Investment Q&A

Q: I'm down on these stocks, what are your thoughts currently and prospects going forward? Buy, sell, hold, add? They've all become less than 1.5% positions. Thanks!

MED, NVEI, AC, LUN, EGLX, U, AT

Q: what are some good things to keep in mind that help you keep things in perspective regarding the fluctuations and negativity.. for me its having a rational solid response to a quarterly earnings thanks for the help

Q: So many of your recent answers to member questions have statements like:

"will need a better market environment to perform better"

"it will need a 'good' market to perform"

"A better market will see this stock rise sharply"

"it is still an expensive stock and will only work well if the market co-operates"

It is almost like you are blaming the market for the poor performance of so many stocks. Like how companies blame the weather for their poor results -- but their competitors had the same weather.

So, what do you mean by a "better market"? What has to happen to be in a better market environment?

Paul

Q: If you had the opportunity to invest in a couple of energy plays like ATH or TVE versus the Consumer Defensive/Cyclical like L or ATD at this recessionary like time, where would you put your money?? Dennis

Q: Is there a China bank crisis looming or already here. What is your opinion on the effect on the world economy, commodities, and stocks. Thanks for your insights.

Q: As we progress through the dog days of summer and possibly approach the winter of our discontent, the number of questions being asked of 5i seem to be lower at this time. Is this a summertime normal occurrence? Otherwise, is it possible that the number of questions asked day by day could be a useful metric of investor interest in the stock markets. If so, then as the number of questions increase, could this indicate that the market is in the road to recovery. This would not be a “bet the farm” metric but would appreciate your thoughts on the matter.
Thanks for your valuable service.
Cyril

Q: With growth and upside being the case for buying stocks with no earnings and having a lot of them losing 80% in value over buying a stock with good earnings and less growth, is it the same story now for investors to buy the growth stocks that they may be down 80% and hope that the stock can come back when the market gets overpriced again, or lower your greed and be happy with a 10% yearly return.
Thanks again

Q: I get raising the interest rates to stem inflation. However most economists are signaling a good chance of a recession or slowdown by year end. That obviously would call for lowering the rates. Is this scenario likely.

Q: In another question, you answered: "We believe that inflation will moderate into 2023, interest rate hikes will be paused sometime in Q3 or Q4 of this year, and a recession to last until Q1 or Q2 of 2023."

With this expectation, what are some good sectors and stocks (trading on the TSX) to be in in this environment?

Q: Hello 5i Research Team
I read today that the BOA team survey team said that we have witnessed the full capitulation In the market.Please provide me with your thoughts.
Thank you for your guidance.

Q: Hi 5i,
this question is about stock Beta and standard deviation.
Do you think these metrics hve practical use?
If yes, which stock Beta and Standard Dev. would you typically use (3 Years?).
Do you know where I might find 1, 2, 3, 4 and 5 year metrics for these.
Your web site reports Beta but, what year is it reporting?

Q: How would you allocate a large amount of cash in todays environment?
Lump sum or DCA?

Q: I have a sense that retail investors are still buying the dips and we haven't seen real capitulation. Do you have any data sources that would help to inform this thesis?
Thanks
Mike

Q: I am interested in what 5iR thinks of one investing in TD’s fixed income TD Bank Semi-Annual Pay Step Up Extendible Notes July18 2023 to July 18 2025. The coupons rates are Year 1: 4%, Year 2: 4.4%, Year 3: 4.8%. With today’s volatile stock market is it better to invest in this fixed income vehicle instead of stocks. Thanks … Cal

Q: Today Jeremy Siegel was asked about the main sources of market returns for investors i.e. multiple expansion, dividends, earnings growth, stock buy backs.

The person asking the question said that over the last 10 years 40% has come from multiple expansion, 15% dividends, most of the balance from earnings growth.

100 years ago 50% came from dividends.

The Q then was “ where will the returns come from in the near future?”

His answer focused on the massive role played by STOCK BUY BACKS.

Finally my Q:

Do you agree with that looking ahead this will be a major source of stock returns ( vs multiple expansion and dividends)?

Is there a filter to ID companies with the highest buybacks( similar to historical data on dividends)?

Thanks.

Q: The dot-com bubble of 1999/2000 exposed investors to risk that legendary investor Sir John Templeton called "temporary insanity" ultimately resulting in Nasdaq's 78% decline from it's high. Just over 20 years later, one could argue, the same sort of "temporary insanity" took hold and we have now seen only a 30% decline with many high-flyers losing 75%+ of their value yet for some reason still are getting recommended. An current example would be Lightspeed. It went public at $19 and ran all the way close to $160, up almost 800%. Now it's around $26, down around 80% from the high. Upstart would be another one.

Solid companies such as Cisco & Qualcomm survived the dot-com crash but never reached the earlier stratospheric valuations again.

Question: What makes this time any different for growth stocks? Or should growth investors really temper their expectations? I can't imagine these and many other surviving companies reaching those lofty levels again....and certainly not in the near future.

Q: Hello:

I would like your opinion, in general, about commodities and their path forward, especially precious metals and oil. At what point are we in the commodity cycle and what is the timeline that you foresee for it? Do you have any specific predictions about oil and metals? Thanks. Flo

Q: Jennifer Gauthier in the Globe presented an article indicating that some of the key drivers of consumer price growth are declining. ie. oil (WTI) drops below $100, wholesale gas price drops 7%, lumber prices are a fraction of their pandemic peak, freight rates on major shipping routes have fallen 40% since September 2021 but remain a lot higher than pre-pandemic rates.

By contrast, Eric Lascelles Chief Econ. At RBC Global Asset Mgmnt. is quoted as saying that inflation has spread to a wide range of products rather than just a few key drivers and he believes that inflation has not yet peaked.

I have a few questions after reading it.

Do you agree with these assessments?

I suppose the way to know that inflation has peaked is to see it drop. Would it be unlikely to rise soon after once the market signals it’s peaked?

At the peak, do you see any sectors rising quicker than others?

Do GIC rates quickly start coming down once the peak is signaled?

Q: Hi all,
I feel right now like playing Sleeping Beauty. To sit tight on my choices, ignore market moves and wake up in few months. Mind you I already sold some stocks for profit or loss, but no rush to buy back. Breathe, enjoy summer, friends and family. All be well. Waiting for the Prince, Denise.

Q: Since I have no interest in fossil energy stocks and don't need Real Estate stocks since I hold properties. Where should I overweight to get a decent weighting in other categories?

Thanks

Yves