But I'm Looking for Ideas to look at and suggest in this type of scenario...
- You Suggest, I Research further and my relative decides...

Thanks

Q: on Jan.24 I asked for a% by sector for a balanced portfolio and then on the 29th for a % by sector for a growth portfolio. You gave the same answer for both. Is this correct, I would have assumed tech for example would have gotten a higher % in the growth vs the balanced

Q: Hi Team,
I hold NVDA and SHOP with some great gains after buying the dip in the fall of 2022 (thanks to 5i!) . My question I suppose is more of a broad market question. I went through the rise of tech in the 2020/21 blistering rally, and also held through the subsequent gut-wrenching fall. Luckily for the most part I held on to most names and am now riding high with my tech heavy portfolio. Are we flying too close to the sun again so to speak with some of these names again? Should I be selling some of the higher flyers such as NVDA? Or should I just ride it out? I have trimmed some NVDA a while back and re-allocated it into BN for some more diversification. After watching my portfolio crumble in 2022 I just don't feel like going through that again (if we feel that the tech sector is overvalued). If valuations are justified; however, I am willing to keep holding. I won't be retiring for another 10-15yrs... unless I really have some massive winners that is! Just looking for an opinion here.

Thanks,
Shane.

Q: what is 5I,s suggested % allocation by sector in 2024 for a growth portfolio

Q: Could adjust your answer Ross's question on sector allocation for the following: 0% to real estate due to large equity in personal home, and a bit less conservative (no need for income from portfolio for 10 years).

Q: Hello:
Question asked by Ross Jan 24-- Sector allocation %'s. Materials is listed twice at 5%. Should this be 10% for materials?
Thanks, Ben.

Q: What are likely to be the most durable investment themes for the next 5-10 years or more, and what would be the best ways to play them?

Q: what % allocations by sector is 5I recommending for a balanced portfolio in 2024

Q: There is a lot mentioned about digital currency being adopted by central banks - last heard to-day on Michael Campbell's show, Replacing fiat currency? In which case the central banks and by extension governments or their agencies would be able to control what we spend it on and monitor us in terms of their political agenda - a good example is this climate change fiasco whereby they use it to tax us. What do you think the mechanism would look like to replace fiat with digital? And, how would gold pricing be affected - increase demand and thus the price?

Q: May I ask a follow up to my using a 20DMA as a potential entry point for a stock purchase. I picked the 20 day average because when members ask for suggested entry points you seem to respond with values within 2-3% of the current stock price. I agree a 50 day average has more of a margin of safety, but seems to be more value oriented and the stock may never drop that low within a shorter time frame. Thank you

Q: Regarding the question asked by kel today re ranking the sectors can u give a brief rationale for technology industrials utilities financials and healthcare