Q: What do you think the go-forward risk is for significant market correction? Are there traditional metrics that you follow for such (ie inverted yield curve) and could you please comment on their present state?
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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: Knowing that portfolio allocations need to be very personal, but would 30% Canada, 45% US, and 25% international work as a general guideline for 60% equity portion of a new RRIF account?
Would you change the 40% fixed portion consisting of 20% 1-year GICs, and the remaining 20% of XHY, CVD, CPD, Bonds mutual fund (currently at loss)?
Thank you for such a great service.
Would you change the 40% fixed portion consisting of 20% 1-year GICs, and the remaining 20% of XHY, CVD, CPD, Bonds mutual fund (currently at loss)?
Thank you for such a great service.
Q: Hi Group . I am not happy with my Raymond James financial advisor. Namely I am paying them $1200/month in fees. Presently i am at 6% return YTD (7 1/2 average over last 10 yrs). When i look at your balanced portfolio you are significantly better than that as is the major markets..
What is the best way to measure performance. Is it fair to say in general that they should be better than the market. What do you suggest as a reasonable measurement on performance . I realize this is not easy to measure so can you give me some suggestions that i can follow . thanks for your help
What is the best way to measure performance. Is it fair to say in general that they should be better than the market. What do you suggest as a reasonable measurement on performance . I realize this is not easy to measure so can you give me some suggestions that i can follow . thanks for your help
Q: Hello 5i.
Sometimes in questions (or answers) "starter positions" or "partial positions" are mentioned. My question is, how should an investor best manage such positions in a hypothetical 20-25 stock portfolio (implying 4-5% as a full position), while maintaining this portfolio size? Should an investor buy e.g. 4 "starter positions" at 1% each and then consolidate into the one that does best? Or should an investor buy starter positions with an eye to replacing a current full position that is not performing as well? Or is there another approach?
Thanks!
Sometimes in questions (or answers) "starter positions" or "partial positions" are mentioned. My question is, how should an investor best manage such positions in a hypothetical 20-25 stock portfolio (implying 4-5% as a full position), while maintaining this portfolio size? Should an investor buy e.g. 4 "starter positions" at 1% each and then consolidate into the one that does best? Or should an investor buy starter positions with an eye to replacing a current full position that is not performing as well? Or is there another approach?
Thanks!
Q: Hi,
I’d like to add a bit of nuance to your response to Delbert on May 2 about Canada’s macro circumstances.
In your response, you state that Canada has a debt problem. According to the OECD’s 2022 figures (latest available), Canada’s debt to GDP ratio is better than Japan, Greece, Italy, the United States, Brazil, France, Spain and Portugal. (https://data.oecd.org/gga/general-government-debt.htm)
Again, according to the OECD’s level of GDP per capita and productivity, Canada is essentially tied with the OECD as a whole. (https://stats.oecd.org/Index.aspx?DataSetCode=PDB_LV)
In 2023, the OECD reports that Canada’s GDP growth was 1.5%, beating Germany, the UK, the EU as a whole, the Euro Area as a whole, Italy and France, and nearly matching the OECD Area average (1.6%) and the G7 (1.7%). (https://www.oecd.org/newsroom/gdp-growth-fourth-quarter-2023-oecd.htm)
The OECD also reports that Canada’s corporate income tax rate in 2022 was 15%, beating all but 4 countries. Canada’s corporate income tax rate is lower than almost all of Europe (typically around 25%) and the US (21%).
Thank you.
Michael
I’d like to add a bit of nuance to your response to Delbert on May 2 about Canada’s macro circumstances.
In your response, you state that Canada has a debt problem. According to the OECD’s 2022 figures (latest available), Canada’s debt to GDP ratio is better than Japan, Greece, Italy, the United States, Brazil, France, Spain and Portugal. (https://data.oecd.org/gga/general-government-debt.htm)
Again, according to the OECD’s level of GDP per capita and productivity, Canada is essentially tied with the OECD as a whole. (https://stats.oecd.org/Index.aspx?DataSetCode=PDB_LV)
In 2023, the OECD reports that Canada’s GDP growth was 1.5%, beating Germany, the UK, the EU as a whole, the Euro Area as a whole, Italy and France, and nearly matching the OECD Area average (1.6%) and the G7 (1.7%). (https://www.oecd.org/newsroom/gdp-growth-fourth-quarter-2023-oecd.htm)
The OECD also reports that Canada’s corporate income tax rate in 2022 was 15%, beating all but 4 countries. Canada’s corporate income tax rate is lower than almost all of Europe (typically around 25%) and the US (21%).
Thank you.
Michael
Q: Hello,
A few years ago I read that Canada was on it's way to becoming a tax haven similar to what is offered in the traditional Carribean countries. Although my corporate tax rate is ok(12% or so) I am finding equity erosion from currency devaluation/inflation, closing off capital gains benefits, etc is outstripping my ability to grow/preserve my capital.
From seeing some of the upcoming
coercion like changes w.r.t. taxation, private property, etc and an anti-saving/working/investment mindset that seems prevalent in the press makes one think Canada has or is becoming a very unfriendly place for capital preservation and growth.
Is this a new phenomena?
Thank you for your sage counsel.
A few years ago I read that Canada was on it's way to becoming a tax haven similar to what is offered in the traditional Carribean countries. Although my corporate tax rate is ok(12% or so) I am finding equity erosion from currency devaluation/inflation, closing off capital gains benefits, etc is outstripping my ability to grow/preserve my capital.
From seeing some of the upcoming
coercion like changes w.r.t. taxation, private property, etc and an anti-saving/working/investment mindset that seems prevalent in the press makes one think Canada has or is becoming a very unfriendly place for capital preservation and growth.
Is this a new phenomena?
Thank you for your sage counsel.
Q: Hello,
General best practice question here on portfolio diversification based on a question asked many years ago.
1. If you were starting fresh with an equity portfolio, how many names would you choose and would they all be equal weight by name? Within that number, would you have a recommendation investing in a set number of ETF's?
2. Would you recommend adding stocks across each of the 10-14 sectors (or prioritize specific ones) and apply the same weight?
3. In terms of tax benefits, would you tend to hold US stock in a TFSA or RRSP? I seem to read conflicting views.
General best practice question here on portfolio diversification based on a question asked many years ago.
1. If you were starting fresh with an equity portfolio, how many names would you choose and would they all be equal weight by name? Within that number, would you have a recommendation investing in a set number of ETF's?
2. Would you recommend adding stocks across each of the 10-14 sectors (or prioritize specific ones) and apply the same weight?
3. In terms of tax benefits, would you tend to hold US stock in a TFSA or RRSP? I seem to read conflicting views.
Q: Hi,
We own both Atd (3% position)and PKI (1% position). Which is the better company going forward? I am thinking about selling PKI and buying more Atd and maybe also adding to ENB(2% position) All these companies have had sizeable pull backs. Just trying to figure out what has the best potential going forward. No tax implications.
Thanks,
Kerri
We own both Atd (3% position)and PKI (1% position). Which is the better company going forward? I am thinking about selling PKI and buying more Atd and maybe also adding to ENB(2% position) All these companies have had sizeable pull backs. Just trying to figure out what has the best potential going forward. No tax implications.
Thanks,
Kerri
Q: Good morning; I read an article in the G&M on the weekend regarding the remote possibility (should Trump win) that they may change how the US Fed operates; affecting its independence and role as the world currency.
Crazier things have happened and with 50% of my investments in $US it got me wondering - if the US Finaincial system were subject to such change, which currency could/would replace it? I’d be interested in your view of the likely top 3.
Thanks very much,
Dave
Crazier things have happened and with 50% of my investments in $US it got me wondering - if the US Finaincial system were subject to such change, which currency could/would replace it? I’d be interested in your view of the likely top 3.
Thanks very much,
Dave
Q: Do you think the copper trade has legs for those looking to get in at this time? Thanks,
Jason
Jason
Q: Everyone, I have a defined pension, aka income fund, that increases with inflation. Should I still have a diversified portfolio within my RSP / open accounts or can I take more risks with good quality growth stocks like CSU, the best of the best. Clayton
Q: With US GDP down and inflation creeping up, what is the FED to do now? Cut rates and inflation will increase. Increase rates and economy could crash. Are we headed for stagflation? In these times, how should investors proceed and which sectors do well and don't do well. For a long term investor like myself, how should we position? Thoughts? I'm high on Technology, Financials, Consumer cyclical, and Industrials. Thanks!
Q: Regarding your comment in an earlier answer: "We expect market volatility in November. ".... Why?
Q: I have a 5% interest rate on my bank account right now and because of this I'm way more cash heavy than usual. Does it make sense to hold a larger portion of cash when interest rates are so high?
Q: Hi Peter, It will be nice to get your detail opinion on today upcoming budget from investors point of view via a blog. Just a suggestion.
Q: Hello
I m wondering if your team has thought about a AI filtering / Help options for your Questions tab ? IMO I m noticing near 50% of the asked questions have been previously answered MANY TIMES OVER. This would allow other 5i members to save times not having to read the mulit requests on the same information.
This feature would most importantly allow the 5i moderator to focus on other NEW Questions, strategize on more / improved technical features (PA) for the platform or infact start to create member reports for the USA positions the moderators in fact hold and endorse.
This issue has really bothered me that many CDN TSX microcap positions have reports and endorsements (even on the 5i X acct) to buy while the 5iii moderatior doesnt in fact own them IE no skin in the game. FWIW many have very poor returns or get dropped from your T.A radar !
Just my thoughts as longtime PA Member
I m wondering if your team has thought about a AI filtering / Help options for your Questions tab ? IMO I m noticing near 50% of the asked questions have been previously answered MANY TIMES OVER. This would allow other 5i members to save times not having to read the mulit requests on the same information.
This feature would most importantly allow the 5i moderator to focus on other NEW Questions, strategize on more / improved technical features (PA) for the platform or infact start to create member reports for the USA positions the moderators in fact hold and endorse.
This issue has really bothered me that many CDN TSX microcap positions have reports and endorsements (even on the 5i X acct) to buy while the 5iii moderatior doesnt in fact own them IE no skin in the game. FWIW many have very poor returns or get dropped from your T.A radar !
Just my thoughts as longtime PA Member
Q: I would like to hear your thoughts on bitcoin miners as we approach the next halving date.
Q: Good Morning! On a macro level and considering the current high average P/E ratio of the S&P 500 would you be more inclined toward Canadian, International or Emerging market investing. I see that both Canadian and International markets are also priced above average, although not as much as the US. For Emerging markets India and China on the other hand are presenting faster growing economies (still China is much riskier in my POV but BABA might be a good opportunity). What are your thoughts ? Thank you.
Q: Morning 5i,
You may have recently fielded similar general questioning and if so I apologize for the repetition, but here goes. Almost exactly two years ago the market was at a high very similar to its current level and I was feeling very good about my holdings, but things turned south pretty quickly - especially in tech but in other sectors as well - and it's taken me much of the two years since to recover. Granted, at that time I was holding tech names like LSPD, ILLM, EGLX, XEBEC, DOC and WELL which have now been replaced by LMN, CTS, HTA, TXF, TXF.B and I have shored up the non tech end of things with names like BNS, CM, GSY, PRL, EQB, CNQ, TOU, SU, KEY, ENB, EIF, SIS, DHT.UN and MDA but I can't help but wonder - are we approaching that precipice again and if not, why not?
Is the market fundamentally stronger now, and more resilient, than it was when everything looked oh so rosy two years ago? Presently things seem to me almost too good to be true, and I think when that's the case they often are and I would sure appreciate your perspective on the year ahead. (Right now I feel like I should all and go to cash ...).
Thanks, and please deduct as you think appropriate.
Peter
You may have recently fielded similar general questioning and if so I apologize for the repetition, but here goes. Almost exactly two years ago the market was at a high very similar to its current level and I was feeling very good about my holdings, but things turned south pretty quickly - especially in tech but in other sectors as well - and it's taken me much of the two years since to recover. Granted, at that time I was holding tech names like LSPD, ILLM, EGLX, XEBEC, DOC and WELL which have now been replaced by LMN, CTS, HTA, TXF, TXF.B and I have shored up the non tech end of things with names like BNS, CM, GSY, PRL, EQB, CNQ, TOU, SU, KEY, ENB, EIF, SIS, DHT.UN and MDA but I can't help but wonder - are we approaching that precipice again and if not, why not?
Is the market fundamentally stronger now, and more resilient, than it was when everything looked oh so rosy two years ago? Presently things seem to me almost too good to be true, and I think when that's the case they often are and I would sure appreciate your perspective on the year ahead. (Right now I feel like I should all and go to cash ...).
Thanks, and please deduct as you think appropriate.
Peter
Q: My portfolio is not at all balanced because of the heavy weight of my Tech sector . I am reticent to sell any it. What would be the absolute max for a Tech sector?