Investment Q&A

Q: Hi could you please explain why you think healthcare may be a good place to hide if markets stay week? And does this include biotech without revenue or are you referring top the larger drug companies with stable revenue?

Q: It appears to me that major components of our economy are slowing. Specifically, vehicle sales, home starts and home sales all seem to have stalled or are stalling. Considering the outsized contributions these make to our economy, when coupled with a US - China trade war and increasing interest rates, why would one not sit on the sidelines during this market correction and/or go more into cash?

For example, people often complain about the effect of the price of oil on the economy, but the reality is that fuel and electrical production are ~ 10% of Canada's GDP whereas real estate, construction and related financials make up ~20% and automotive exports are the # 1 or 2 export from Canada.

I can't help but think that things are going to get worse before they get better...

Cam.

Q: I know this isn't an exact science, but can you list what Canadian sectors you think will be the hardest hit by tax-loss selling? Is it a good idea to wait until early December to pick up some companies in these sectors?
thanks,
Paul

Q: This is ugly. I asked you on several times about selling my Financials in both Canada and US (was up 40% on average)) you advised against this? (In hindsight your advise wasquestionable - Question I have now is should I sell some higher risk stocks in different sectors and load up even more on Canadian +American banks . I know you cannot be right all the time but this turned out to be a major miss for me. I still cautiously valve your opinion. Thanks

Q: After a correction like we’ve seen the last week, where do you see as the best place to put money? I didn’t sell anything during the pullback. I have a long time to wait, and am ok with risk. Would you recommend long term value stocks (such as dividend aristocrats, banks, utilities etc.) or more fluctuating stocks (such as tech, pot, faang etc)? Where do you see the better bounce back? I use all available drips.

Q: According to Bank of America while individual investors are still buying stocks, institutional investors are selling. Is that a bearish sign ? Typically professionals exit the market before a major downturn and retail investors as always late in the game throw their money into the market at a wrong time. What are you thoughts on this?
I have recently bought SIS, PBH and other 5i BE stocks. I had placed some stink bids with my buy price atleast 10% below the price about a month ago and all those transactions went through to my surprise. The stocks are still falling further. I know for long term investment one should not worry about 10-20% fall in good companies but are institutions selling the companies followed by 5i portfolios and may be they are waiting to come back in at a much better pricing in near future ?

Thanks for the great service as always
Ninad

Q: EquityClockOct 24th, 8:07 am
US New Home Sales down 8.9% YTD, weakest performance since 2008.

Given that housing is known (or so they say) to be a predictor of how well the economy is doing.....what are your thoughts on the above news? Should we worry or at least be cautious?

Thank you!

Q: Over the next year or so I'd like to transition into some US names. I also plan on travelling a fair amount to the US as well. Can you advise on how you feel the Canadian dollar will do.

Also, can you advise on the current state of the economy. Today's increase followed by verbatim that there will be multiple (more than expected) I find concerning for the Canadian economy. We are late in a cycle (as per prior length of cycles) and we this will certainly impact discretionary income significantly. Not even considering an uptick in mortgage defaults which I would imagine would rise just on the basis of simple economics... I guess my question is, do we really see rates rising quicker than expected? Just seems surprising to me.

Deduct as many credits as you wish.

Q: Hi there,

It seems like in this quarter, good results are being punished. Over the last several years this did not seem to ring true. It seemed like good results were rewarded - even on negative sentiment days - however now it seems like good results are received poorly. Does this usual indiciate something much larger going on in the markets?

Thanks

Q: The period November to March is usually a strong market. Should I start putting money into stocks starting in November. Outlook is still good for 2019. If Trumps tariffs come off against China this would help outlook
What is your outlook for 2019 ? Increased profits for US Companies ? A strong stock market in 2019 ? RAK

Q: Bank of Canada just raised the key rate to 1.75% and drops its pledge to move gradually. What's Mr. Poloz seeing that the rest of us are missing because the TSX is singing a much different tune? I hope it's not the part time jobs from the recent elections in Ont, Que & NB. We're a little removed from what's happening in Central Canada but I can safely say the Alberta economy is not running at full capacity. In fact one of the largest land developers in Calgary just recently let go 40 office workers.
It's not the first time the BoC has been offside and had to reverse course. They seem to focus too much on a few key data points and ignore the economy as a whole.

Q: Good afternoon folks:
Is this a healthy correction plus tax loss selling as well? Could u please give your opinion on what retail investors should do in this volatile environment?

Q: Is there an end to this stock slaugther?

Q: Hi there,

I was watching CNBC earlier this morning and they were mentioning awaiting a wash out in the markets before it things can become positive again. Do you believe in the theory of wash outs and is today’s performance reflective of that occurring?

Thanks!

Q: Hi, On BNN Market Call Monday, the guest, in his market outlook segment, suggested that we may be facing a downturn worse than 2008, which is certainly not a very pleasant prospect. Your comments please.

Q: JPMorgan is predicting a 50% chance of a US recession in the next 2 years. One would likely impact Canadian markets like 2008-9. I started investing in the markets this past April and was up over 6% in a short time until Trump started his tariff tirade and eventual war (plus other contributing factors) and now am down over 8%. It would seem this volatility in the markets will only get worse until it gets better. That said, if I recall correctly, BMO recently came out and predicted a TSX rebound that could hit 17,000 before EOY. I am just trying to figure out should I ride out the storm or jump ship at the next port. Based on your market update, specifically, "Investors should keep in mind this is just one quarter in a journey measured in years.", should one still consider riding out the storm?

Q: Good Morning
Technicals on XBM would indicate that we are entering a growth period for base metals, however, "Bank of Nova Scotia (BNS.TO) on Monday said concerns over Donald Trump's trade war with China is likely to dominate the outlook for commodities in the fourth quarter, predicting the issue could be a drag on markets until the 2020 U.S. election. The bank said that while a new North American trade agreement may decrease uncertainty, the U.S. trade war with China is likely to cut commodity prices for most metals."
What is your stance on base metals for the upcoming period?

Carl

Q: ..thinking American midterm elections may be a catalyst if Dems win and dampen the economic momentum (and associated rate increases) going forward...under that scenario do you think utilities would be a good place for relative safety, yield and a possible rebound? thanks.

Q: While your comments could apply to both our Canadian and US markets it is interesting that your slant appears to lean toward US markets rather than Canadian even though the bulk of your research covers Canadian based companies. Sure the US markets are still up this year but it is quite a different picture when looking at the Canadian markets. We are ' not still up' this year but down since January. Interest in the Canadian equity markets is waning for various reasons, taxes, regulatory hurdles, etc. So could you perhaps add some comments that address our markets and investment environment.in the context of our recent performance and future expectations. Thanks.

Q: Could I have your thoughts on the current worldwide market sell off, what is driving this and how bad can it get? Is it a short term correction or something bigger to worry about?