Investment Q&A

Q: Other than stocks vs bonds, please list your favorite uncorrelated asset pairings to include in a diversified portfolio. Thank you.

Q: Under present circumstances I find it difficult to determine at what stage we are in the business cycle. Could you overlay the business cycle and market cycle and indicate where you think we are and how this will influence one’s investment thesis?

Q: Like many here I am nervous about buying fixed income in the current situation. You often mention that most people will be sorry when things turn around and stocks fall. Well, I get that. Even though we would have enough to survive even with a fairly large drop in the value of stocks. But, I realise that it would not be fun. So, what to get in terms of fixed income. I have mentionned in other questions that I would be inclined to get something completely sure for this component of a portfolio. Unfortunatly, it is likely to lose money, when inflation is considered. So, is it worth it to go further afield and enlarge the fixed income space? Here is what a popular blogger writes about this question. I would appreciate it if, with your experience and judgement, you could comment on it:

Another fallacy to dispel is that the 40% of a 60/40 should be in bonds. Nope. Many govy bonds suck and will be creamed as rates rise. So this is a really bad idea. That fixed income portion of the portfolio should be made up of short-duration bonds, some corporate invest grade issues, a floating-rate bond ETF and a healthy weighting of rate reset preferreds, which rise in value along with the prime.

thanks as usual for the great service

Q: Some stocks you recomend from recent tax sale.(OVER BITTEN)

Q: Everyone,
When do you believe people will be buying for 2022? Have they been buying a little, normal or above average going into 2022?
Clayton

Q: Any thoughts on the fear of an increase on the capitol gains inclusion percentage being raised and the influence on the current stock market dip.

Q: Pardon my ignorance if I’m missing something with this question. I understand that the market worries about leveraged companies in an inflationary environment, and that is a legitimate concern with real consequences. But at the same time, as the price (in dollars) per unit of value increases, so must the price of those same companies that have a tangible value. Holding a company whose stock price might decline in the short to medium term due to market worries but whose fundamental value will eventually be measured in more dollars (ie a higher share price) due to that same inflation seems a whole lot better than holding cash whose buying power erodes as the price per unit of value increases. Is that a fair argument?

Q: Hi Peter,

In this downtrend market could you please give your three best stocks to buy for 3 to 5 years hold in each sector in canada and US as well ?
Thank you for your best advise on this platform.

KT

Q: Not a question, just an observation. Evergrande is in the (mainstream) news again this AM Dec 9. Blackrock is being reported as being the second-largest institutional holder of Evergrande shares, and I wondered what impact there might be on my portfolio specifically as regards my holdings in XAW. In looking on Blackrock's site for XAW's holdings, I found that out of total XAW holdings of $3.8 billion, Evergrande accounts for a mere $21 thousand, less than 0.01%.
I haven't looked at other iShares ETF's, but as far as XAW is concerned -- I'm not worried.

Q: Assuming rising inflation and interest rates, what are your top two or three security picks? In Canada please.

Q: Hi 5I team,

Can you please provide your investment strategy view on sector level for 2022? Will raising interest rate put Utility and Technology sectors under pressure? TD monthly e-report recommends to overweight on Financials and Energy sectors and underweight on Utility and Tech. Do you tend to agree with it?

Thanks,

Q: Hi 5I
I have $180,000 split evenly amongst above companies in RRSP. I was going to begin withdrawing $10,000 every year and am looking for strategy to draw down to maximize growth of account. Is there a ranking of companies to sell first, or take a bit from each? I like them all so tough call for me. Appreciate all your advice since my initial membership in 5I.

Q: Good day.

What are your thoughts on Evergrand. Which markets would you suggest would feel the default

Are there Canadian stocks to stay away from

Thank you as always for all your terrific research

Q: What’s your guess behind the big move in the Nasdaq yesterday? Were you surprised with such a big pop in one trading session? With info leaking that Omnicron Variant is as bad as Delta, what’s your forecast for the remainder of the year and moving forward?
Cheers

Q: Hi
The income model portfolio contains about 2% fixed income/bonds. Is the model portfolio meant to be followed as it is or are investors to decide on their own allocation to fixed income/bonds? I have been disappointed in my bonds. I know they can help soften the blow in a market crash but this is pretty expensive insurance so to speak. What is your position on bonds? Should one be increasing their bonds at this point in the market?
Thanks

Q: Looking forward to 2022 I think there is a recession coming at us. (Personal Opinion). Looks to me that growth companies are going to continue to face severe headwinds. I also think industrials, financials, energy, and health care will be the sectors that will start to outperform others. Of course I'm open to debate regarding my choices and welcome your opinions. However, I would appreciate 3 or 4 examples of companies that you believe are set up to outperform in these sectors. If I've missed any sector please feel free to add your ideas. Thanks for your valued suggestions.

Q: Hi, My respected 5i team
Could you please recommend 5 solid names to buy in Canadian and US markets respectively when there is a market correction? Do you think it is a good time to buy them now during the current market drawdown?
Pls list the names in the order from your most favorite to the least. Thanks in advance!

Q: Do you think that Nasdaq stocks are now more attractive as a result of the steep drop in U.S bond yields.

Q: Hi Team,
My stock portfolio has dropped a gut wrenching 12% just this week alone, and 27% since august. All while the index's are near highs. I am aware most my stock holdings are aggressive tech names, but I am confident they are all best in breed names. I hold many of 5i US tech name favorites as well as some cnd. Its's a bloodbath like I haven't seen since the initial sell off when covid hit. At that time, I remember 5i came out with a very good "near bottom" report advising subscribers the end may be "near". As I recall it was very close! Thank you for that! What I am asking now is...will you issue such a report when the time comes as to when to potentially add to high growth tech names that have been crushed on no merritt of their own? Or can you say now if that time is near? And what stocks, either US or Cnd would you be adding to for 5yr plus holds that have the potential to make an exceptional recovery? I know this is a crystal ball question but your track record is good in my eyes! Thanks for your service. Look forward to some "calming" advice.

Q: On 25 Nov my portfolio dropped 2.4%.
On 30 Nov my portfolio dropped 2.7%.
On 30 Nov, still stinging from the 2.4% drop, I was watching the 5i questions but nobody was asking about the stock rout. I assume most investors were reviewing their positions to see what their exposure was.
I didn't do anything at all. But I kept watching for questions and related guidance.
Can I have your advice on what to do on a day like yesterday, where Bloomberg said futures fell due to Omicron so this was a forecast I could have acted upon. Also, the Fed was said to be more hawkish due to inflation and was going to accelerate completion of its bond buying program. Probably a few other significant factors. In this type of market, did I do the right thing? Or should I have been trading my riskier positions yesterday? My intuition says I should have done more earlier, but when I saw no related questions coming, I assumed investors were busy trading to have less exposure.
Just a few thoughts from the wounded.