Investment Q&A

Q: I am getting concerned about inflation, mostly in the U.S. Most of Trump's policy preferences, from removing illegal immigrants, to tax cuts and tariffs seem inflationary, and if he wrests control from the Fed, I don't see how inflation stays under control. What are your thoughts on this and what would you be watching? Finally how would one, as an investor, respond to signs of very high inflation? Thank-you.

Q: What sector do you think has a better outlook for the near to medium term: Oil and gas or banking? I have a bit of capital to deploy and was leaning towards a decent yielding dividend ETF in one of the 2. (If you don't want to be pigeon holed to either/or I could split it between both sectors or if you have a different sector suggestion that's more compelling I'm open to suggestions...)
Thanks very much

Q: Good Morning

Just finished reading The Psychology of Money for the second time GREAT READ
what other books are high on your list of reading

Thks
Marcel

Q: at 1.40 and heading lower, why would anyone invest in Canadian stocks or bonds for that matter.?..also why cant the government get their house in good financial order to show to the rest of world that we care about balancing the budget? pissed off snow bird...

Q: there are some well known professionals predicting the USA stock market currently points to a bursting bubble , and investors should allocate heavily into bonds to protect the portfolio.If the risk of this happening is drawing near, will the Canadian markets suffer the same fate ?

Q: Is it time in the market that truly matters instead of trying to time the market?

Q: Hi Peter & team - I've seen you, and others, say there is still lots of money "parked on the sidelines". How do you know this? Where is it parked? And how do you know it will be deployed in the market? Thank you!

Q: I turned 71 this year and I am pulled between GROWTH & DIVIDEND stocks in my RRIF starting in January. Am I wrong in thinking that it does not make a difference, if: (I do have growth stocks in my Cash & TFSA accounts).
My Tech & other Growth stocks appreciate by 6% or more and I withdraw 6 % via my RRIF, or
Withdraw 6% of my Dividend stocks? Compounding does work, as I bought $20K of RBC a few years ago @ $112 & is now @ $172. Tried the same with TD which did not work.
Obviously, the idea is to not deplete my assets by the RRIF withdrawals? Am I right in my thinking?

Thanks!

Q: Good morning,

Recently I have become concerned about the potential for a US sovereign debt crisis. From my understanding the amount of US debt is growing at an unsustainable rate and eventually it will become apparent that the US cannot pay back its debt while offering a real return to investors. Once this happens the US will have an issue borrowing money because there is a lack of lenders which will lead to them either having to cut back services (which would almost certainly cause a recession), defaulting because they can't roll over their debt (also causing a recession) or trying to change the rules of the fed to try and print the debt away (which would cause almost nobody to lend money to the US government again and almost certainly cause hyper inflation). To me any action that would involve cutting back services which would be better for the long term but really bad (and political suicide) for the short term would probably not be implemented because the politicians would be voted out. This line of thinking terrifies me and I am really hoping that I am missing something. Am I correct with my analysis? Is there anything that I am missing?

Thanks,
A

Q: Donald Trump has previously signaled his desire for a lower US dollar. JD Vance has recently signalled an even stronger desire for a lower dollar, saying it would bring manufacturing back and calling China a currency manipulator. And if history is any indicator, Vance will be running just about everything in the day-to-day operations of the White House while Trump golfs and engages in twitter wars with celebrities (as Pence did 4 years ago). Right now most of my US holdings are in unhedged ETFs. Would it be wiser to shift some of that over to hedged ETFs? If the US starts trying to lower the dollar how quickly would that happen?

Q: What are some canadain companies that could do well under a trump administration

Q: With the election behind us and changes in the market, is their a need to currently own Consumer Defensive stocks like KO or MDLZ or wait for a better entry point?

Q: Where would 5i see things in terms of an ideal cash level in a portfolio today? Fully deployment or is there a % you would reserve in cash for opportunities in a bad day/week/month? Would you agree that volatility should be expected in the months ahead based on Trump's comments moving the market as they did in the past?

Q: Trump said he would pay down Debt and Lower Taxes

How about this ? Pres Trump will put on Tarrifs , What if he applies ALL Tariff Money raised against paying down U S Debt. It is like a tax on American Consumer anyway and in this way he pays down U S Debt ,

Is that idea too much off the wall ? I think it is a great Idea ,

RAK

Q: What is your opinion on using trailing stop loss orders to protect unrealized gains?
If used, is it better to set a trailing stop as a percentage or fixed amount?
If a percentage, what percentage below the current price would you recommend?

Q: Lots of volatility based on the election results. This may be too early to ask, but are there any stocks that have risen (or fallen) too much on fundamentals as a result of the election? Looking for potential sell (or buy) opportunities if you think appropriate.

Q: Everyone, what are the next headwinds and when will they show up in the markets. Clayton

Q: Hello 5i,
I caught a headline on BNN regarding BofC sentiment around interest rates. I took from it that the BOC might be poised for a much larger cut than it has done so far, perhaps 0.75, even 1.0 bp cut. Now, with a Trump win and policies that could fuel Canadian inflation by increasing the cost of U.S. imports on the one hand and a potential dampening effect on the Canadian economy as whole on the other, do you see any strong sense of direction for Canadian interest rate policy for the next meeting in December?
I know this kind of prognostication is problematic, but I would value your insights as to what Canadians might reasonably expect from the Bank of Canada on Dec. 11.
Many thanks for any analysis you can provide.
Cheers,
Mike

Q: 5iR recommends 20% for income, 40% for balance and 40% for growth. At the same time, 65% for US stocks and 35% for Canadian stocks. How do I combine or mix these two recommendations between Cda and the US? Like what % of income should be Cda vs US and ditto for Balance and for Growth?.....Thanks muchly for the assistance!......tom

Q: If the S&P were to drop 5-7% as Fund Strat is suggesting between now and the end of November, are there any specific stocks or sectors that 5i thinks would be hurt the most.

FS has an enviable record of calling market trends accurately. And not being doom and gloomers. In fact they are still calling for further upside in total out to the end of the year.

Of course no one is right all the time. But I have been looking to raise some cash and this might be a good time to do so.

Thank you for your help.