Investment Q&A

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%.

Q: I am looking for suggested sector weighting’s for a senior (75 plus), mostly conservative, investor.
Much appreciated as usual - ram

Q: Good afternoon, I am starting to get nervous.... hearing lots of predictions on BNN from different sources of market being in dangerous territory and tech bubble about to burst. What is your advice?

Q: i understand anytime is a good time to buy stocks, but I feel this recent rally is slightly overdone Is this run up a combo of Major trading firms covering any shorts they may have on their books as reddit chases different asset classes and maybe some institutional cash being put to work?

Q: When the Gamestop frenzy was active Wednesday the market dropped 600 points. When it was restricted Thursday the market recovered. Now the market is plunging again. Is this mere coincidence or are funds which have to cover their shorts being forced to dump shares in other stocks on the market in order to get the cash to buy gamestop? In other words, how much of the fall the last few days is due to the actions of the reddit gang?

Q: I'm currently holding about 30% of my portfolio in cash. Partly as a hedge and partly as liquidity should there be a market correction upcoming. The rest is invested in blue chip dividend paying stocks and a couple growth stocks.
I understand you don't give personal advice on weighting ands risk level but would you consider this too /very conservative?
I'm looking for suggestions to park the cash to make some sorta of return and can only come up with CMR but yield is so low not even sure if its worth it. Thoughts?

Q: Hi Peter,
Is market going to crash? or big correction? Your opinion please.

Thank you.

Q: What percentage increase do you believe the Dow, Nasd and TSX will be this year. I understand we will have many political, economic, social and health issues to overcome.
Clayton

Q: I have $60,000 in an RDSP that I am transferring to a self directed account. At least $6000 of new money per year will be available for new investments. I have a 20 year investment horizon with a balanced to growth focus. Luckily I subscribed to 5i in September and have been closely following the Questions and Answers, your posts and updates, and company reports.

I will use the sector allocations you provided to Tom on Jan 6th for 2021. I need your guidance on how much of the portfolio to invest in the Canadian and US markets, and other geographic regions / countries. For the Canadian market I plan to invest in individual stocks. For the rest of the portfolio I will use ETFs.