Investment Q&A

Q: Dear Peter and team,

I know from your previous answer to my question and others, you believe in momentum as an important factor in investing.

Do you think the recent price action in the energy and Gold sectors are real and sustainable? Do you think they have the momentum and the legs to go for some more time, say a year?

Gold has hit 1900 before but really hasn't gone beyond 2000+ in a sustained fashion. Plus Bitcoin is here to stay?

Q: Hello, I have 3 questions:

1. What do you think about CTS Third quarter report today?
2. What do you think about TMD company?
3. What do you think about simultaneous breakout in gold and USD?

Q: Hi, Peter

Rates are going up. One of these days, we are going to wake up and hear the news that rates have gone up and we're all going to say, "Oh, geez, I wish I had done....X",

What's X? What will we wish we had done before rates start going back up?

Appreciate your thoughts on this atypical question.

Robert

Q: Hi,

What would be the implications of China waging a war on Taiwan on the markets..US and others may jump in too ..Chinese seem to stocking up groceries and other essentials..
Do you think slide due to Chinese real estate and the country’s policy to tech companies likely to continue and what sectors do you think will be most affected. Thanks for your insight.

Shyam

Q: with the infrastructure bill passing what companies would you recommend as being in the best position to benefit.

Do you feel it might be better to be in infrastructure companies or stay with high growth companies in technologies.

Thank you.

Donna

Q: Hi 5i,

From all three of the model portfolios, which consumer cyclical defensive stocks are under valued?

Tks.

Q: It seems to me that going forward inflation worries are real. Assuming my thesis is correct, I have read that one way for investors to protect their portfolios is to buy companies with "pricing power". What exactly is pricing power and can you give me a list of Canadian and American companies that currently have the most pricing power.

Q: It seems like a lot of analysts are talking about a resource bull market especially regarding the inflation/stagflation discourse.
Do you feel we are heading into a resource bull market?
And, are there certain sectors you favour - Oil/gas, copper, uranium, food, precious metals?
Finally, are there any stocks within this very broad resource sector that you think is a standout. Please take as many credits as necessary
Much appreciated

Q: Would you please comment on the current use of ai and how it effects stocks ,especially with concentration of wealth.

Q: Hi 5i,
I wonder if the market is (and will continue) reacting quite negatively to the new federal cabinet, out of a belief that economic growth, national self sufficiency and real prosperity for Canadians is not currently high on the list of government priorities. Nothing can hinder economic health like obstructionist government policy and I sure see lots of that in Canada these days. I'm feeling like I should concentrate hard on moving as much as I can into US and international names.
Would you say I'm overreacting to what the next 18 months to 2 years (the usual life span of a minority government) might bring to Canadian business? Are there sectors that are likely to thrive during that period, other than maybe the banks, do you think?
Thanks for any insight you can offer.
Peter

Q: May I please have your thoughts on the current Canadian dollar strength,
and whether you think it might be timely to convert funds to US dollars?
With my portfolio currently weighted about 25% in US currency I'm finding (as usual) multiple and developing opportunities in the US, but with the larger Canadian component significantly in cash. I'm not sure how deep an exposure to the US dollar should be reasonably targeted.
Thanks in advance for your opinion.

Q: For the last 11 years - I have been investing in Canadian companies with a track record of dividend increases. I have been a 5I member for most of those 11 years and you have always provided very insightful guidance - Many thanks!

The strategy has worked pretty well and is very tax efficient owing to the Dividend Tax Credit. Recently there has been alot of political talk about "taxing the rich" particularly vis a vis the capital gains inclusion rate - with less - but still some talk about elimination of the DTC. ("Rich" of course means anyone with any taxable holdings at all).

Aside from the obvious impact on my tax bill if the DTC were reduced or eliminated - I worry that there would be huge impact on the Canadian market. What are your views on the likelihood of a change to the DTC and would you expect a large impact on the stock price of Canadian dividend payers.

Thanks!

Q: Hi
with inflation rising what sectors should we consider being in and which should we avoid

Thank

Q: A recent guest on BNN market call (Blackswan Dexterios) mentioned use index overlay to protect on the downside. Being in the sales game it is portrayed an the sprinkling of magic dust. Going under the hood they are obviously making the use of options.

What specific strategies involving options do you feel are useful for this type of strategy ? Buying or writing calls or puts or any strategies such as straddles etc. What are the pros and cons?

Thank you,

Paul

Q: Hi,

I recall conversations years ago where people were commenting that the market is expensive, but the quick rebuttal was always-were else are you going to put your money.

In your opinion, is there an interest rate level where institutions start to move out of equities and back into fixed income. Additionally, is there a 2-10 or 5-30 year spread level that would signal any potential issues for the equity market?

thanks as always for your valuable insight.

Q: I am a 74-year-old, retired, conservative investor. Please advise if investing new money into REITS and Preferreds would be advisable at this time when it is likely that interest rates will be rising in the near term. My portfolio is currently balanced with 50% in 5-year laddered GICs, 10% in corporate bonds, and 40% in income generating ETFs; 51% Canada, 32% U.S., 15% Europe, and 2% Asia. Thank you.

Q: I see anecdotal evidence that 25 to 40% of the population is unvaccinated and will not get the vaccine. What does our economy look like with 25 to 40% unemployment if mandates force these people out of the workforce?

Q: You have said that there is lots of money on the sidelines. How do we know that? Who’s money is it? Retail or institutional? If it’s retail and a recession comes will it come back into the market or be spent or elsewhere?

Q: Has the smart money turned bearish? If so, what does that look like?

Q: Canadian/USA dollar, where do you see it in 6 months/1 year according to economic uncertainty, which currency would you want to be involved in?
thanks