Investment Q&A

Q: Peter - as people enter into the individual issues in the model portfolio (or a reasonable chunk of one) for Canadian holdings do you consider using a stop-loss to limit downside after a position is entered into? Thanks!

Q: I am trying to develop a check list of ratios or analysis essential for a do it your self investor to consider before investing. Could you provide some direction in this respect. Thanks.

Q: Hi Peter, can you give us some insight on the use of stops. I was stopped out on a couple of stocks latley that I planned to keep. How tight do you keep them? Do you use them? How to determine where to set them especially for income stocks? Tks

Q: thank you for your reply to mine re the model, as I start accumulating into the model, can you suggest which 5 stocks are least likely to a pull back in a market sell off assuming a spring market pull back i.e. the sell in May scenario

thanks again, cy

Q: Re the model portfolio, do you plan to incorporate on your site a live update of the model's performance or YTD monthly reports.
I already own several of 5i reported companies and wondering how to accumulating the model. The 5i "B rated and higher" companies not in the model that I own, should I consider these as adding "higher returns at a higher risk" or would you recommend selling these and putting the funds towards the model
Your views are much appreciated.

cheers, cy

Q: Hi Peter,

If a company makes an all time high does it merit an investment.
I bought kbl and wpk on those grounds coupled with your fundamentals and its working nice for me. It would also be nice to know when to book profits.

Thanks
Paul

Q: Peter; What would you think of a switch from a REIT to an oil company at this stage of the economy and the large price differential in western crude? Thanks. Rod

Q: Peter,
Thanks for putting out the model portfolio. A few questions.
a) What should the portfolio sizing be if the portfolio is say $50k or $1M. How many investments should be held in those?
b) How should we add to the portfolio on a monthly basis? Say someone had $2k to invest every month, how should that be allocated?
c) How would you categorize this portfolio like defensive, aggressive, growth etc. If this for example is a conservative growth portfolio, do you have plans to roll out other model portfolios categorized differently?
Thanks

Q: Do you advocate buying and holding through all market cycles or would you suggest a trading strategy that tries to take advantage of wide market swings and if the latter strategy is the best, what methods would you employ to identify optimum market timing strategies

Q: This is really a comment not a question. In early January I asked 5i for some advice on how to get into the market as an older, conservative investor unwilling to risk too much for fear of capital losses. The advice was to enter in carefully and purchasing a diversified portfolio - basically a balance of the B+ or better rated stocks and four large caps for even greater balance (26 stocks in total). Since then ATP has crashed by roughly 50% (highly unusual) but the good news is EQI and FSZ are up ~20%, BAD and BYD are up ~15%, ESL and KBL are up ~10%, the rest are either up or down but nothing drastic. All this to say my portfolio is still up over 2% in 9 weeks (~12% annualized) even though ATP crashed. The diversification protected me. No one's going to get it all right all the time. That's why the balance is needed. Cheers.

Q: Hi Peter and Team, apologies in advance to all but I need ask the following question; watched a fellow on BNN, Charles Nenner, a professor who has a mathematical system which has apparently been correct so far, so he says, that calculates the DJIA to fall to 5000...absolutely crazy, isn't it?? Have you heard of this fellow? He states that those who bought in 2009 are the ones selling into this ralley and going cash! He is all cash currently, so he says. Please see him on BNN today, and your thoughts on this would be greatly appreciated. I am currently fully invested with minimal cash on sideline. Thanks as usual!

Q: Hi Peter, This is just a general question. Funds in my company registered pension account are managed by Great West Life. Right now i have 100% money in high risk account (Leith Wheeler). I am looking at 10 - 15 yrs horizon. What would be the right approach as i can transfer funds from one fund to another fund like US Equity Index, conservative fund and bonds without paying any transfer fees??? Should i be moving money from aggressive to conservative in case of correction and move back to agressive once there is indication that correction is over. Thanks for the guidance

Q: Greetings Peter and 5i Team. Peter I recently saw you on Market Call/BNN...after hearing your philosophy I rushed to sign up to be a member of 5iResearch. Love it so far!
My question is, other than the top picks you gave on Market Call, do you ever publish a 'top picks list' here on 5iResearch from time to time ? Thank you...I'll hang up an listen ;)

Q: Hello 5I Team, just a thought on selling winners vs losers. I remember hearing a story of a car dealership that each month fired the weakest performing salesman. Sometimes I think that this may be useful information when it comes to investing. If you have a stock that is just not living up to your expectations may be it is time to fire it.

Q: Hopefully not an odd question, but I hear and read comments and investors talking about short, medium and long term in reference to their holdings. In your opinion, could you define your thoughts on actual timelines for each? I realize this is subjective, I just want you thoughts on how you might define them.

Q: i remember the saying water the flowers,pull the weeds. also the 6% rule of total amount investing per stock.does this mean still stay within the 6% rule.

Q: Hi Peter & Team:

I am trying to pay more attention to sector diversification rather than just stock diversification. Could you comment on and/or provide a resource to help in determining how best to achieve appropriate sector diversification ? How critical do you feel this is and what information or signals does one look for when, because of general market changes, there should be an adjustment ? How does sector diversification strategy change depending on whether your portfolio is for growth,or income or balanced ? Can you recommend a site that classifies Canadian and US stocks into industry standard sector descriptions ?
You mentioned that you are doing a 'model portfolio' - will this also incorporate what you consider to be the best current strategy for sector diversification and will you do updates of that as appropriate ?
Would it be possible to provide a 'sector sort' for the stocks that you comment on in your Report and Member Question sections ?
Thanks so much for a great stress-reducing practical and educational service !

Q: How much influence should we put on small cap's P/E ratios? Some very good looking stocks have very high P/E's: AVO @ 69, LEG @ 87, etc.

Q: Peter,

What should one do if you are fully invested and and you feel there is some sort of 5-10% correction on the horizon. Should one sell some positions or stay fully invested. If one sells some strong performers, at their 52 week highs, would that be a wrong move. What should be the srategy in such a situation.

Q: do you believe health sciences are a good investment, also what different types of stocks should be in ones portfolio to have a nice blend. your company is a godsend thankyou from the bottom of my heart and keep up the great work you are doing for common investors