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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: With heavy losses in margin accounts do you think only BANKS AND INSURANCE companies will benefit from rising interesr rates?
Read Answer Asked by Nizar on October 16, 2022
Q: There is a thought that the equity market will improve once there is an outlook for interest rates to decrease or at least not continue to rise. I recently heard a discussion that suggests this is not the end of the story because the turn in interest rates will only happen when inflation is brought down and that inflation will only come down when businesses cannot increase or will probably have to lower prices. When their prices go down, Corporate profits will drop significantly. It seems to me when Corporate profits are dropping, equities will fall even more, and as such there will be a long time to go before the market recovers. Your comment about all this please.

Many thanks.
Read Answer Asked by Leonard on October 16, 2022
Q: My US ETFs are a significant percentage of my portfolio and are unhedged. Given the strength of the US dollar, do you think it is time to consider selling these investments to purchase the hedged versions? Do you think the US dollar will continue to strengthen against the Canadian dollar or will this trend reverse?

Thank you for your excellent advice.
Read Answer Asked by Dale on October 14, 2022
Q: I read an article last night talking about if you had purchased AAPL stock on it's IPO 42 years ago at 22$ and invested 10G at that time and held until now the value not including the small div they pay would be roughly 14Million$ after all the splits your share count went from 400+ to over 100,000+ shares.. I know it is a tough call and this is more of a fun exercise but could you name a few companys/stocks that one day may return something like this over 30-40 year time block Canadian or USA..

Thanks
Read Answer Asked by Kolbi on October 13, 2022
Q: if SMRs [ small modular reactors ] take off , what businesses and spin off companies good really benefit from power producers of this sort ? thanks , have a super week.
Read Answer Asked by jim on October 13, 2022
Q: We are a retired couple (63,62), living in our paid-off house, no pensions, with only registered RRSP investments to fund our retirement, drawing down RRSPs for last 5 years. We are concerned with our YTD RRSP return (-15%) in our Balanced/Growth portfolio (85-15).

In general terms, given current market conditions/recession risk, what asset allocation would you suggest going forward? Thank you.
Read Answer Asked by Paul on October 13, 2022
Q: It seems that a lot of the financial press seems to expect a rally when the US Fed stops increasing rates. Wouldn’t this rally just be another bear market rally? We would still have to enter recession, perhaps in Q2/Q3/Q4 of 2023. The actual rally that sticks, ie. the beginning of the next bull market, would be the one predicting the recession’s end and the subsequent rise in earnings right?
Read Answer Asked by Michael on October 13, 2022
Q: Hi 5i:
I've been away for a while and not keeping up with Questions, so this may already have been asked and answered. if so, please provide a link to the answer.
I'm hoping you could advise what sectors you think will reverse the current trend and begin to appreciate in value more quickly than others and, also, if you could identify three or so names you would expect to 'lead the charge' in each of those sectors.
If time and space permit, any commentary you might have regarding each identified sector and/or name would be appreciated. Thanks!
Peter
Read Answer Asked by Peter on October 13, 2022
Q: I am sitting on significant cash holding. I understand that predicting the bottom is not a strategy, but I am looking at taking advantage of the recent pullback.

Given that most predict we are heading into a recession, is deploying 1/3 of the cash at this point a good strategy and deploying the remainder over the next 6 months.

I am looking for Income and growth over the next 3 to 5 years. I was looking at FTS, BIP, SLF, ENB, AQN, RY, TD, BCE. Is there any of these names you would not buy now?

Thanks
Tim
Read Answer Asked by Timothy on October 12, 2022
Q: We are holding cash to invest. Do you think the market will steady in the near future or should we keep holding cash for a better opportunity to invest it. Do you have any time line in mind.

Thank you
Read Answer Asked by Vicki on October 12, 2022
Q: Hello, Most Banks and Utilities got hammered today mercilessly and stocks in these sectors made new 52 weeks Lows. Any specific reasons, in your view ? Energy has held very well and Tech sector appears to have found a bit of a ground. Treasury/Bond yields seems to have resumed their upwards trend after a brief 2/3 days pause. Many Experts (5i included) have indicated that there was a lot to feel good about in the two days of market rally, including strong market breath, the VIX topping at 34, on Friday etc. Do you think, it's not All Clear yet and market could test new lows ? Thank You
Read Answer Asked by rajeev on October 07, 2022
Q: General question: About how far forward does the market look. Per another question asking whether we are nearing the bottom (I know no one can accurately predict it). Looking out to mid 2023, I see a recession and lower corporate earnings. Looking to late 2023 and into 2024 I think we may be in a more robust corporate environment if Central Bank mandates start working.
So, if the market looks out approx 6 mths, we may be seeing more downside. If the market looks beyond and see's better days, maybe we are nearing the lows...?
Your thoughts, thanks!
Read Answer Asked by Harry on October 06, 2022
Q: In the next two quarters, earnings will likely deteriorate in both the US and Canada as the effects of the fastest rate hikes in history start to apply. If these earnings seasons are ugly, will the market decline further? Or is the positioning of the fed (potentially pivoting/easing/stopping rate rises) more important than this?
Read Answer Asked by Michael on October 04, 2022
Q: Hi there,

I am sitting on about 35% cash currently that I accumulated in mid August before the indexes rolled over (SPX ~4200). Obviously no one knows where the bottom is, but if you had to make an educated guess, where do you think the SPX will bottom out and when? What strategic would you use to deploy cash? Would you DCA over a couple tranches?

Thanks!
Read Answer Asked by Michael on October 04, 2022
Q: With tax selling season coming though a lot of selling have already happened. This also coincides with the FED's next Interest rate change, November seems gathering a lot of dark clouds. It just feels that the rest of the year is wasted and preventing a Santa Claus rally not much will happen from now to the end of the year.

What do you think? How do you see the rest of the year unfolding?

Thanks for your precious advise in these dangerous times.

Yves
Read Answer Asked by Yves on October 03, 2022
Q: If Russia drops a nuclear bomb in Ukrainian territory ( a scenario becoming more likely every day ), the question of whether a company’s stock has a compelling P/E ratio is irrelevant.

Forget inflation, forget Covid, forget Trump, forget budget deficits, forget supply chain. Follow Russia/ Ukraine.

Please help me to decide not to sell everything, stock up on cans of beans and head for the hills.

Thanks
Derek
Read Answer Asked by Derek on October 03, 2022
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