Investment Q&A

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

Q: Hello Peter,
Thank you for your suggestion to have some silver in the portfolio. It got life just when I was considering an exit . This question is also somewhat related.
I am beginning to think that Energy and Commodities have got significant room to run this summer. I am overweight technology and overweight semiconductors within. All my favorite growth stocks besides UPST.
To increase my portfolio in energy and commodities I need to reduce technology including names like NVDA AMAT GOOG etc. I am thinking that the tech sector will not react violently to the upside and there will be sufficient time to rotate back from energy and commodities.
However, I also feel that just when I throw in the towel, the market will find support and bounce back. I do believe in their long term future but perhaps not a bad idea to trade the trend for now. I am on the fence with financials too at the moment, what with the war, asset freezes, bans and Powell tempering his tone.
What would you suggest to me.
Regards
Rajiv

Q: A few days ago I asked about a stink bid for Shopify, and your feeling then we had not evidenced capitulation in the market. What is your feeling today, do you think and feel we have reached a bottom ?
Your thoughts would be most appreciated.
Thanks
Rick

Q: My portfolio is moving in a V direction quickly. Growth on the decline and O&G, materials and gold moving up. I'm still comfortable holding the growth names I own. With the "let your winners run" theme in mind, I will need to rebalance soon which seems to be an impossible task in the current environment. Any advice? My train of thought is to wait till things settle in and then make a decision.

Q: Would you be more inclined to buy stocks that have momentum (such as oil, gold etc) or tech stocks that have been beaten up from their recent highs?

Q: I see bond yield on 30 year US paper around 2.25%. Does it not heavily support the return to lower inflation in the short/medium term?

What's your projection (best guess) for inflation in the next 3 to 5 years? Thank you.

Q: Everyone,
My investment strategy is to hold long term and hold the best of the best. I have not sold any of my tech stocks but I have recently been a buyer. The only thing that has changed in the last six months is the price people are willing to pay - for each seller there is a buyer! The noise will pass someday - I don’t know the day but it will pass.
Clayton

Q: In line w/ sentiments expressed in the latest market update (thank you for that), would you put any of these names in the "likely beyond repair column"? Or do they all fall firmly in the "damaged but not broken" column?

Q: If Ukraine and Russia reach a ceasefire say in the next ten days, how will the stocks in energy, gold, agriculture and financial sectors react to this new reality.? Specifically will they move fairly quickly, or with a different pace? What other sectors might be worthwhile to move into. Thanks for your valuable guidance. Please deduct as many credits as you deem fit for this broad question.

Q: I know the environment is iffy, but with tech on sale, and other tech (also on sale) flush cash, when do the bigger fish start gobbling up the smaller fish, and what, in your opinion, is holding them back? Thank-you.

Q: What is the current % weighting in the Tsx of energy producers,pipelines.
For an all Canadian equity portfolio what % would you recommend in each of the above for a long term hold?