Investment Q&A

Q: AS Oil stocks were much beatonup and now recovering very well,Which other sector is in similar position.Being A Realtor I think Commecial reits,office and retail US AND
Canadian are but Need your Opinion and advice.

Q: In one of your recent replies you said that “while the declines are big, we are not so sure we are at capitulation just yet.” I remember similar comments in early 2020. Recognizing it’s tough to predict a bottom, what signs do you look for that suggest we are at or very near the point of capitulation? I believe quick reversals is one, but are there others?

Thanks.

Q: In recent years, and especially during Covid, the central banks have effectively been printing money to fund the national fiscal deficits. In theory, governments are to repay the central bank for their bond purchases. However, there is a possibility that governments will choose to write off these debts (as is being recommended now by many economists). Should the governments write off these debts, what investments do you feel will do well in this environment, and which will not do well? Would a write off not have the effect of diluting the currency?

Thank you for this wonderful service!

Q: Apologies in advance if this has already been asked but....
Interest rates up- what sectors/etfs act better in this environment.
Interest rates down- sectors/etfs act better in tis environment.

Many thanks for your help.

Q: There is a lot of nattering now about interest rates rising. When I look at historical charts I see that they are still very low when you take a long term view. Is the concern over done here?
Also wondering what sectors you would favour at this time with a shorter term horizon; i.e. where are we in the rotation?

Thanks

Q: Hello 5i,

The BOC has clearly indicated that interest rates will not be increase until 2023 at the earliest and it does not appear that we will reach full employment anytime soon as long as the current pandemic continues to act as a drag on the economy.

My question: Why all this talk about interest hikes. What are the criteria supporting this conclusion and what is your view about imminent interest rate increases?

Q: Hi group watching these high growth/high valuation stocks going down..down....down. Is it time to cash out and lock in what profits I have left usually do nothing is the best strategy but i am struggling to make any sense of that as the present environment feels different - your thought on sell or hold would be appreciated

Q: With lots of chatter in the business press about reflation, how likely are we to see a rise in interest rates? Governments worldwide are cranking up their spending and this is adding to their debt burdens. If the central banks are the ones who set interest rates, why would they willingly increase the interest rates since this would have a perhaps catastrophic effect on the ability of governments to repay their debt? Or can interest rates jump simply because lenders demand higher rates because of the risks of default. I can certainly see that in the municipal and provincial /state borrowing. I suppose the answer to my question may require an article rather than just a reply reply, (hint, hint).

Q: Could you list a few companies (in Canada/ U.S.A) from each sector that may benefit if inflation catches hold and supercedes target rates set by their central banks?

Art

Q: In this time of rising yield where is is safest place to find income in a RRIF. I assume corporate bonds better than government, short term better than long. What about preferred and senior loans. Equity sectors negatively affected would be real estate trusts, utilities, consumer discretionary and tech. Financial, industrials and energy are positively affected. What about telecoms? Thanks for your help. Stay safe.

Q: Hi there,

Do you think we are closed to the beginning of a sell off/correct, or the end? Also, do you see this as a good opportunity to start a position in ARKK (~$135)?

Thanks!

Q: To me, inflation is a super irritating economic phase, it's the neighbours calling the police because everyone was having too much fun at your party. Trillions of (COVID) dollars have been injected into the global economy with more on it's way, rising interest rates are on the distant horizon, I don't want to be caught off guard. What's the best way to position my portfolio to reduce the negative effects of this trend?

Q: Hi Everyone at 5i!! Peter, I would like to thank you for your article in the National Post this weekend! It gave me quite a bit to think about. I am stepping into retirement next month with a very comfortable nest egg. 60/40 stocks and GICs. Stocks are diversified dividend players and growth. It seems though, that any direction you turn, if the stock market develops one kind of an issue or other, we are getting hit. If inflation goes up( which anyone who does the grocery shopping will tell you, it is happening at a goodly pace), and interest payments do not, there goes the purchasing power of your money. Gold could be a portfolio holding...but how much of the stuff is effective to protect the portfolio ? Dividend players may not offer much protection....well there goes that idea. GICs pay piddly amounts. Bitcoin? How could something that technically is based on nothing have so much value??? Real Estate? Stupidly expensive...So, I have a come to two conclusions: 1) start a small hobby farm in my backyard and grow my own vegetables, should things really go egg shaped. 2) Ask for a 5i article, which outlines specific portfolio protection advice considering the times we are living in. Right now, like you, I am trying to stay optimistic,, though sometimes it is hard, and I am staying the course. Thank you for all you do! Cheers, Tamara

Q: Hello

Our US holdings are up 36.25%, where as our Canadian holdings are only up 17.22%.
The five mentioned above are our only real shining stars at this point.
Is one better to have all US holdings and forget Canada?
Thank you
Mike

Q: Hi Peter,
from your article in the Financial Post, could you elaborate on the effects of inflation or deflation on a portfolio?
Thank you.

Q: Hi,
This is more a big picture question.
For several decades the concept of "Inter-market Analysis" had high "currency" value. Simplistically summarized thus: Stocks go up and bonds go down. Inflation goes up so does Gold. US goes down and Emerging markets go up etc.,
That idea seems to be dead now. It appears that having a long and short position even within sectors seems to be popular. Or the correlation exists still but with different asset classes. For eg., inflation and Bitcoin are now linearly correlated!
Or Bitcoin and Gold are negatively correlated! (Bitcoin hit another record today>50 k and Gold went down below 1800$!!)
Should one really forget about fundamentals and enroll in classes for Options trading strategy?

Q: The CEO of Brookfield made the following comments in recent Letter to Shareholders: "With no meaningful inflation on the horizon and high unemployment numbers, there is an expectation that interest rates will stay low and that stocks that were not bolstered by the pandemic trade will recover....Low interest rates will continue to drive demand for alternative investments. Interest rates appear to be set to stay in a lowish band for several years".

Any thoughts on the low inflation comments? Thanks
Robert

Q: There is a lot of talk about a shift to value stocks. What is and how do I identify a value stock and can you give some examples of current opportunities in your portfolios and generally please?

Q: Hello 5i Team
I have questions about the market run up in general as of late ?
I own all 5i research stock in the portfolio and plus others that 5i has recommended . I am getting mix signals about the market for this year. I have done very well with your recommendations , looking for directions on the market outlook for 2021? Please deduct credits as appropriate.
Regards
Claudio

Q: I keep hearing the equity market will move down when the Fed begins to indicate rate increases are on the way, when that occurs where would one go as Bonds will also fall when rates rise? I'm just looking for safety with a modest yield, say 4%.