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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: What is your near term market strategy with regards to the Fed set to begin tapering in one of the next four months? Thanks as always.
Read Answer Asked by Curtis on December 09, 2013
Q: I have had good success following 5i's advise on stock picking, so much so that my wife has decided to let me invest her rsp savings.(oh oh)I plan on following 5i's model portfolio with a few stock exeptions. My question is I understand that December is a turbulant month because of large investor sell offs for year end results. if you were me, would you wait for January or go for it now.
Read Answer Asked by david on December 06, 2013
Q: Hi,
In a recent question/answer exchange you cautioned about short term growth for BEP.UN but considered it one of your favorites for a park and hold investment. Could you provide a list of perhaps 10 of your favorite park and hold investments? Thanks
Read Answer Asked by Dave on December 05, 2013
Q: Dear 5i team,
What are you thoughts on the Canadian dollar, short term and long term?
Read Answer Asked by Arvind on December 05, 2013
Q: Good morning Peter and Team,

Is there a "rule of thumb" regarding re-balancing a portfolio? With the great performance of stocks like STN and BAD, as an example, are their weightings perhaps getting too high? OTOH, as another example, I'm reluctant at this time to add to Goldcorp,which is down substantially. Your advice, as always, is greatly valued.
Read Answer Asked by Jerry on December 04, 2013
Q: Potentially weird question - Do institutional investors participate in tax loss selling differently than individuals approach it? Maybe the same question could be posed for realizing profits too. I mean in the last few weeks I have observed some pretty big swings and odd volumes on stocks that have been typically stable throughout the year. Do institutional portfolio managers use now as a major time to rearrange their funds in anticipation of their big 2 month sell period to future investors (RRSP season)? Just trying to understand if there is an opportunity as an individual investor I should be looking to potentially capitalize on. - Cheers.
Read Answer Asked by Philip on December 04, 2013
Q: I found your answer to Andrew's question yesterday re selling to be most interesting. As I took quite a bath in '08 and '09, I have educated myself on technical analysis but my results in market timing have been somewhat less than satisfactory. But I am afraid of another loss like that of '08 and '09.

My question is, do you ever foresee the day when you might consider going to 100% cash in your model portfolio?
Read Answer Asked by Fred on December 04, 2013
Q: Hey guys, at any point will you guys suggest, due to market conditions, that equities might not be the place to be? I've been scaling back big time the past little bit with the thinking that this market is very unstable. One bad wind from the central bank can turn the lights out on this party. I guess what I am asking is how would protect yourself if you felt that the coming year was not going to be so pleasant?
Read Answer Asked by Seamus on December 03, 2013
Q: hello, 5I
A copy /paste from zero hedge just in case it would interest anyone:
“The correlation between stock prices and margin debt continues to rise (to new records of exuberant “Fed’s got our backs” hope) as NYSE member margin balances surge to new record highs. Relative to the NYSE Composite,this is the most “leveraged’ investors have been since the absolute peak in Feb 2000. What is more worrisome, or perhaps not, is the ongoing collapse in investor net worth - defined as total free credit in margin accounts less total margin debt – which has hit what appears to be all-time lows (i.e. there’s less left than ever before) which as we noted previously raised a “red flag” with Deutsche Bank. Relative to the ‘economy’ margin debt has only been higher at the very peak in 2000 and 2007 and was never sustained at this level for more than 2 months.”
No comments, although, yours would be most appreciated.
Thanks and as usual, publish only if it represent any interest for the community.
Read Answer Asked by claude on December 03, 2013
Q: Hello 5i. I have held MTL for the past 2-3 years and have been rewarded with growth of 25% (not including dividends). In recent weeks MTL has started slipping however and I am growing somewhat concerned with the large proportion of my portfolio dedicated to energy related stocks and infrastructure. So I'm thinking time for a change and am considering either POT or BEP.UN, both of which offer a resonable yield. I know that you are fans of BEP.UN, however I think that stocks such as POT and Agrium are on the cusp of moving up after a period in the doldrums. I would appreciate your input on my thinking,and whether you would choose POT or BEP.UN, or simply stick with MTL. Please advise. Thank you for your help.

Brian
Read Answer Asked by Brian on December 03, 2013
Q: Hi Peter, If you were putting together a list of 5-10 stocks to invest in starting now, and primarily your reported companies, what would it look like? Market balance is not important.
Thanks Tom
Read Answer Asked by Tom on December 03, 2013
Q: I have the sensibility that the falling dollar will provide some stimulus to our export oriented manufacturing base. Additionally , takeover activity will pick up as American companies go bargain shopping north of the 49th. I am unclear as to potential winners/losers with the EU free trade proposition.

Which industries/companies would you recommend as ~5 year holds for growth given a 90 cent dollar for the next few years.

Kind Regards
Rod

Read Answer Asked by Roderic on December 03, 2013
Q: Peter I notice in your model portfolio you 100%equities .
I have 26% fixed I classify callable preferred 2015-16 fixed along with my bonds and 7% cash.77% is equities and perpetual preferred.Any comments
Stan
Read Answer Asked by Stan on December 03, 2013
Q: Hello Peter,
I am looking for income generating ideas. What are the best Canadian & US sectors (for dividends) that are currently undervalued or fairly valued? Are the Canadian and US markets overvalued at this time? Should I wait for the next six to eight months to see the direction of these markets? Should I look at ADRs (Europe and Latin America)? What are your takes on individual and ETF preferred shares and corporate bonds?
I know I am asking a lot of questions. These are questions I think most of us here are thinking of as we look forward to 2014 and beyond.
Thank you and have a great day.
Read Answer Asked by Lucas on December 03, 2013
Q: Hello all:
My US and EAFE ETFs are way up on the year some as much as 30%.

Is now a good time to take profits on these or do you feel the US and Europe still have a ways to go?

Do you have a rule of thumb for when you take the profit from a stock or ETF?

Thanks for the great service
Read Answer Asked by Andrew on December 03, 2013
Q: Hi Peter, Would a ratio of 60% fixed income/40% equity applicable today for a retired person? With rates potentially rising, should the ratio be revised to 40% fixed/60% equity?
Also, would you recommend a high bond etf (like XHY) for a retired person, if so, what is the acceptable limit? Thanks
Read Answer Asked by Karl on December 02, 2013
Q: Aside from gold, what other sectors/companies do you believe have been oversold or present an opportunity on a value basis?
Read Answer Asked by Vince on December 01, 2013
Q: Hi Team,
Thanks for suggesting IWO (US small cap ETF) and IBB (US biotech ETF).
I'm up handsomely since buying in. I read your view about IBB a couple of days ago, but I'm wondering what your current view is about IWO.
I keep hearing mixed views about the space, but I only trust yours.
Keep up the good work.
Read Answer Asked by Marco on November 30, 2013
Q: Hi Peter & team,
I'm hearing more about DEFLATION lately and wondering what effect it would have on the markets. THANKS!
Read Answer Asked by Terry D. on November 29, 2013
Q: Peter,
As not much seems to matter anymore (LARRY SUMMERS THINKS THAT BUBBLES ARE "THE"PANACEA FOR BOOSTING ECONOMiES... Well.. we knew that all along, but neither Greenspan nor Bernake dared to say it openly before him but he obviously had the excuse of being rejected from the job lately and we understand his frustration..) I would be happy to share a little trivia on the market:

What was the lowest in 2002, 2009 for the S/P?
2002: 777
2009: 666

What was the Dow closing price on the first day it passed 16000
11/21/ 2013: 16009.99

The nagging question that remains is: will the Nasdaq close its highest at 5222, 5333 5444 5555 or 5888(5666 and 5777 have already been taken)?
who dared say blondes had more fun when we have Wall Street??

Cheers, and publish at your own discretion, of course!

Read Answer Asked by claude on November 24, 2013