Investment Q&A

Q: In your reply to Steve this morning, you said "We think it is important to watch, but there are other indicators that we are watching more closely such as credit spreads or commodity prices." Could you please expand on this? Thanks in advance.

Q: By my own count the TSX is up 12.45% as of last Friday 9/13. My own portfolio is lagging far behind at about upping 1.5%.

Just wonder which sectors are the key drivers that push the TSX up to that about 12.5% level? Also, what are the key mover names in those sectors?

Thanks.

Q: some financial advisors worry about the yield curve predicting difficult economic times to come sometime in the next year or two. Does this play a factor in your market models? Does it suggest caution? I would assume actual company results, earnings growth etc remain primary, but how does one incorporate this type of info without drowning in endless market noise?

Q: US Debt. How long before it sets off a crisis in the stock and bond markets. Is there declining interest in buying American treasuries today? And do you think there is a real risk to the dollar being replaced as the world standard. US politics and media are oblivious to this looming issue, or do you believe this is just paranoia.

Q: Hi group what's you top pick in each of the 6 main sectors regardless of US.Canada also what's a good entry point after the latest market turbulence / most potential for recovery and value appreciation with low to moderate risk. going fwd ...Thanks

Q: Where do you see the price of Bitcoin going in the next year? I am looking to sell within that time frame as I need the money to pay off debts.

Q: Hello, 5i - Can you please give your opinion on the effect graphene will have on steel companies. Thank you.

Q: Sold 1/2 my portfolio (except CSU, TOI, LMN) at the end of August. First week into Sept and I'm looking smart. While I think it's still too early, when and how do I get back into market? Holdings (some sold out in August) include AMZN, META, NVDA, AMD, VRT, BN, SHOP, AXON, SNPS, NOVT, GOOG, NU, ELF.

Q: Hi again,

I just want to confirm that my investment strategy aligns with our prior discussions (Questions on this forum) and see if you have any recommendations for improvement. Here’s the plan I’m considering:

1. FHSA: I’ll be investing in the VFV ETF over the next 8-10 years, aiming for solid growth with moderate volatility, to support my goal of purchasing a home within that time frame.
2. TFSA: I plan to fractionally invest in your growth portfolio over the next 45 years. I’ll be contributing bi-weekly to both my FHSA and TFSA until they are both maxed out, reviewing and adjusting the portfolio as necessary every month based on the portfolio reports.
3. Bitcoin: I intend to allocate 15-20% of my overall portfolio to Bitcoin (in self-custody). Currently, Bitcoin makes up 8%, and I’ll continue to average into it alongside my other investments until I reach my target allocation.

At this stage, my portfolio would consist of approximately 66% in VFV, 25% in the growth portfolio, and 8% in Bitcoin. Moving forward, I plan to:
- Max out my FHSA (VFV) contributions each year.
- Match or exceed those contributions in my TFSA (growth portfolio). Ideally, over time, the growth portfolio would come to make up the majority of my overall portfolio.
- Gradually increase my Bitcoin allocation to reach my target of 15%, then maintain that percentage.

Does this strategy look solid to you, and would you suggest any adjustments before I move forward?

Thank you for all of your help!

Q: Hi Peter, I am 60 years old. What is your opinion on the 100 year minus my age rule to determine the percentage that should be in equities? In other words should I invest 40% in an equity portfolio and put the rest into a ladder GIC or similar. I have a good risk tolerance. Thanks for your time.

Q: Hi. I watch various Youtube videos on investing, usually hosted by different people. I often notice that these individuals present various graphs showing change in EPS over many years or change in cash flow or change in revenue or change in <etc>… Do you know of different graphing tools that may be providing this data? Most graphing tools I see usually show change in stock price, dividends, volume, … The ability to see all the different fundamental data over time looks enticing. Thanks.

Q: What is your view on this article especially of the author's suggestion to reduce exposure to growth stocks in favour of value stocks and high quality bonds? https://epaper.calgaryherald.com/article/281947433202611

Q: Today, I heard Mike Philbrick on Market Call, and one of his top picks was a USA managed futures etf: DBMF (I couldn't see it in your co drop down above). Also, recently I heard on Animal Spirits a podcast on managed futures as well, etf: KMLM, by Krane Shares. I’m interested in knowing what 5i thinks about Managed Futures? It seems it might be a good diversifier for one’s portfolio. Do these etf’s have decays when their futures contracts get rolled over? What are the negatives of these etf’s? Which one would you prefer and why? Or is there another one you like better? Or is it simply better to raise some cash when we think markets get over valued?

Q: I am planning to sell a portion of my portfolio either now or in mid-September. I know September often tends to be a down month for the market. But this September, there will almost certainly be rate cuts in the US...and possibly in Canada, as well. If you were me, would you wait until September to sell...or would you be more inclined to sell now?

Q: You've stated that "We do not think conditions are in place for giant problems, and would be fine staying mostly fully invested."

Historically, every time we have an inverted yield curve paired with a flattening fed funds rate, the market has suffered steep declines when the fed cuts and the yield curve normalizes.

Given that these conditions are currently in place, why do you think a more cautious approach is not warranted?

Q: What 5 market industry sectors do you recommend for investing in now, ranked in descending order, in the USA, for ETFs that will yield 10% per year including both dividends and capital appreciation please? Same question for ETFs in Canada please?

Q: With the S&P's current P/E ratio at 27.93 far above the five-year average is it safe assume some profit taking might occur in the next few weeks? If capital gains aren't an issue, would it be wise to look at taking a portion of profits off the table post NVDIA earnings on companies with a high P/E?

Q: Fully agree with your comment on Downside Risk Exposure. So important to understand and track!!! The problem for me is finding a free fee site to get this data or info. Would calculate it myself but it is difficult to do. With that in mind, I track the changes in the 52 week high and low and also the % change, just as an indicator. But you know of a web site that is free of fees to track the downside risk exposure of stocks???.....Tom

Q: Everyone, there has been many questions asked and answered. What question has not been asked that you wish was? Clayton

Q: When members ask questions regarding buying a stock, often a distinction is made between starting a position or adding to a position. eg. would add to an existing position but not start a position.
What is the distinction between these two ideas?
Mike