Investment Q&A

Q: FOMO with my current stash of cash....I've cleaned up some small positions and been sitting on the cash for what seems like forever now....The market is always right but I still have red lights flashing and alarms bells blaring in my investor brain with the markets continued moving along like all is normal. I am buying some target names that haven't bounced back in small amounts but I am starting to question if I should get back into the market again with my hoard of cash....

What are the 5i collectives thoughts on good cash position right now. Currently I am at 15% cash while I am usually at 2% range. So it isn't like I am 100% cash but still some FOMO thoughts fighting against market correction coming cash hold.

Q: When we are facing the specter of the federal government spending without regard to the future and the Governor of the Bank of Canada saying negative interest rates are back on the table, how could investors reposition their portfolios to mitigate the negative aspects of these events? Can you provide a few examples across the various sectors where one could start to reposition a portfolio?
Thank you...

Q: When the bond market reverses which sectors of the market would benefit.
Please list your top 5 names on the TSX under such a scenario.
Thanks Richard

Q: When Trump won the White House in the last election stock market rebounded sharply. If he is successful next month I would think we would see the same, however if Biden wins his election platform is quite different and wonder what your opinion would be if this is the case.
As an investor should we be locking in gains now.
Thanks and look forward to response
Rick

Q: I was wondering if you would be able to give me a few stock buy and sells based on the upcoming US election.

1. If Trump wins, what stocks could do well and what stock will not do well.
2. If Biden wins, what stocks could do well and what stocks will not do well.

Can you give me a few of your Growth Portfolio stocks that you might considering lightening up on and a few stocks that you might consider purchasing more. (Feel free to add in any other CAN stocks and a few US stock as well).

Q: Hello Folks:
I have about 20% of my portfolio currently in cash and am usually close to 100% invested. In your humble opinion is this as good a time as any to buy or do you feel we have enough significant risk to hold off?
I certainly understand no one has a perfect crystal ball, however do value your insight!
Thanks again!
brian

Q: Hi

Based on the current events show going on in the US.
I am thinking of selling all my US holdings and buying them back when the dust settles.
Capture the gains and buy them back at a steep discount.
Your comments Please

Thanks
Mike

Q: I’m considering adding to my SHOP and KXS positions and initiating LSPD and CJT positions. I’m in no hurry and would like to purchase shares that have gone on sale(lol). I’d appreciate your commentary on the likelihood of the impact of two events in our immediate future and their impact on prices. My concerns involve: (1) the coming of winter and the impact on LSPD as restaurants shutter, potentially for good and (2) the impact of the US election if the result is dragged out for weeks in an ugly transition of power. I have no problem buying today, and I know you don’t recommend timing the market as there is always something to worry about, but it seems foolhardy to not consider the impact of events staring us in the face. Thanks for the guidance.

Q: Thanks for the recent update, I look forward to your monthly emails.

With respect to point two about locking in some profits, I've often wondered how this works for institutions. Would they actually sell their portfolio and go to cash for the remainder of the year? Do most mutual funds not have to be mostly in the market thus having only a small cash position? I suppose you're referencing other major institutions like pension funds, hedge funds, etc.? Are they more flexible in how much cash they can hold?

Personally I'm tempted to sell to lock in my 2020 gains which have been my best ever (lots of great 5i picks, thanks) but then the question of when to get back in always confounds me. I'm all registered accounts to so no loss to write off and no gains to worry about at tax season.

Say one did want to lock in some gains what would you suggest? Selling high fliers, only to potentially miss some more gains? Sell the lagards? Sell the high risk? Balanced?

Cam

Q: In one of your recent updates there was a bar graph which compared the performance of all sectors of the economy. Technology outperformed all.
Going forward over the next year. is there a sector or sectors that you think will perform better than others?

Q: I've encountered, in less than a week, no less than four articles in various media, predicting that the US dollar is going to 'crash' in 2021 with suggestions it could drop 35%-50% in the coming year. This one on CNBC is an example. https://www.cnbc.com/2020/09/23/us-faces-dollar-crash-high-double-dip-recession-odds-stephen-roach.html

Obviously this would be disastrous to anyone with US dollar holdings or stocks in US accounts. What do you think of this? I know you're generally against hedged ETFs but do you think that might be a decent idea now for those wanting to hold US stocks?

Q: The Fed has basically said that it will keep interest rates low for the foreseeable future, and allow inflation to run a bit higher, to average 2% longer-term.

It looks as if we will be heading into a new investment environment where interest rates could be lower than inflation for an extended period of time. In this type of environment, what factors, sectors and geographic regions do you see doing well? Given the high current valuations for high tech and FAANG stocks, do you continue to recommend overweighting this sector for the next few years?

Thank you for your valuable insights.

Q: If we found a Covid-19 vaccine tomorrow, what are the most depressed companies now that would benefit the most?

Q: What would you conjecture would be the market's response if the following were to occur: 1. Biden wins so decisively that Trump leaves with very little resistance 2. The Republicans win the Senate and 3. Shortly thereafter, we come up with a successful vaccine ? Thanks.

Q: Hi Peter and Team,

Now that the second wave of Covid is deemed to be officially here (at least in Canada), do you have a sense that another steep market drop is inevitable? I was reading an article by Rob Carrick in the Globe today, and his advice (verbatim) is, "Anyone who has money that they cannot afford to lose in stocks should get it out, right now. This includes seniors who don’t have their cash cushion set up, home buyers who got tired of earning nothing by keeping their down payment money in a savings account and, more broadly, anyone who will need their money within five to 10 years."

Sounds like Rob is pretty convinced that a significant drop is likely, but my inner gambler voice is telling me that most people expect another quick market rebound (like from April-August), which may negate having a steep sell-off in the first place. Any thoughts from your vantage point? Thanks. Brad

Q: I just recently retired and within my portfolio have approx 60% in Bonds (As per above) - while these have been a great hedge against the equity holdings, I am considering either selling some of the bonds listed above - approx 10% and moving these monies into either high yield bonds - ie CHB or ZHY or if not into high yield bonds possibly a high yield dividend fund like XEI or ZWC or ?
While I would like to increase the income on these monies - do you think this is a good time to make this move?

Q: Hi,

I use these two broad ETF's to get exposure outside N.A. I'm in my late 30's and a growth investor. I know you can't give personalized advice, but what would be your suggested allocation towards these four buckets, VEE, XEF, Cdn, and US stocks? I have a spreadsheet to keep track of my holdings and allocate my holdings based on where they trade, although many companies may generate revenue in other countries. Is this too simplistic? I'm just trying to keep it easy to manage.

Thanks!

Q: To what do you attribute this mornings sharp sell-off?

Q: Hi,

1)What 2 sectors of the economy (not technology) would u be most confident of appreciating in the next five years? Consumer discretionary? Healthcare? Utilities? Banks?
2) I'm a medium risk investor looking a for a US etf with reasonable beta and sustainable growth. Can u suggest 2 or 3? It can have some tech but not be mainly tech as I already own AMZN, Apple, Netflix, Zoom, Shop.
3) Are there any CDN version etf's that cover the same sectors of the US? Can you suggest 2 or 3?

Q: Hi,
Pardon my ignorance ,but I would think that what Jay Powell said today (16 Sept) would actually be bullish for stocks and gold.
My reason is that low interest rates for a long period of time will induce people to take risk and invest in stocks in order to conserve their purchasing power. They will also borrow more money for purchases etc. In addition, as interest rates remain low , the money supply is being inflated which should actually cause the dollar to fall and hence, commodities like gold that are quoted in US dollars to actually rise.
However , after his speech and even after market close, the markets, including the futures are pointing down and so is gold. To my surprise, the US dollar is up.
My last point is, if the entire worlds central banks are inflating their money supply, should this not have the added advantage of markets benefiting and that will include gold too.
Is my concept of economics skewed?


Thanks,