Investment Q&A

Q: Befuddled - that's me. Got a list of stocks I would like to add too or establish new positions in, both in Canada and US.
But do I do it now or just continue to hold off?
After the major market bottom, I thought there would be a technical correct......never happened
Then there was the FOMO...and I took a pass on making stock position buys.
Now, the markets are still moving up, and up.
Now what do I do?....like stay put and wait until after the second quarter results as the there is no end to the covid-19, just changes in phases, at least so far.
What is 5iR's suggested tactic, aka approach???
.........Keen to e-read your take.......Tom

Q: I am starting a new portfolio, totally separate from my existing ones due to different ownership and would likely sell after 3 years. What sectors do you think will have the most positive movement in the next three years?

Q: I'm curious your thoughts about converting to USD at this time.

I typically convert my RSP contributions to USD through Norbert's Gambit and buy US ETFs. With the very low dollar I'm wondering if it would be better to buy a similar hedged etf in CAD and then covert it later when (if) the dollar improves. The Canadian portion of my portfolio is held in my TFSA so everything in my RSP would be better in USD to avoid the withholding tax. I don't plan to access the funds in my RSP for 25 - 30 years. Thanks for your help.

Q: Hi, Covid19, China vs USA trade, Upcoming USA Elections, etc. How do you see the markets behaving to the end of 2020, should We be alert and think about selling/parking some cash for next year?
Thanks 5i.

Q: Hello,with all the recent debt taken on by governments all over the world,this has kind of brought gold into the spotlight as a possible “safe haven” do you think Paul Tudor Jones strong endorsement of bitcoin would be a competitor for investment dollars in that space or am just misreading this
Also do you think with this tremendous amount of government and consumer debt load,do you think gold could be a good investment going forward for at least a possible 1-3 years and maybe even much longer depending on when balance sheets of governments start to look better thanks

Q: Hello,
I was about to question when I should make a significant buy in my kids’ TFSA’s, and should I wait until 2nd and 3rd quarter earnings are out which could substantially affect the market to the downside. Then I read your article: Unintended Investments consequences from Covid crisis. You seem to have answered that very well in that the Central banks of the world have a “put” on the floor of the world’s markets and the worlds’ governments have politically put cash in the hands of those who need it most somewhat enabling the economy.
So in other words, you would suggest to get a move on and start investing before the expensive market becomes more so?
Cheers,
Rick

Q: I believe recently discussed a maneuver to exchange CAD to USD. Is that something I can do in a self directed I trade account?

It seems to me that if this is a dead cat bounce in the market and there is another test of lows that having USD would be a good hedge. What are your thoughts on the best currency to preserve capital?

Q: I am trying to understand what is going on with the market. While the drop that happened was expected the fall was exaggerated by virus implications. The market now seems to be back to where we were before the drop which by some accounts was overdone and ready for a fall. Yet now there are even more reasons for a storm to occur.
Please, any thoughts you have to make sense of this.
Thank You,
Peter

Q: Can you confirm my understanding of what is happening: Deflationary pressures based on lockdowns/economic slowdowns due to COVID-19 and Inflationary pressures based on bond purchases/stimulus from central banks around the world.

If this is relatively (and simplistically) correct, do we have a belief on which pressure will win out over time?

Q: What equities would you expect to perform well in a currency devaluation environment (large deficits funded by money printing)? Thanks.

Q: You have mentionned in the past that some of you at 5i are trading options during this time of high volatility, as i have bee, too. I am wondering what your prognosis of the coming months looks like. I have been getting scared of another leg down coming and am fearful of getting caught in Stocks that have fallen. That caution has been heightened by Buffet's ecision not to buy during this time, presumably because it is too uncertain. This may be a bit too broad of a question but i would be interested in knowing what you see on the horizon and what your take is of Buffet's apparent view of that smae horizon
Thanks

Q: Hi there,

I am considering opening a USD TFSA and converting it from CAD to USD using Norberts Gambit. It is a large sum and I was wondering if now would be a good time to do it or wait for the CAD to strengthen. Do you think there will be a better opportunity in the next few months or would you be comfortable doing it today?

Thanks!

Q: Good Morning 5i Team,

Employment numbers are coming out tomorrow and they will be dramatic.

Do you have any thoughts on how the unprecedented job loss reports might effect the markets?

Thanks for all you do

gm

Q: From your prespective does the huge difference in P/E in canada vs the SP 12.8 vs 20+ represent a buying opportunity for canada or does it reflect the market difference ie the greater resource content in the tsx.

Q: In one of your questions you said it looks as though the worst of the pandemic is over. Just wondering from a financial perspective why you would have this take.

Thanks

Q: What do you think of this etf as a hedge to the market ?

Q: What did you think of the earnings report of BRK.B? What do you think about Warren Buffets comments?

Interested to know what your thoughts of this market moving foward (e.g. re-test the lows in March, low downward drag, best to continue to buy small and steady over time, sell anything that might have been bought too high at the rally)? I ask this question as I assume all your subscribers are wondering as these markets are difficult to navigate.

Thanks so much for your fantastic service. Best investment decision I have ever made. Hope you and yours remain safe and healthy.

Q: Over the weekend, Warren Buffet is going to addressing his fans and no doubt all of the investment community is anxious to hear his views. I have no doubt he must be quite nervous for he and Charlie Munger since they are both in the late 80's . None the less , he will probably say some soothing words and it may give the market a bit of a boost, but how long it will hold is anyone's guess. As the economy reopens as early as next week, I think the "market" is going to feel better.

Q: I've been in the market for about ten years. During that time a certain predictability has emerged in what sorts of stocks get most heavily hit during market routs such as today's., and what sorts of stocks are least damaged. That predictability has disappeared since February. In fact, when the market drops down heavily the stocks most likely to be hit hardest are the ones which used to be hit least, like utilities, REITs, banks, and other dividend stocks. Do you have an explanation for this? Shouldn't the low interest rates which make bonds unattractive protect these stocks to some extent?

Q: Hello Peter,
The quarter beginning January is generally good for the market and this year was no exception until the time global economy was paralyzed by covid19. Now we are in May the time for sell and go away. Besides, history would suggest that the recovery does not happen in a straight line. I would like to know what probability you would give for a correction next couple of weeks, before /after the earnings season ends.
The recovery is usually led by large cap which has largely been the case and recently the small caps are showing signs of life as evidenced by the ETF IWO. I am fully invested participating in the recovery and here is the dilemma. Do I stay the course or should I trade the swing if there is a say a 70 percent or more probability of a correction happening soon. And I am not trying to be exact but reasonably close; and could do with your experience and expert opinion on this. And should I raise cash from large caps or the smaller growth stocks, almost all in the tech sector and in the USA. Both will recover eventually but which group would be primed for a trade if that is the route to go.
Thanking you in advance.
Rajiv