Investment Q&A

Q: In your opinion, which sectors of the market would you consider to have the best momentum for the remainder of 2021? Would it be tech, biotech, health care, industrials, mining, gas & oil, or value stocks? Which areas to you predict to be most promising in Canada or in USA? I am wondering where to put some extra cash.
Thanks.

Q: Retired, dividend income investor. I'm curious of your reaction to mega-investors such as Buffet and Lee-Chin, who have substantial hordes of cash (in the 50% range). They were in the news in the last couple of weeks, basically indicating that the time in now, to increase one's cash allocation. They are finding it difficult to find value in the market and certain sectors are in bubble territory (my understanding of their message).

I know that there are investors on both side of every trade. I also understand that if one removes the biggest names from the S&P, that there is reasonable valuation still there. My own personal belief is we still have room to go, due to low interest rates, increased vaccination rates, recovering economies, reflating the supply chains around the world...the list goes on.

I normally am fully invested, with virtually no cash. However I can't help but wonder whether I shouldn't increase my cash allocation...even though that puts me in the camp of "market timing". I suspect part of your answer will be to increase the cash to your level of "sleep at night" comfort.

Just curious of your thoughts on where we are in the market cycle. Thanks for your help....Steve

Q: Hi,

I'm seeing more and more evidence for inflation being a real thing that is not yet formally accepted by US or CDN governments. Evidence is obvious increases in the price of some common items (food, lumber, metals, housing) and also an uptick in commentary on the subject by some trusted SA authors.

Can you provide some sectors that typically benefit from increases in inflation (Gold, Finance, etc) as well as some specific company plays that would benefit from increases (Can or US).

Thx,

Cam

Q: Good Morning,
My portfolio, although generally diversified across all sectors, is definitely tilted toward growth stocks and technology. It reached peak value in mid-February, but things have gone downhill since. The market shift to value, materials, financial, and industrial stocks continues to push my personal NAV lower. I know this is driven by the fear of increasing interest rates and inflation. I have only made some minor tweaks to my mix of holdings, but in your experience, is it time for investors to lighten up significantly on growth stocks, or will the pendulum swing back with so many positive earnings reports. Of course, this is somewhat of a market prediction question, but do these trends last for years? My investment horizon is about 5 years. Any insight would be appreciated. Thank you for your excellent service, which (by the way) is attributable to substantial gains in my portfolio since I became a member.

Brad

Q: A few questions about the blog article "The Bigger Short" by The Intercept. Do you concur with the thesis that there could be a crisis in U.S. commercial real estate due to the overstatement of the retail borrowers ability to repay loans and mortgages and the repackaging of such loans into trusts (similar to residential mortgages before 2008)? If I read it right U.S. banks and other lenders could be in jeopardy. Would there be a similar situation in Canada and would companies such as BAM.A be susceptible. No rush on answering and take as many credits as necessary. Thanks.

Q: Hi... your thoughts on QSR now and the quarter. Is the turn around at Tim Hortons beginning to take hold or still too early to say?

thx. Mark

Q: Good Morning,
Any idea what has been driving the Canadian Dollar higher, and do you see this trend continuing?
Thank You

Q: How seriously do you take the possibility of a significant near term market downturn in your current market buying / selling decisions?

Q: In a well diversified portfolio, thanks to Portfolio Analytics if one wanted to be overweight in one or more industries which would you pick? Which would go underweight? Long term holder but don't mind playing trends as the post pandemic era comes to fruition.

Q: What do you think of this twenty stock dividend portfolio for a taxable account? I am focusing on high quality and it yields about 3.8% . Any changes you would make?

Q: "President Biden's plan is expected to call for a 39.6% top tax rate on long-term capital gains, up from the current 20%. The tax would apply to returns on assets held more than a year and to taxpayers with more than $1 million in income." If this proposal becomes reality, do you expect an impact on stock markets?

Q: What would you invest in when inflation is a problem?

Q: As a general rule how much of one's portfolio should be in US dollars to hedge currency risk?

Q: I realize that you do not have a crystal ball however my concern is over the Covid Variants especially the ones in India. There is a suggestion that some of the variants may block the effectiveness of the vaccines. If this becomes a huge issue, I am thinking that the market could be in for another rout. I wonder if sitting in cash is the prudent thing to do and just wait out the current virus situation. The market has gone up allot and I would rather give up a small potential gain over time vs a large drop in a much shorter period of time. Your thoughts?

Q: Hi
Want to reduce the etf's I have, by doing the following, looking for growth outside of Canada.
IDV and PID into EFG
IVOL, QQQJ, XGI, SCHB & SCHD into IWO
VIU into IEMG
Your suggestions always welcome.
Thank you

Mike

Q: Good Morning 5i, What would be your allocation % to the 11Sectors? Thanks

Q: Are you followers of David Rosenburg? He is playing the contrarian and is foreshadowing gloomy times ahead - not too distant. Recently, in the National Post he reinforced his current analysis with his prior track record of seeing what others didn't. What do you think?

Q: I have quite a few companies that trading well above
There normal p/e
Like Medtronics ,I’m starting to think
Selling the lofty ones and sit in a little more cash
And wait for all this to normalize
The example I’m using, over 10 years is around
25 p/e and now trading at 58 p/e
That info comes from Rbc investing
What are your thoughts
Thanks

Q: Can you list a few companies you think are undervalued today?

Q: When the IPO settles down what portion of your portfolio would you allocate? I am okay with a a higher risk stock like COIN.
Clayton