Investment Q&A

Q: Some talk of chances of fed engineering a soft landing are low. Inflation too high and it isn’t transitory and tightening will likely put us into a recession in 2023. Is a recession a very likely scenario for 2023?

Q: Between January and March of last year (13-16 months ago) I sold my bond holdings in ZAG and CLF and moved the money into the short-term bond fund ZST. As a capital preservation strategy it limited the downside from rising interest rates. ZST is down 2%, while CLF is down 6% and ZAG 9%. I saw an analyst on BNN this morning recommend it is time to start easing back into longer term bonds. It feels a bit early to me. Won't the short term bond funds benefit first from rising rates while the longer term funds will continue to decline? If capital preservation and rate of return are weighted about 50/50, what do you think of moving back into longer term bond funds at this time and would you do it gradually?

Q: oh Ross Healey....on Market Call.......yes Garth and another person, everyone has an opinion but Ross's is like outside the standard deviation and by a wide margin me, surprised BNNBloomberg invites the "heel" onto the show
I'll take 5IR anytime.......Tom

Q: I fully agree with your long term buy and hold of strong companies philosophy which is why I am so happy subscribing to this website.

Recently, I've been wondering how cyclical stocks like those above fit into that philosophy. I don't want to become a trader, but I am wondering if I should sell these at a relative high and invest in companies that are more likely to grow steadily over the long term. These ebb and flow companies seem more suited to a trader.

Given that investment strategy, would you sell companies like this at the good point in their price history?

Thanks as always.

Kevin

Q: the metals are taking a shellacking today, do you know the reason?

Q: Are there any indicators a recession coming?

I ask as nothing makes much sense at the moment. I run my own business, and there is a lot going on right now and feel the sand shifting underneath me.

COGS is going up like crazy, there is wage inflation, inflation in general, and interest rate increases on the horizon. I notice retail customers are bit slower than before and shipping is going up.

I don't get a good sense that things can continue like this.

I know inflation doesn't normally cause recessions, but interest rate increases can.

Should I not worry about it and just let my balanced portfolio go through the process.

Or do I position some Cash or more recession proof companies into my portfolio?

Sorry lots to unpack, but the Tea Leaves aren't giving me anything yet my gut feels something;)

Thanks Colin.

Q: Hi 5i!

Usually the CAD gets stronger compared to the USD when oil prices rise. This time around with oil above 100$ the CAD did not really follow suite. It does look like it has started to move up. In the short term( 3 to 5 months) Where do you see the CAD going. Any chance your amazing crystal ball see it going to 85C?

Thank you!

Q: Going forward for the rest of this year, what sectors do you think will do best in terms of growth and can out perform the broad market?

Q: I am a recently retired 60 year-old investor who has a DB pension, fairly large RRSP, and wish to hold off CPP until age 70 for maximum benefit.
So based on the above, even with some income-splitting, tax-wise I am going to get taken to the cleaners once I hit my 70's. I am planning to withdraw some RRSP money over the next 10 years in an attempt to lessen the hit.

Generally I am a dividend investor, but the dreaded dividend gross-up does further damage to my situation with regards to the OAS claw-back. I am wondering if I should be adding more of the growth type companies instead (eg. BAM, CSU, FSV) instead of adding to my dividend-paying stocks.

I know you are not tax experts and don't expect any specific advice, but do you have a general opinion on a retiree balancing their mainly dividend portfolio with some growth? I always thought dividends were taxed better than capital gains, but that gross-up is the enemy here.

Q: I have to move $100K into my RSP for corporate tax reasons. I have been waiting for the market to settle. I am in no rush just have to do it before October. I know you can’t time the market but thinking about making the transfer and then slowly buying over the next while as the ups and downs are not as big as they have been over the last many months. Your thoughts on this?

Another option may be purchasing a few ETFs both growth and balanced. I have no ETFs to date and think this may be an option, any suggestions?

Q: Given current market volatility and the increased speculation that we are headed into a recession, what are your top 5 defensive stocks with reasonable potential for growth in Canada and US. Could you include good entry points for each.

Q: If one was to assume the Fed is going to need to be tougher than expected and they will have to be more aggressive (regardless of 5i stance), what sectors can maintain/improve their earnings growth and which could be expected to have the earnings expectations lowered from current levels under that scenario?
Thank you as always!

Q: Should the stock prices of energy , agriculture, metals and materials shares hold up in a time of higher interest rates, inflation and possible recession

Q: Hello, Recently I had watched a few YouTube videos on Ray Dalio’s new book called the New World Order. I know there is always something to worry about, but, is this something an investor should worry about in the next decade to come ? Basically, the book is about how a new reserve currency will replace the US dollar as the reserve currency. Have you guys spent any time thinking about this as an Canadian investor or what the implications might mean if he is correct ?

Q: I have been sitting on the sidelines in cash since the beginning of the year in both my registered accounts. I am retired and living comfortably on pensions. I thought that this weeks fed decision would be the time to reconsider deploying my cash. In the meantime Russia invaded Ukraine. I read the daily comments and I'm seeing mixed messages e.g. by on the decline, buy into the fear, time to begin making your money work, which have all suggested that I should have been slowly reinvesting over the last several weeks while the markets have continued to decline. However other comments have suggested waiting until markets calm down.
I would prefer the latter suggestion of waiting until things calm down. Other than peace in the Ukraine, what should I be looking out for.
And re the mixed messages what would you do in my situtation, other than I should have done nothing at the beginning of the year!
Thanks Peter.

Q: Further to questions regarding capitulation, and if today gains hold, would you consider we have reached a bottom on this correction. I have been patiently waiting for a entry point to get started with some of the losses incurred.
Thanks
Rick

Q: Chinese vice-premier Liu He said China will boost the economy and introduce policies that are favorable to the stock market. Also China seems to be work with the US on delisting issues Chinese stocks.
Do you think it will shift the sentiment of Chinese stocks? Could it be the turning point?
Thank you!

Q: I feel a bit lost and don't know what to do. Many of the stocks I own are down, some by a lot. Oh yes, it has been painful. Thinking of the long term, I did very little when the carnage started, and waited for things to settle. Perhaps they have or are getting close and I am getting ready to figure out what to do. But it is difficult to come to grips with some of the large losses, especially in holdings that I previously thought were pretty solid. For example, MG and PBH (and a number of others) . I see there are questions about these 2, so I am not looking necessarily for info about them; but more, do I sell stocks that I thought were, and still think are, good long term holdings, to move to other stocks that are said to have, currently, more potential? I see your comments about not sector jumping. But how do I adjust, if I get past my pain?

Though some are from registered accounts, there are losses in taxable accounts; how much consideration is to be given to that issue?
Many thanks for your excellent service.

Q: I have read an article, in a couple of papers, stating that buying the dip, while profitable in the past, is no longer a good idea. Comment?
Thanks Rose

Q: Wondering what 3 or 4 Canadian stocks you would choose to buy in a non registered account now, waiting for a full economic re opening and a settlement on the Russia -Ukraine conflict?
Seems energy, financials and materials are at highs. Tech is beaten up.
MG and SHOP come to mind. Any others you would suggest?
Thanks
jeff