Investment Q&A

Q: Everyone, what do you see is the speed bump to worry about in the next three months and the next six months. Clayton

Q: There seems to be a lot of shifting of sentiment with regard to sectors and portfolio strategy.

My concern and question here my total portfolio; and Energy more specifically because recent news is suggesting a plausible $40 price for oil this year.
I would appreciate your thoughts on that issue

In addition , as a balanced to growth investor ( definitely not aggressive), my
Sector blends are: tech 19%/ financials 17%. / consumer cyclicals 13%/

energy 10%/ Communication services 6%/ industrials 3%/ real estate 3%/ consumer defensive 3%/. Cash 37%.

Knowing that there limits to what you can comfortably provide in terms of guidance I would appreciate your perspective on this sector allocation.

Thanks for all your help.

Q: On the XLB - long bond: during a dropping rate environment curious on what other sectors of the market have historically done over the same period you referenced. Utilities, Financials, Industrials and Gold. Might help to know as if you needed to raise cash to buy the XLB what sectors should it come from?

Q: Hello 5i
I am up $10,000 in the above companies and with 35 others I am up $125,000 in total in a $1,000,000 portfolio. Previously before the downturn I was up $800,000. I am a 77 year old value investor with a good pension.
Question: Should I take the $125,000 off the table, put it in an Oaken savings account at 3.4% and leave the rest invested?
thank you
Stanley

Q: why are these financial markets not a whole lot lower then they are now. there has been nothing but bad news in the last 3 years but we are still like we are in a bull market. are we getting set up for a major downturn? thanks

Q: So, this is quite a mess we find ourselves in. However, we will eventually come out of it. I'm curious, where do you think the best money will be made going forward? Which 3 or 4 sectors do you think might lead us out of the situaltion and what is the absolute best company, on most all metrics, in each of the sectors. I'm open to etiher Canadian or global companies. Thanks for your opinion.

Q: Tony Dwyer of Canacord Genuity talks about holding more cash now, being defensive and being ready to invest in early cycle sectors "when we come out of this later in the first half" of this year. Which sectors historically are early cycle sectors and secondly among those that are how have each performed relative to other such sectors when markets have rebounded in the past?

Q: Hi! Can't help but feel panicked but know wrong thing to do is sell. Your thoughts on this. Can you please provide outlook based on latest Credit Swisse Crisis and explain what is happening. It seems like everyday now we will hear of more failures. From someone with more knowledge can you please advise if we need to just sit tight with portfolios if holding quality dividend paying companies which one relies on for income. At a certain point will the Fed step in and cut interest rates if more systemic issues present? Thank you!!

Q: Good morning, you have mentioned several times that Covered Call ETF's work best in sideways markets. I have the feeling that we will probably see the Markets basically moving sideways for a while. What is your opinion, thanks?

Q: Could you explain why banks are not doing phenomenally well given the interest rate increases?

I understand that it may lead to fewer loans and some defaulted loans, but surely floating-rate loans and the higher interest of new loans would far out-profit these.

On that note, would you recommend locking in a floating rate mortgage at this point?

Q: Peter; Do you think Powell would dare to do a 50bp hike in the face of the SVB debacle- could this actually be a silver lining for him ? Thanks
Rod

Q: Dear 5i team.

Here we go again with the annual US debt ceiling shenanigans.
This time seems to be a little different as the level of crazy appears to have ramped up in the US political sphere.

May I ask for your collective professional views on what your crystal ball says the possible initial market reaction (bond/equity) might look like assuming they DO NOT come to agreement in time, this time around?
Is there a preferred position on Bonds you would suggest if such a scenerio materialized?

Look forward to hearing your views on this.

Q: Hi there,

Is the collapse of SIVB an isolated event, or do you think its an indication or something larger happening under the hood of the financial markets? Is it possible that this could lead to a huge market correction to the downside across all sectors?

Thanks!

Q: Hi Team,
So...first the crypto banks start to fall. Now SVB bank looks to be collapsing, I have heard due to the impact of rapidly increased interest rates. What happened here? Should we be worried about a domino effect here similar to 2008? (hope not!) I typically thought high rates are "good" for banks...to the point where the economy starts to come to a standstill that is. Thanks for the insight.

shane.

Q: Peter; Is there a way to track the US dollar ? Thanks
Rod

Q: Greetings, 5i Research,

Thank you for your authoritative answers to my previous questions.

Outside my tax-advantaged accounts, I plan to sell just-in-the-money, cash-secured puts on SPY on Mondays, expiry dates on Fridays of the same week. I expect to be assigned half the time. When assigned, I will own SPY, which will allow me to sell just out-of-the-money covered calls on the security. I will repeat the process when assigned, and sell just-in-the-money, cash-secured puts again.

My question is what are the risks of this approach?

Thank you.

Milan

Q: In general, do publicly traded companies suffer as steeply as consumers when interest rates are high? Does their debt level directly amplify that pain or do they hedge with loans at fixed rates, use preferred shares to fund large expenditures, and the like? Are there sectors or specific companies that are truly strained by interest rates?

Separately, my mental model is that when oil is in high demand the CAD should be relatively strong against the USD. I hate converting at $1.40 per greenback. Yikes. Are there obvious factors that suggest the CAD should strengthen, stay the same, or weaker further?

Many thanks,

Q: A recent guest on Market Call stated that while we have been in a dis-inflationary cycle for decades, we are now in a re-inflationary period which could go on for a long time. This means interest rates continuing to rise in steps over perhaps several years. First, could you comment on this view. I would like to hear your ideas about the direction of near term interest rates, as well as long term. I know that this is a predictive type of question but I highly value your opinions. Secondly if we are indeed in for a long stretch of gradually rising interest rates could this possibly mean a long term decline of growth stocks, or at least the ones that are not yet profitable. Thank you.

Q: Good afternoon folks
I listed to Robert Kessler on Consuella Mack show called Wealth Track on Sunday. He is very convinced that we all should get out of stocks and go into US LADDERED TREASURIES. He feels the market will be very bad for 15 years or so. What is your take on his view?
Thank you all for your guidance through the good times and the turbulence. I've been with you for almost 9 years now and highly recommend you.

Q: What do you make of the thesis that the next decade will not belong to tech stocks but instead to commodities? I have always avoided commodities, believing the the cure for high prices is high prices (lithium for a recent example). Once interest rates start getting cut, won’t we just be back to tech stocks looking like the best area for growth again?