Investment Q&A

Q: do any of you have an opinion about what will happen if inflation continues and the government and banks refuse to raise interest rates any meaningful amount or at all ? and if this should happen , what should we be investing into ? thanks and all the best for 2022.

Q: Hello 5i!

So I am a little overweight in technology and feeling the burn a little over the last few months. I am considering re-balancing but am wondering about timing (I know, its impossible! lol)
You have commented that the Q4 is typically good for technology stocks so would you anticipate that they may see positive momentum in the next month or so? I realize you don't have a crystal ball but just based on general market patterns?

Also, what is the general window for Q4 earnings reports? ( end of Jan to end of Feb?)

Lastly, a sincere thanks for all you folks do. Your expertise, education and general good common sense have made a world of difference to the whole 5i community (and their families!).

Wishing you all a healthy and happy 2022.

Q: Can you please tell me what the total returns were for the S&P 500 and the TSX for both 2021 and 2020? Thx

Q: hello to 2022, 5iR.......and for me, back to the regular lifestyle of reading first thing in the morning, 5iR Answers to Questions. Now that it is a new year, what are your top investment predictions ........yea, a tough Question given so many uncertainties, right?!...........Tom

Q: I know you tend to espouse wide diversity in the market and no stock greater than 5% of the portfolio, which I respect and understand, but if one were to overweight a sector (or sectors) what would you choose?

Q: I paid a lot more attention to my investment approach this year, and obviously used your service to make a lot of my decisions, slowing trying to align with the recommendations of your portfolio analysis. I currently hold 25 different stocks.

Looking back at 2021 my overall investment return was 21.41%, slightly lower than the TSX Composite Index of return of 21.74%.

I'm not unhappy with that return, obviously, but I'm wondering given my level of success if I should be simplifying my life and just moving to a few ETFs to cover appropriate geography/industries and forget about it.

This is probably a hard question for you to answer but you might have some insight.

Q: Can I get your view on Cad$ versus US$ for this year. thanks

Q: In general, what would be a good yearly return on investment in the stock market, and what do you expect for 2022

Q: My question is simply, when to sell ? I acknowledge market timing is impossible and most portfolio managers say stay invested for the long term. Somewhat cynical as believe that such advice is driven primarily by compensation and relative performance issues, issues which retail investors are not subject to. Most of my assets are in taxable accounts with concentrated positions, especially in the FANG stocks. It’s been a good run and inclined to sell the lot, pay the tax and wait for the dip. I have no doubt that these stocks will be significantly higher in 5-10 years, but I also have no doubt that there will be a dip where if patient you can acquire for a lot cheaper, ( prime example is Apple and Meta). Not looking for individual advice but retired which obviously impacts the length of the runway or exit ramp. Thx

Q: Hello 5i Team
Why did the Technology stocks
sold off today when yesterday they all (most) rallied.What changed ?

Thanks

Q: What would you expect the 2022 increase in interest rates to be in the US now that the FED is signalling (Bloomberg) it's ready to begin to raise them?
If you were sitting on EUR cash, would this signal a readiness to buy USD? If yes, what news would you look for to know when to buy the USD?
I realize you aren't forex dealers but any insights would be useful.
Thanks a lot.

Q: Everyone, with the US Feds announcement- now what happens to the market?

Clayton

Q: What are your top 3 U.S. stocks that look promising both in 2022 and beyond. I must admit, other than 2008 and March 2020 I do not recall a period in time where small and mid cap stocks have been crushed like this. Would you consider us in a bear market, even though the large caps mask this and markets at near all time highs?

Q: There was an article in the G&M today (Dec. 14th) that I found interesting. https://www.theglobeandmail.com/investing/article-if-stocks-crashed-what-portfolio-would-you-want/
It suggested that a portfolio of 25% each of gold, cash or equivalent, long bonds and equity would have returned 7% plus annually over the last 30 some years, with the worst year being 2013 when it would have declined only 0.5%. It goes on to suggest some ETF’s that could make up this “Permanent Portfolio”. In the current environment, and knowing that past performance won’t necessarily be repeated going forward, the strategy looks crazy to me. Not sure if you would have read the article or if the “Permanent Portfolio” is a generally known thing, but any thoughts?

Q: Hello 5i Research Team
Looking forward to next year 2022, what strategy would you recommend with the likelihood of higher interest rates.Which area of the market are going to perform better and going to be hit hard. An example of a few stocks that you may recommend that should perform well next year.
I would like to thank everyone on the 5i research team for great advice and wishing you and your family a Happy and blessed Holiday Season.

Q: In your opinion how much of the inflation/interest rate fear is already reflected in the market. What is the best advice to feel better about this shift if growth stocks are a good part of a portfolio.
Thank you for the hand holding that you all do.
Peter

Q: Other than stocks vs bonds, please list your favorite uncorrelated asset pairings to include in a diversified portfolio. Thank you.

Q: Under present circumstances I find it difficult to determine at what stage we are in the business cycle. Could you overlay the business cycle and market cycle and indicate where you think we are and how this will influence one’s investment thesis?

Q: Like many here I am nervous about buying fixed income in the current situation. You often mention that most people will be sorry when things turn around and stocks fall. Well, I get that. Even though we would have enough to survive even with a fairly large drop in the value of stocks. But, I realise that it would not be fun. So, what to get in terms of fixed income. I have mentionned in other questions that I would be inclined to get something completely sure for this component of a portfolio. Unfortunatly, it is likely to lose money, when inflation is considered. So, is it worth it to go further afield and enlarge the fixed income space? Here is what a popular blogger writes about this question. I would appreciate it if, with your experience and judgement, you could comment on it:

Another fallacy to dispel is that the 40% of a 60/40 should be in bonds. Nope. Many govy bonds suck and will be creamed as rates rise. So this is a really bad idea. That fixed income portion of the portfolio should be made up of short-duration bonds, some corporate invest grade issues, a floating-rate bond ETF and a healthy weighting of rate reset preferreds, which rise in value along with the prime.

thanks as usual for the great service

Q: Everyone,
When do you believe people will be buying for 2022? Have they been buying a little, normal or above average going into 2022?
Clayton