Investment Q&A

Q: Would you please be able to provide me with sector percentage allocations at this time for a retired couple with both having a pension and CPP and not using funds from our registered accounts until time of required withdrawal in approx .6 years ? We are not completely Conservative -we have been Balanced with a Growth bias. Thank you for your assistance. I have appreciated the learning opportunites with my 5i membership over approximately 5 years.

Q: Is this the right time to buy any of the above ETF's or will they continue to slide down?

Q: I have read the Fed is continuing to pump 75 billion daily into the banking system to provide liquidity. Is this true and if so does this mean there could be a banking crisis on the horizon, and or,is there problems with the US economy . Is investing in real estate a safer alternative to the stock market at this point in time.

Q: I am going to add Gold to my portfolio and am looking for your advice. I really like the Franco-Nevada model being that they have royalties and do not own mines, but it seems quite expensive? Thoughts on evaluations etc ? Depending on your thoughts I would like to add FNV and an actual gold miner. The ones I have listed have a larger market cap as I am not interested in too small of gold miners.

With all the things going on in the world right now, how concerned are you of a recession in the US that will drag Canada into it? The flags I am concerned about right now are: 10yr bull market, US balance sheet issues, repos, inverted yield curve, Fed policy (decreasing interest rates), trade war, global slowing. A lot of other countries hold US paper........ It makes you wonder how much more debt the US can endure and maintain a strong dollar.

We all know that there is going to be a correction at some point in the future....but something to me feels different about what is coming. Maybe I am just a paranoid investor...I have to quit watching the prepper shows!

Besides gold what is the best way to protect ourselves in the event that the US has a financial crisis that affects their dollar?

Q: 5-I,

I own CPD plus 5 individual rate reset preferred shares with reset dates ranging from 2020 to 2022. . When I look at the gains / losses I see CPD has been hit much more than any of the individual items over the past year. My question relates to how the NAV is determined with CPD. Is it very similar to that of a mutual fund , ie if many sales orders are received the ETF needs to liquidate, thus causing a drop in NAV? Any other thoughts why such a large performance difference between CPD and individual preferred shares ?

Thank you,

Paul

Q: With the possibility of a pending recession in the next year, would you recommend selling one of the following bond funds: ZLC, XBB and ZHY?

Q: I am currently holding the following investments in almost equal amounts (20-25K per):
AQN, BNS, BCE, ZAG, ZEM. BEP.UN. CU. ENB. FTS, NPI, RY, PEGI. PPL. REI.UN. SLF, TRP. T. FN. TD, VXC. VSP plus $8K cash.

Are any of these questionable in your opinion? Are there other areas that would assist allocation? I am 72 , retired and need the additional income,

Q: What sectors are best for stagflation?
What sectors preformed best during the 1970’S?

Q: Good morning.
It seems like the markets took a sudden wild turn on Thursday. Since then gold, utilities and reits are being booted out the door at a fairly high rate. Can you offer up a suggestion of what the markets might be thinking? Are they simply dumping equities or are they moving into some other sector?

Q: Given the market today - and what (if anything) we can intuit about the future - which sectors would you be inclined to overweight...and which to underweight? Thank you.

Q: The direction of Corporate profits is relevant to investment strategy. I am finding an annoying number of contradictory statements on this matter in the financial press. Case in point: in Saturday's G&M Report on Business, the Chief Investment Strategist for BMO Nesbitt Burns says "However, earnings have been continually beating upwardly revised expectations and are now up more than 8 per cent year-over-year in the second quarter." In the same article, the Managing Director of Guardian Capital says "....there are clear signs of the global economy slowing and corporate earnings growth trends continue to decline markedly." Seems to me this is a matter of fact not opinion. Can you tell me if corporate profits are going up or down? Thanks..

Q: Today, the 10/2 year spread just dipped into the negative territory. What are your thoughts for investors going forward and how do you see this as an impact for the global economy?

Thanks,

Q: https://www.cnbc.com/2019/08/26/lehman-like-drop-nomuras-masanari-takada-warns-it-could-happen-in-a-week.html Please comment on attached article.Thanks for u usual services & views

Q: Hi 5i team, do you have any advice if US China trade war escalating ? Which Canadian sectors will be less damaging and which sectors will be affected most?

Q: If we are headed to zero / negative interest rates, I am thinking of playing this thesis by purchasing XLB to capture the capital gain on the interest rate reduction and XGD should do well in a low / negative rate environment. The balance of the portfolio is VBAL and XEG. What do you think? Thank you

Q: I am retired and wish to structure a conservative portfolio consider the uncertainty of the economy. I favour banks (RY, TD), utilities (Fortis and Algonquin) and Telecoms (BCE and Telus), BrookMiled Asset Management, Brookfield Renewable and Brookfield Infrastructure Microsoft and Berkshire B.

I would lik´to have 40% in bonds and favourCLF, XBB, XSB and XSH. I would move from FTB even though it has a higher yield but a higher MER.

Your comment would be appreciated.

Thank you.

Donald

Q: I have 5-8% (20%total) positions on these utility type stocks; if we enter a melt-up type scenario in the markets? Would it be prudent to reduce my utility type exposure by selling 1/2 positions and invest in growth type names like Vtv, vfv, etc.? Or would it be in my best interest to hold steady and ride the curve and collect dividends, I'm approaching 70 years of age? Thank you!

Q: I would appreciate your opinion as to why you think interest rates are falling around the world and what is the implication of the underlying issues for equity investors? What would be the best/worst sectors to be invested in this environment?
I appreciate the high quality work you do at 5i.

Thanks

Q: What conditions in Canada would need to change to cause a significant upward trend in the Canadian dollar? Thanks.

Q: Market Outlook

I realize that I am asking for an opinion and will take it that way.

I have some cash that could be invested, but am not sure when to buy in. (financial sector is what interests me the most.)

Based on your decades of experience how would you decide on when the present down ward slide is near bottom. Please provide your top 5 indicators that there is "blood in the street" and could be a time for buying.

thanks

Ernie