Investment Q&A

Q: Hi Peter, I am finally picking up the courage to invest in the stocks in your model and summary portfolio in January 2014. What is the outlook for the next 3 years. I have more than $31500 to invest and am thinking of about 15 stocks at about 5% in each.
Thanks for all the great advice.

Q: Hi and Merry Christmas!
In recent posts the topic of a company (WIN,ESL specifically) being bought/sold (take-over?) has come up. My question is (although I hold both WIN and ESL)general: what, if any, criteria or factors should one consider in terms of whether to sell early, sell into the offer, hold on with the new entity/owner or ?? Are there any guidelines that apply across the board or is it totally stock/offer specific? Any thoughts would be appreciated. I did not see any Q/A address this in the Market Strategy area.
Best Wishes for the Holiday Season to you, staff and members!
Cheers,
Mike

Q: All things considered, technicals, fundamentals, and current outlook for the global economy and stock market would you say it's an opportune time to take a full position in your Model Portfolio or a half position? Why?

Q: HI 5i,

Now that tapering appears imminent, how badly do you think dividend stocks in my portfolio, like Telus, IPL, Suncor and PBH will be affected?

I sent you this question a couple days ago but haven't heard from you. (Perhaps i sent it to the wrong address?)

Thanks G

Q: A really general question but could you provide a prognostication/guess on the January markets in general. Do you foresee a major shift to the downside and should investors be more defensive than usual.
About 80% of my names are good dividend payers....but I have a few that would suffer when the tide goes out.

Q: RE DHX: I'm considering re-entering DHX after this gap pullback finds a bottom. Is there anything of concern at DHX fundamentally - is it still a Strong Buy? Is there anything else you would like more for capital appreciation in the new year? The fiscal cliff chatter will evidently be looming again quite soon - lol - Your thoughts going into 2014 are greatly appreciated. Thanks.

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.

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.

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

Q: Dear 5i team,
What are you thoughts on the Canadian dollar, short term and long term?

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.

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.

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?

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?

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.

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

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

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

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

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.