Investment Q&A

Q: Inflation/recession fears are putting pressure on stocks. Rising interest rates, with even more increases to come, are putting pressure on bonds. Looking a few years out, what would be your stock/bond weighting today for a balanced portfolio with the hope of earning 4+% per year? And of your bond weighting, do you still prefer short vs long? Thanks.

Q: When the price of oil tanked, a few fund managers pounded the table. Now that tech is sputtering significantly, do you see multiples of today's prices in the next 18 months?
Specifically, Nvidia, Lightspeed, Topics, Shopify, Google, Facebook, Apple, Amazon, etc.
Is now the time or once the gut-wrenching war subsides or would you stay away?
Thanks.

Q: The Canadian energy sector is taking a hit today (Apr 21) despite oil prices being up. What's behind this? Is it falling in sympathy with general commodities (metals, agriculture), which are also plummeting today?

Q: How would you position your portfolio for an environment of deglobalization? With what has happened over the last few years, do you think the world is moving towards deglobalization?

TIA

Q: Wanting to add some large cap growth stocks to my large cap utility, bank, pipeline,infrastructure, portfolio as new money becomes available. Growth seems to be out of favour so am seeing this as a time to buy with a 2 year window.

You often advise waiting for a declining stock to show some strength, or at least to start building a base before stepping in. I find this difficult on 2 aspects. Technically, how do I determine when to buy a declining stock in this market ? Psychologically, I hold off on buying when the stock declines further, thinking the decline will continue, and if the stock moves upward I get get frustrated believing that I missed the boat . Do former “ favourites “ such as the 2 above lose their shine even when the markets recover ? Which of these would you purchase first ?
Thanks. Derek

Q: Hello Peter, Could you tell me which sectors are doing well in Canada and the USA and how long will they be in favor ie:- 3 months, 6 months 1 year etc.
Thanks.
Ivan

Q: Hi team,

Grateful if you could develop your answer to Chris April 19 and provide your full list of buy-and-forget stocks both in Canada and USA in order of preference and with suggested entry price.

With appreciation,

Jacques ISD

Q: during a recession, could you give me your opinion as to the sectors which are most defensive. some eg. would be appreciated thanks

Q: What is your outlook on the us-can $ exchange rate over the next 3 months

Q: Hello Peter
This is a predictive question.Do you think these 4 index , TSX . Dow Jones,S&P 500 and NASDAQ will be higher or lower the beginning of the year 2022 ? No rush to answer.
Pease deduct as many credit that you feel is appropriate.
Thanks

Q: In my RRSP I am 7% over weight in the Energy sector and 1.17& under weight in Utilities.

Thinking of selling some of my ENB and split it between BIP.UN and FTS., to get my energy sector reduced and utilities increased.

Your comments are always welcome.

Thank you

Mike

Q: Good Day to 5I team: With banks trending down I am down about 7% but still with a 4% dividend.With VRIF my core retirement income holding also in a downward trend am down about 5% with a 4% dividend. Would you consider one or the other a sell for tax loss and. Investing proceeds in a 1 year gic at 2.45% to take shelter from what may or may not transpire into a resession and redeploy funds when markets look better? Which do you feel has a better chance of revovery?

Q: over the past 5 years, I've noticed when QQQ takes a decent dip, it climbs hard after. Do you believe we have seen the worst of this dip? And if not, when would you feel comfortable entering?

Q: If the fear of higher interest rates was causing the share prices of tech companies to fall, why would share prices rise today (April 13) with the announcement of a 0.5% rate increase?
Puzzled...Steve

Q: Consensus is that a recession is coming, question is when. When the recession hits will that be a precursor to a bear market? If so will that be cyclical or secular?
You recently answered a question stating that recessions typically last less than a year. If so that would suggest it may be a precursor to a cyclical bear market but not a secular (multi year??) bear market.
Many pundits suggest we are in the late innings of a secular bull market, which started in 2009, I wonder whether this imminent recession would be the precursor to a pending secular bear market, thoughts?

Q: Hi 5iTeam,

I would like to find out how stock markets did in times of high interest and inflation rates. Would you please shed some lights as to how the US and Canadian stock markets did in late 1970s and early 1980s.

And indeed if there were significant pullbacks during these periods, how long then did it take for the markets to recover.

As always thanks for your invaluable service.

Best Regards,
H

Q: I recently read an article you published earlier this year which purports to show that if one misses just the best ten days in the market over 10 years their average returns will be half that of one who was in the market the whole time. While I may not be quoting the article exactly, I have read numerous articles over the years suggesting the same thing - that time in the market is key to higher returns and that only a few days can significantly impact long term returns. You have suggested the same thing when you speak of cash being a drag on returns and that investing all available cash at one time is better than investing portions over a pre-determined time frame.

On the other hand, you have often spoken of waiting to invest only in companies showing positive momentum or that one could buy partial positions over a predetermined time frame to ensure that there is some protection should that stock price continue to decline. However, both of these strategies seem at odds with the "stay invested for the best long term gains" noted above.

I suspect that staying invested at all times is the best strategy for long term growth and that the go slower strategy is more to help those whose risk tolerances don't allow for paper losses immediately after investing.

Would you agree with my conclusion? Can missing just a few days significantly impact overall gains? And finally. if this is true, how does one incorporate buying only into momentum-positive companies into this strategy?

Appreciate your insight.

Paul F.

Q: Hi, At times like these when positions at companies like Shop and Nvda are eroded..when does it make sense to add? Should one wait until the interest rate cycle is over and wait for the tides to turn? What indications should you look out for for growth stocks to rebound? Thanks. Shyam

Q: What do you think of this company?

Q: Hello

This question is mainly for Peter because of his long experience.

It is obvious that rates will rise significantly in 2022 and maybe 2023 due to high inflation. And at the same time it also seems very likely that there will be a recession in 12 to 18 months. My question is how can central banks react in such an environment? Will they start cutting rates when the recession is on the horizon or is it possible that they will leave them stable for a more or less extended period, even in a recession?

Thanks