Q: I have a large investment in VFV and would appreciate your opinion if I should sell my position in favor of VSP S&P 500 hedged? With thanks, Bill
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Good morning,
Can you tell me the effect of the increase of the interest rate in Canada on each of the tsx sectors?
Thanks
Paul
Can you tell me the effect of the increase of the interest rate in Canada on each of the tsx sectors?
Thanks
Paul
Q: Hello 5i team,
I’m 74 years old; with due diligence and with the contribution of people like you, my RRIF portfolio is behaving very well. My plan is to deplete the RRIF portfolio at age 90. The revenue from this portfolio will continue at the same level if I get a 7% compound annual total return in the next 16 years.
Unfortunately, we expect a recession sometime during those years. If I were to ride the recession, the value of the portfolio would stand still for (let’s say) 5 years and if the portfolio were to grow by 7% in each of the remaining years, my revenue would drop by a whopping one third. In order to maintain the expected level of revenue, my excel projection model indicates that I should obtain a 20% growth per annum instead. That is unrealistic.
Alternatively, I could do what I did in 2008. I sold my holdings after incurring a 15% decline and re-entered the market a few months after it bottomed and started on its recovery path. If I did that and planned for a 7% growth per annum, the revenue would drop by 13% only. That is quite acceptable because there is a 10-15% safety margin in my revenue forecast…a cushion of sorts.
If, however, I knew when the recession will occur, I would exit the market ahead of time and re-enter after the bottom…”but that is another story”.
I would greatly appreciate your collective opinion.
Best regards,
Antoine
I’m 74 years old; with due diligence and with the contribution of people like you, my RRIF portfolio is behaving very well. My plan is to deplete the RRIF portfolio at age 90. The revenue from this portfolio will continue at the same level if I get a 7% compound annual total return in the next 16 years.
Unfortunately, we expect a recession sometime during those years. If I were to ride the recession, the value of the portfolio would stand still for (let’s say) 5 years and if the portfolio were to grow by 7% in each of the remaining years, my revenue would drop by a whopping one third. In order to maintain the expected level of revenue, my excel projection model indicates that I should obtain a 20% growth per annum instead. That is unrealistic.
Alternatively, I could do what I did in 2008. I sold my holdings after incurring a 15% decline and re-entered the market a few months after it bottomed and started on its recovery path. If I did that and planned for a 7% growth per annum, the revenue would drop by 13% only. That is quite acceptable because there is a 10-15% safety margin in my revenue forecast…a cushion of sorts.
If, however, I knew when the recession will occur, I would exit the market ahead of time and re-enter after the bottom…”but that is another story”.
I would greatly appreciate your collective opinion.
Best regards,
Antoine
Q: Hi Peter: I see another question on the % in each of the 10 sectors. Would it be possible for you to add this to the bottom of your 5i Coverage Summary each month with the up and down arrow if you feel a sector weight should be adjusted? I follow your sector %s and believe it helps me to sell high and buy low. The last time I saw this list energy was 5% and industrials was 20%. Thanks, John.
Q: Hello
I parked some cash in HFR, suppose interest rates go up will HFR be net down?
Thanks
I parked some cash in HFR, suppose interest rates go up will HFR be net down?
Thanks
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iShares 1-5 Year Laddered Corporate Bond Index ETF (CBO $18.65)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY $16.92)
Q: With interest rates likely increasing this month in Canada and also the USA, would you put any extra cash into bond funds (like CBO,XHY) or preferred shares right now; or wait to see if the prices decline with the new higher interest rates?
Thank you.
Thank you.
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
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 ?
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.
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Vanguard FTSE Developed All Cap Ex U.S. Index ETF (CAD-hedged) (VEF $64.38)
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Vanguard FTSE Emerging Markets All Cap Index ETF (VEE $45.04)
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Vanguard Total Stock Market ETF (VTI $327.37)
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
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.
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
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...
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.