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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: With the current rate rise most likely near the end , isn't it normal that the income stocks rally first?. Thereafter if the feds relay a slight slower change in the rates adjustments, the tech stock take off?
Read Answer Asked by adam on October 25, 2022
Q: In today's Larry Berman's BNN Educational segment, he referenced last Friday at 8:52 am...when the US Fed announced a "pivot", whereby they would probably raise rates by 0.75% this week but that they might slow down the rate hikes thereafter...my paraphrase wording.

Your thoughts and/or reaction?
Thanks...Steve
Read Answer Asked by Stephen on October 25, 2022
Q: Generally which size companies provide the best returns after a decline we have experienced,?
All of the above 3 companies ( small, mid, large cap ) are well run with good financials and should be able to ride this out. Is the small cap story played out with investors staying away for a protracted period ? Are mid caps are of the right size to be seen as safer, more liquid,? Are large caps just too large to grow ?
My question is not on these specific 3 companies but is more general in nature as to where to look for best rebound returns. Thanks
Derek
Read Answer Asked by Derek on October 24, 2022
Q: Hello Peter, Ryan et al:

I know you have answered this question asked by different people! Still, here is a repeat! If only to clarify some of your previous answers.....

How do you differentiate between Bear market rallies and the onset of a new Bull market after a period of correction? Many seasoned pros including some wise old folks who have been around, both Technical and Fundamental analysts, seem to say that the bottom isn't in....yet! Thee will be capitulation. Wait and watch.

As a true subscriber of this newsletter, I have funds allocated in different baskets. However I know that I have to move some of my cash positions if I want to benefit from the new Bull market. Hence this question.
Many thanks.
Mano
Read Answer Asked by Savalai on October 19, 2022
Q: Hello 5I,
Just heard a talking head say it could take 10 years for the Nasdaq to recover as it did in 2000. Thoughts? Seems to me that was a crazy bubble and maybe this one a small one? Appreciate your opinion.
Thanks
Read Answer Asked by Tyler on October 16, 2022
Q: With heavy losses in margin accounts do you think only BANKS AND INSURANCE companies will benefit from rising interesr rates?
Read Answer Asked by Nizar on October 16, 2022
Q: There is a thought that the equity market will improve once there is an outlook for interest rates to decrease or at least not continue to rise. I recently heard a discussion that suggests this is not the end of the story because the turn in interest rates will only happen when inflation is brought down and that inflation will only come down when businesses cannot increase or will probably have to lower prices. When their prices go down, Corporate profits will drop significantly. It seems to me when Corporate profits are dropping, equities will fall even more, and as such there will be a long time to go before the market recovers. Your comment about all this please.

Many thanks.
Read Answer Asked by Leonard on October 16, 2022
Q: I realize these can differ by industry, but what levels would you consider solid when looking at FCF%, P/FCF, ROA and ROE metrics? Thanks
Read Answer Asked by Michael on October 15, 2022
Q: My US ETFs are a significant percentage of my portfolio and are unhedged. Given the strength of the US dollar, do you think it is time to consider selling these investments to purchase the hedged versions? Do you think the US dollar will continue to strengthen against the Canadian dollar or will this trend reverse?

Thank you for your excellent advice.
Read Answer Asked by Dale on October 14, 2022
Q: if SMRs [ small modular reactors ] take off , what businesses and spin off companies good really benefit from power producers of this sort ? thanks , have a super week.
Read Answer Asked by jim on October 13, 2022
Q: We are a retired couple (63,62), living in our paid-off house, no pensions, with only registered RRSP investments to fund our retirement, drawing down RRSPs for last 5 years. We are concerned with our YTD RRSP return (-15%) in our Balanced/Growth portfolio (85-15).

In general terms, given current market conditions/recession risk, what asset allocation would you suggest going forward? Thank you.
Read Answer Asked by Paul on October 13, 2022
Q: It seems that a lot of the financial press seems to expect a rally when the US Fed stops increasing rates. Wouldn’t this rally just be another bear market rally? We would still have to enter recession, perhaps in Q2/Q3/Q4 of 2023. The actual rally that sticks, ie. the beginning of the next bull market, would be the one predicting the recession’s end and the subsequent rise in earnings right?
Read Answer Asked by Michael on October 13, 2022
Q: Hi 5i:
I've been away for a while and not keeping up with Questions, so this may already have been asked and answered. if so, please provide a link to the answer.
I'm hoping you could advise what sectors you think will reverse the current trend and begin to appreciate in value more quickly than others and, also, if you could identify three or so names you would expect to 'lead the charge' in each of those sectors.
If time and space permit, any commentary you might have regarding each identified sector and/or name would be appreciated. Thanks!
Peter
Read Answer Asked by Peter on October 13, 2022
Q: I am sitting on significant cash holding. I understand that predicting the bottom is not a strategy, but I am looking at taking advantage of the recent pullback.

Given that most predict we are heading into a recession, is deploying 1/3 of the cash at this point a good strategy and deploying the remainder over the next 6 months.

I am looking for Income and growth over the next 3 to 5 years. I was looking at FTS, BIP, SLF, ENB, AQN, RY, TD, BCE. Is there any of these names you would not buy now?

Thanks
Tim
Read Answer Asked by Timothy on October 12, 2022
Q: We are holding cash to invest. Do you think the market will steady in the near future or should we keep holding cash for a better opportunity to invest it. Do you have any time line in mind.

Thank you
Read Answer Asked by Vicki on October 12, 2022
Q: Jamie Dimon, CEO of JPM has put a scare into me. Earlier this year, Dimon had asked investors to brace for an economic "hurricane". Due to runaway inflation, big interest rates hikes, the Russian invasion of Ukraine and the unknown effects of the Federal Reserve's quantitative tightening policy, he is predicting some kind of recession six to nine months from now. Dimon said the S&P 500 could fall by "another easy 20%" from the current levels, with the next 20% slide likely to "be much more painful than the first. Yikes.

Can you give your perspective on his predictions, please.

Carl

Read Answer Asked by Carl on October 11, 2022
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