Investment Q&A

Q: Is inflation finally under control?
Will we have a recession? How deep could it be?
Are our banks safe?
Are we losing control of our country to others that seem to play by different rules? We just kicked a Chinese diplomat out of Canada for threatening the family of a member of the Canadian parliament. How will China retaliate?
Russia is still at war against Ukraine. How is that impacting the world economy?
Climate change is threatening economies in counless ways. Almost all negative.

So here's my question. In your opinion, what Canadian and global companies offer a service so necessary or a product that is in such high demand that they will persevere in these troubled times and make profits for their investors?

Q: With the energy sector on pause, is precious metals a good replacement, or can you suggest another. I generally buy on momentum.

Q: What do you think is an appropriate cash allocation of one's liquid assets in the current market environment with some recession and US bank crisis contagion/debt ceiling risks? (Recognizing you can get 4% interest in high yield cash etfs) I recognize this is a personal question so please assume à 34 year old professional with a long term investment horizon.

Q: Why is the VIX so low just weeks prior to a politically driven US debt crisis. A similar crisis in 2011 exhibited extreme volatility until an agreement was reached . In the short term downside risk seems more probable than markets going up. You cannot time the markets but what would you suggest as a near term strategy to protect your portfolio.

Q: During the early weeks of the pandemic (March 2020), my portfolio results - namely Canadian holdings - experienced 3 days in a row of my worst stock market performances EVER. These worst ever performances were approximately 3 times as BAD dollar wise as my BEST ever daily performances. I do understand the immense irrationality of those times, however is this excessive variance in performance a semi normal occurrence where your worst performing days are multiples of your best performing days? For reference purposes please consider that my largest holdings were and are BCE, T, TD, WSP, CSU, ENB, AP.UN, ATD, GIB.A, XBC, and IPL.UN(at that time).

Thank you for your response,

Dean

Q: I am trying to understand what seems to me as unusual volatility in treasuries recently - especially Monday. Has this sort of thing happened in the past ?

Q: Hi Peter,
I have over 6 figures to invest for 3 or more years for a Canadian holding company and am looking for suggestions to invest in each of the sectors, in a combination of ETFs and stocks. I would like to be more tax efficient where most of the returns would be in capital gains (total returns are mostly in the growth of the stocks, less in dividends). Investments can be in any geographic areas. In terms of risk level, I am comfortable with your balance portfolio approach, where it has some elements of growth.

One example I have, closer to income than growth, is HXH-T. It is a dividend ETF, low MER cost, with beta of < 1, pretty risk adverse. The price of the stocks is the index it tracks plus dividends.

Thank you,
Roger

Q: Given the current economic climate and potential future trends, which industries or sectors do you believe are well-positioned for long-term growth in the stock market, and what specific Canadian and US companies within those industries or sectors do you believe have strong fundamentals and potential for long-term momentum?

Thank you!

Derek.

Q: One commentator said the recent spread of PPI to CPI is in negative zone. It might indicate the stock market can go down a lot . Negative spread happened in tech dot com bubble and sub prime crisis. Please elaborate. Thanks a million.

Q: What headwinds could cause the equity markets to roll over and perhaps drop 5-10% in the next 6-12 months? Thinking of raising cash levels. many thanks...

Q: This is a broad market query….
What is the impact of a recession on equities in general? Specifically which sectors are likely to decline the most?

Q: After a bear market at what point in the cycle do small caps recover? Do you think this will happen anytime soon?

Q: I just noticed that someone already asked the same question as me regarding the US dollar reserve currency standing.
The only question I still have is if the above changed to say the China Yaun backed by gold, would all Western currencies take a big hit?

thanks,

Paul

Q: What sectors do you prefer for the next 2 to 3 years given that the markets remian somewhat volatile?
Thank you
Tim

Q: Good afternoon, it's been some time since I rebalanced my portfolio, and I'm wondering if I could get an update on how you would weight the various sectors on the TSX at this point in time.
Thanks

Q: Do you think that the alliance of China, Russia and Iran and these countries as well as others starting to use currencies other than the US dollar for trading commodities is the beginning of the end for the dollar as the reserve currency? If so what are the implications for the value of the dollar going forward?

Q: In reference to the following question: "Please provide an overview of your thoughts on best sectors to be invested in for growth in next 12 months. Ranked highest to lowest. Thank you."

You replied "We think this order will work in the next year: Industrials, tech, consumer discretionary, energy."

Can you please shed a few words re your reasoning. Thanks.

Q: I am looking to initiate a position in Canadian Telecoms and noticed that only BCE is present in your Income portfolio (4.5 %). Nothing in Balance or Growth. No Telsus either. Could you elaborate your reasoning please.

Q: Everyone, IF (speculation) there is a collapse of the current government in Russia what would happen to the markets in the short term, say less than 6 months. Clayton

Q: Hello 5i
1. Do you think a recession will occur within the next 12 months, and if yes, when?
2. Do you think the US debt ceiling issue will cause the CDN stock markets to drop, and if yes, by how much?
Thank you. Ron L