Investment Q&A

Q: Hello Peter,
I'd appreciate your insight.

What do you think about the suggestions that money is moving out of technology and some of it will find its way in the biotech sector? I do not hold any US tech but do hold the biggish position in IWO and IWM combined. With no fresh money, what do you think of reducing the positions in either or both IWM/IWO combine and invest in IBB?
The second aspect where I would like your thoughts is on the Financials both side of the border. With BOC likely to raise rates atleast once, the TSX may drift down, maybe even a sharp reaction. What do you think of reducing TSX exposure, buying US dollars and investing in US financials for the second half of the year?
As always, appreciate your views.
Regards
Rajiv

Q: What sector would you advise to look for some growth without huge risk. Excluding tech, which is clearly hated right now.

Q: During a serious market correction should a rebalancing happen?When the rebound in stocks eventually occurs you have less in stocks as the assets have been reallocated to bonds and cash. Therefore you will never fully recover. Should there be a waiting period?

Q: Good morning guys, great job. Are there any figures on which sectors fair better in market corrections

Q: Hi

I have about $300k new money I want to add to my modest stock/etf portfolio (Total will be $500k)- I am a bit fearful of the bubble (stocks and bonds) - Any suggestions for a reasonable safe yield for 6-12 months ?

Q: Could you please list a few efts Canadian and US that would protect from a down turn in the market.

Q: I currently have, in ETFs, 20% in U.S. (VTI) and 10% in international (5% in VEF and 5% in VEE). I'm thinking that long term my U.S. and Int'l should be equal weight as one never knows what countries will perform the best. What are your thoughts on this and recommendations? Thank you.

Q: Boy, tech is being devastated today NVDA FB/ AVGO/ LRCX etc etc

What is causing this nuclear devastation amongst these high flyers all today and all together?

Thanks for your insight

Sheldon

Q: There is growing concern by well-respected economists and investment analysts about what appears to be out-of-control government debt - especially in the Western World. Like the 2008-09 mortgage crisis, a time when "nobody saw it coming" (fortunately the online investment program I listen to weekly had me prepared 18 months ahead) most people have their collective heads in the sand once again.

I have no idea what the end game is, but while I was prepared for what was eventually to become known as the Great Recession, I don't know how to prepare myself this time.

I am 70% in dividend growth stocks, 30% cash. I don't plan to sell any stocks but am not putting anymore money in the market at this time. Recessions historically occur about every 8-10 years, and this bull is arguably getting extended.

I've added some gold bullion and a bit of CEF.

I believe you had mentioned, if I'm not mistaken, about keeping under $100K at any given institution to avoid any potential future bank "bail-ins".

What other ways can one diversify?

I realize there are enough "chicken littles" out there that we have to listen to, and am aware of the potential missed opportunities of timing the market. I just want to make sure I protect enough of my assets, as I am only 20 months away from retirement. This kind of prudence has served me well in the past just ahead of the 2000-2001 Tech Wreck and the mentioned housing crisis.

Thanks.

Q: My portfolio mainly consist of Canadian stocks. I would like to purchase two Canadian ETFs, one with exposure to the US and the other with global exposure. Can you recommend a couple for me at this time? With the Canadian dollar being quite low now, do you think it is better to get hedged ETFs?
Thanks, Paul

Q: Just curious what you think of the last three days of market activity.

Q: Over the last few years, I've become familiar with the likes of David Stockman, Marc Faber, Jim Rickards, Peter Schiff, Jim Rogers, and other well-known perma-bears. They spend a lot of time warning about sky high stock valuations, extreme asset inflation generally, the banning of cash, the importance of precious metals, impending market crashes, runs on banks, the freezing of stock exchanges, and other light fare. I try to balance their dire outlook with more sanguine perspectives, but I'm always wondering if some of the extreme scenarios they envision will ever materialize.

For instance, Marc Faber appeared on BNN a few days ago, warning that the share prices of some of the most successful companies are headed to zero in the coming years. He didn't specify which ones.

Are you familiar with any of these pundits, and should any of their warnings be taken seriously? Thanks for your thoughts. I'm due back at the bunker now...

Q: Peter; In your experience are there any comparable times , I.e. Nixon, as to what the market does during an impeachment? Thanks. Rod

Q: Could you please state your latest sector allocations? Thanks to your recommendations,my tech.allocation has grown to 28% of my portfolio.

Q: Hello team, I am fully invested (stock/etf's leaning toward growth) but am getting somewhat concerned about where the market is at. It seems (in my layman's eyes) that valuations across the board are getting stretched relative to fundamentals. I can take some profit and am wondering about some "insurance" in sectors such as gold; either cdn stock or etf's. For context, this is a registered account, 5 to 7 year horizon, mid 3 figures. Any suggestions

Q: Good afternoon 5i. I am currently sitting with 25% cash on the side lines. I know that's much too high. I have avoided gold/silver sector as well as oil sector(I do have enb, trp, fts)I've also avoided consumer goods sector. I'm light in industrials (dow & cbi) and property sectors (tcn). All other sectors are represented fully and equally ie health/financials/tech. I have a 65/35% split between US/CDN market respectively. With the stock market correction today and yesterday would it be a good buying opportunity and what sectors should I focus on going forward and if you can offer some stock suggestions in each sector. Much appreciated.

Robert

Q: If I wanted to hedge my U.S. currency going forward, would buying DLR.TO be a good way to do it?

Q: The recent decline in CAD/US exchange rates has me somewhat concerned for my US investments. If you believe,as I do, that the CAD has reached its low point and may move up slowly from here, should you buy US shares in CAD funds? Or is it best to convert now and hold these in US dollars? In general do you believe it is best to have a mix of US shares in an even split of US and CAD currency? What should the factors be to determine how this is handled individually? Or does it even matter?

Q: Could you recommend an ETF that trades in Canada with Canadian funds that.
A. Invests in US savings accounts and pays some interest
B. Is unhedged
Would this be an effective way to play a possible drop in the Canadian dollar. Is there another way that this could be achieved without the cost of converting dollars?

Q: Dear 5i
I am 62 and plan on retiring in 2 years . I am open to positioning myself for 2 more years of some growth but preservation of capital is also important .
I have about 1M in RRSP`s and and close to shifting this amt to my brokerage co. to invest .
I`m thinking the following
1-$300,000 into Income portfolio including 10 good stocks from the Balanced Equity.
2-$300,000 into two different Bond ETF`s (fixed income )
3-$400,000 into 4 different ETF`s.
Does this setup look good to you and if so what ETF`s might you recommend given the current economic climate and my age ?
I don`t need income from the investments currently but think its important to have good dividend growth along with some capital gains .
I`m like most and prefer not to pay high MER`s as well.
Please deduct more than one question for this .
Thanks and looking forward to your response .
Bill C.