Investment Q&A

Q: Hi Team,

On a scale of 1 (nothing alike) to 10 (identical) how do you rate the similarity to this tech meltdown with the late 2018 version?

Thanks

Q: when the stock market drops like it has during January 2022, I wonder who is selling???


is it dominated by traders, aka those jumping ship for future positions down the road, or retail folks bailing out of an ETFs in great numbers or institutional investors like pension plans which would surprise me?

what is your take?......I ask this as it is a head scratcher for me, especially as it isn't like other declining sessions in the 2000 era but rather about
expected rate increases and, to some extent, inflation in the short term

..........thanks for your insight.....Tom

Q: Hi there,

I am seeing an increasing number of questions from people looking to exit their technology holdings and wonder (as I read your banner at the top of the page about doing nothing) if now is perhaps too late to be exiting. I understand that people may look for safer havens but I would like your opinion on whether or not people with a 5-10 year horizon and an appetite for risk should be scaling into many of the higher quality names rather than selling at what appears to be nearing a bottom. I can't help but think of so many who bailed out of oil stocks when things appeared dire and then didn't get back in for the massive rise.

Q: What do you think will happen to the Canadian dollar vs the US dollar when the Bank of Canada eventually raises interest rates?

Do you think there are any other short-term factors that might significantly affect the Canadian dollar vs the US dollar?

Q: Hi there, your comment is very true regarding the following;

All views should be considered and taken into account but this group has been quite bearish for probably a decade now, so eventually they will be right. We have a hard time imagining a 50% market crash. For context, the S&P 500 trades at about 20 times forward earnings, so a 50% drop would lead to the S&P 500 trading at 10X. Of course, earnings could also drop but we are not sure we see a high probability scenario where across the broad spectrum earnings/profits get cut by such a large degree.

However, your last sentence is what intrigued me the most! And looking forward, as the markets always do, maybe the markets foresee three quarters ahead for this year, and revenues/earnings/profits won't be as robust as they were for growth companies now that covid is really in the rearview mirror, with vaccines establishing normalcy (the new normalcy that is) going forward once again!

Thoughts looking forward six to nine months ahead for growth companies?

PS: Growth Companies will no longer get an easy pass any longer (as they have during these crazy Covid times), they are going to have to truly prove themselves as being relevant going forward, earning a buck or two or three..., in a cut throat world competing against one another! Everyone is done with Covid... and its time to move on with normalcy once again, as best as we all can, including the markets! :))

Q: Gentlemen: With Gold, Bonds, Money market funds, CDs, Emerging markets and cash all paying less than inflation, diversifying a portfolio to say 50% non equity as advised with aging, is a joke…. Where do you recommend looking for 2022?

Q: Do you think we are near capitulation yet, today Monday? Markets are really down!

Q: How do you see these companies perform in a rising interest rate environment?

Q: Is there a reason for the selloff today.
PB

Q: When higher interest rates eventually actually happen in the US, what do you think the initial reaction will be for semiconductor stocks? Will the first reaction be a dip, or perhaps they might move higher?

Are there any other events, such as an invasion of Ukraine, that you think would significantly impact the semiconductor stocks in the short term?

Q: Hi guys: If stagnation did appear later this year, what would be your top 5 U.S. and Canadian stocks?

Q: Hi Everyone at 5i! Me again. With your crystal ball on the table , how do you anticipate our Canadian dollar doing over the next few years?
Cheers, Tamara

Q: Hi All at 5i! Was the market run up in 2021 in anticipation of the pandemic being over, now contracting because the recovery is dragging on? Cheers, Tamara

Q: Hi Peter/Ryan as an investor and not a gambler who's tried to make a buck over the years doing what's right, investing in good companies having a properly balanced portfolio to not risk loosing it all, what chance do we have when this Jeremy Grantham comes out and makes a statement about the stocks collapsing. That alone can cause people to panic and sell, no? Thanks, Nick

Q: Re your response to John, January 17th, you answered "it's hard to beat a single great company that compounds year after year".
Could you please recommend 5 Canadian and 5 US companies that fit into said catagory that have declined recently due to the tech sell off, and represent a good buy/nibble point,
Please include a mix of larger e.g CSU and Google, along with more recent up and comers e.g. Shop and Roku, which seem to be among your most obvious favourites.
Thanks Peter.

Q: I read a lot about the Market online and through the media and I am seeing numerous who have claimed to have predicted such downturns as the 2008 and 2020 and who are saying that this one will be 30% plus before the end.

There have been a lot of downgrades lately and most recently being AMD and XPI. What is your take on this?

Thanks so much and hoping to get some insight into what is going on now.

Q: Hi 5i Team,

Jeremy Grantham in an interview on Bloomberg said he is certain of a coming crash in financial markets. Given the fact that he has been right in calling the Japanese bubbles in late 80s, the tech bust in 1999/2000, the housing bubbles in the States in late 2000s, I would like to get 5i's take on his call.

(I understand that he has been a shrew investor for 50 years and a crash caller for just as long. I suppose if you keep calling for a crash long enough, eventually you're going to be right on a few occasions. Just my thoughts).
Cheers,
H

Q: The market has been weak since the start of the year with the NASDAQ down over 10% from its November high. I don't own any not profitable tech, but I do own Shopify. Seems like the market is fading into the close the last few days and can't sustain a rally. Does this suggest more downside on a waiting pattern until the BOC and FOMC meetings next week. If history serves, it seems like these tightening cycles always overshoot in anticipation of the start and then settles out a bit. I guess the big difference this time is inflation and whether it moderates or forces the Fed to keep tightening. Thoughts?

Jason

Q: I am a little embarrassed to admit that I am in all tech and growth companies. The rhetoric now about the interest rates, the war activity in Ukraine/ Russia, Threat of invasion China to Taiwan. Inflation and other factors that create the current environment. The question is boiled down to when do we see big tech i.e. MSFT, Tesla, NVDA and little tech : EGLX hit bottom and make gains again? CNBC Tom Lee Fundstrata says first half is volatile and choppy and the second half of 2022 we see gains and steady improvement. How low does the Nasdaq go before a upwards turn?

Q: What be the short term impact on the TSX of an actual physical invasion of the Ukraine by Russia. I find that the markets seem to be ignoring this real possibility in the near future given Russian influence in the worlds energy market.

Edward