Investment Q&A

Q: I am wondering about my cash position. Given so many things affecting investor confidence how long do you expect to maintain the cash levels in each of the three model portfolios? What might cause you to make changes?

Thank you,

Mike

Q: Can you give me the symbols of ETF's that matches the movement of the tsx 60 , SP 500 and the NASDAQ. With the lower mer or fees. Thanks .. Borrowing money to invest on the stock market was something that was getting very popular. With interest rates now at normal rates in my view I believe this will end. Our economist drop the key interest rate at the beginning of covid to reduce the risk of a recession. In 2022 these same people are raising the interest rates to prevent inflation. I believe they will not succeed. I wish I had a company that could right out checks and not needing any funds to pay them. Only or government can do this.The same people that are raising and lowering or interest rates. Imagine that. Thanks for the great service but with 122 credit questions I guess I'm not using your services to the max. You guys are great happy new year.

Q: The Bank of Canada hiked their policy rate 50 bp's today - will this be priced in to Fixed Income instruments (GIC's/Bonds/TBills etc) immediately or would it have already been priced in in anticipation.
Thanks

Q: If only one was to be added to right now which would you pick? I have both at at a higher cost. Are you expecting a bounce in January? Thanks.

Q: Is the current inverted yield curve predicting a recession in the next 6 months? Regards, Ron

Q: Retired, dividend-income investor. I harvested some ZRE related tax losses in my Cash account in October. I am now rebuilding a position in my wife's TFSA. I was planning on 3 tranches, every second month (using your suggested "spread out your investments over a 6 month period). I bought my first wave a week ago.

Now that Chairman Powell has made his recent remarks about the potential slowdown in the rate of interest rate increases, does this change your thoughts about the pace of investing new monies into the market? Would you endorse accelerating the injection of new $$$....specifically for ZRE?

Thanks...Steve

Q: The first ones to forecast next year results are Goldman Sacks and they are pretty bearish on the stock market. They forecast the S&P to finish the year at 4000 after picking up steam in H2 while the first half should be down while traders will adjust their premiums with no gain in profits next year. Do you agree with their thesis? Where do you see the better overweight. In US with blue chips or smb ? Canada with oil and basic material? Look for dividend to try to make some yield? Please elaborate on your rational. Thanks a million$$$

Yves

Q: I am wondering what your thoughts are on annuities for a retiree, assuming no need to leave wealth on passing. Also assuming two scenarios: (1) putting all one's money in annuities, and (2) a small portion to ensure not ending up homeless while investing the rest in high risk growth stocks. Okay let's add a third one, a well balanced portfolio all in equities a little light though on dividends, with a floor protection of annuities. Talking about a straight life annuity, nothing fancy. Thank you.

Q: Which sectors and stocks will benefit from it.

Q: Do you think this is a good time to buy value stocks? If so can you name 6 Canadian Stk.

Q: Rosenberg posted this to Twitter today. 60/40 split is not dead.

David Rosenberg

An early holiday gift: Don’t look now but the much-maligned 60/40 asset mix has delivered a +7% net positive return over the past month! The phoenix is finally rising from the ashes.

Q: I'm keeping a tidy amount of cash etc on the sidelines for 2023.


David Rosenberg

I saw a chilling stat today that 20% of Canadian mortgages were taken on when rates were at the 1.5% floor. With mortgage rates at 5%+, and 40% of this debt rolling over, the hit to consumer spending promises to be spectacular.

Q: I noticed in one of the recent comments that you are selling lightspeed to raise money for later in the year. Is that because you think that there is a good possibility of stocks dropping in the New Year? Better to wait to deploy cash or right away?
Thanks

Q: A conundrum....
As with most investors, I have winners such as 'ATD', 'CSU', ';TFI' and 'WSP'. Because of this delightful phenomena, they now represent a much higher percentage of holdings than they did at purchase. I am reluctant to admit that I also have 'losers' such as 'ECN', 'LSPD', 'GSY', 'TCN' and 'SHOP'. Obviously their portfolio percentages are much lower than at purchase. I eschew selling winners, so please help me out in terms of re-allocating the broad spectrum of stocks, i.e. sell fractions of the 'winners' and average down on the 'losers'?

Q: It looks like FED and BOC will keep on rising Interest rate and recession will follow,reducing income for many companies and their stocks will go down like in last recession. This is how I think,what is your opinion.2022 has been a tough year and hope for 2023 is in question.

Q: Peter; What did I miss this am. Markets are up across the board- ( except CTS ) did inflation drop to 2%? Haha. Rod

Q: Hi Everyone at 5i!! Today was a good day in the markets, but I can’t help but feel that we have more head winds coming our way. David Rosenberg says that this is a bear rally and we are headed lower. Your thoughts??? Cheers, Tamara

Q: On the question of US inflation, I'm a bit puzzled as to why more isn't made in the media of the recent monthly cpi data and that instead the focus seems to be on the annual cpi for the last 12 mos.

The following are the percentage changes for US CPI for each of the 12 mos ending Sep 2022 (starting with Oct 2021 and ending with Sep 2022, unadjusted for seasonality):

0.831% 0.491% 0.307% 0.841% 0.913% 1.335% 0.558% 1.102% 1.374% -0.012% -0.035% 0.215%

Looking at the last 3 months, inflation would indeed seem to be well under control given 2 of those mos show deflation. And this is using the Fed's preferred metric. Even the positive Sep figure annualizes to only 2.6%.

One hears much criticism of the Fed for not using current real time non-cpi data and that current inflation is really lower than the 12-month cpi and yet just looking at recent cpi data would make the point.

Also interesting is that according to one article economists are predicting a 7.9% US CPI print on Thursday for the 12 months ending Oct 2022. This would require an Oct 2022 cpi print for the month of 0.51% - quite a hike from recent months.

Any idea why there is not more consideration of recent cpi data, at least by talking heads if not the Fed? Thanks.

Q: Dear 5i
From what i`ve read over the years , it is my understanding that for every 1% increase or decrease in interest rates there is a corresponding 10% increase or decrease in bond prices . Is this generally accurate ?
If so would it be advisable , once it is believed that interest rates have peaked , to purchase a bond ETF ( with longer term holdings ) ? If so what would be your bond ETF of choice ? That being said if interest rates have indeed peaked it would also be favourable for stocks as well . As such i suppose the best scenario is the add to both with new money . Do you agree ?
Thanks as usual ,
Bill C

Q: Hi Team,
For this question I will reference TWLO, and Unity but really this is more of a general question. Unity used to be a past favorite. Now it seems, that 5i and the rest of the investment world is so negative on it. I am an investor in both these names and have been killed on them so far. Both were bought with a long term view in mind and both were considered at one time to be at the "heart" of future tech in their niche. Unity with the 3-D tech in gaming and other applications, twlo with its digital communication of things. Has this story really changed? Is it worth dumping these names now after 80% haircuts? In 10 years will we look back and say, Dam! Why was I selling these names and not buying? (oil stocks 2 years ago) . I note that Cathy Woods continues to buy both Unity and Twlo almost daily. Today she loaded up after Twlos big sell off. Same with Draft Kings. If she's buying them they must be considered on the forefront of future tech according to their firm. Not sure what her credibility is like these days due to the downturn, but at one time I thought her research was pretty good. Shes doing pretty much the opposite of the market right now. Who will be right in the end? It seems she will either be a hero at the end of this, or her funds will be toast one of the two. The market is a brutal place right now in the Tech sector and very frustrating. It's painful to watch the same analysts now dumping names where only a year or 2 ago they were praising the companies as innovators and pumping them for their future prospects in a growing digital world. It's not a wonder why people get to hate the stock market and trust no advisers. Some say big firms on wall street almost orchestrate this kind of thing, flushing out the little guy scooping up their shares so they can buy them on the cheap, knowing down the road they will make a killing when momentum shifts. (Conspiracy maybey, but sure seems to happen this way over time). Your thoughts on things as a whole would be appreciated. Thanks!

Shane.