Investment Q&A

Q: There has been talk recently about averaging down. Awhile back 5i seemed to like AT and EGLX, and my price on it was in the $12.00 range. Since they were favourable about people having this, I averaged down at the time it was $7 and change, it is now down over the past 5 days 16.9%. What I have read lately with 5i, it seems now I should not have averaged down. I am happy I didn't with AT down 9.4% in the past 5 days. Once a stock goes sour - rule of thumb it usually stays sour? On another note, PINS was having a nice recovery, but over the last 5 days it is down 10.2% - I averaged down on that one 4 or 5 months ago. In the future, I don't think I will be averaging down.
Your thoughts are always appreciated.

Q: Hi Everyone! Me again. I have been listening to some financial podcasts and the discussion came around to a liquidity crisis which these folks are predicting may happen in the fall. Now taking this all with a grain of salt, what , in a nutshell , is a liquidity crisis and under what circumstances could this becoming our way??? Cheers again, Tamara

Q: When financial aids due to pandemic shut down measures end do you expect market downdraft? In Canada the CERB will end on Sept 25, 2021. Not sure when the U.S. financial aids will end though.

Q: Due to the global rubber shortage, I'm thinking it might be a decent time to enter this segment. I'd appreciate your opinion on this, and also your suggestion on which of these three companies you would suggest the most. Thanks.

Q: With regard to any ETF, do you prefer CAD hedged or not?

Q: This is more of a "HOW TO" type question. There are 2 strategies that I've been thinking may help me react to the next down event like Covid 19, 2023. One is to sell everything early and buy back in once the markets level out. The other is to just buy dividend paying stock and get paid while waiting for the inevitable return of the market.

So, if I adopt strategy 1, how would I actually go about it? It seems obvious there would be more sellers than buyers so would you simply sell at Market and hope you recoup enough $ to rebuild your portfolio, or would you use Limit (ie you feel the market will fall 20%, so set a low limit where you feel below it maybe to damaging or to low $$ with which to rebuild, but low enough where you may get more buyers than sellers using Market.

In strategy 2, the assumption would be No Economy could ever go to zero, there is always some companies who make it through black swan events. So how would I identify those dividend payers who could maintain their dividends or a portion of their dividend in dire market conditions?

Q: I have heard that one of the things that is a strong indicator a stock will outperform the market is the initiation of a dividend for the 1st time. I believe it may have been Peter who mentioned this on MarketCall. Parex announced Wednesday evening that they are initiating a dividend for the 1st time. I'm wondering what degree of outperformance you typically see from a company that begins paying a dividend, and how long does that outperformance typically last.

Q: Good morning
Would you have the sector performances percentages of the different sectors of the tsx to the end of june 2021
Cant seems to find them on the internet
Thks
Marcel

Q: Over the next 5 to 10 years, which index do you expect to perform better? The S&P500 or the NASDAQ100 and what would be your reasoning? Thanks in advance.

Q: Back to School in the Fall in USA & Canada

Who will benefit the most like Companies and Clothing Styles that will attract the Youth of all ages

RAK.

Q: The fixed income portion of our portfolio includes XBB@15% and ZIC at 6%. Portfolio analytics is suggesting fixed income assets @40%. I am not keen on adding more bonds and would be comfortable at 30% in FI. Can you suggest 1-2 alternatives for someone entering retirement?

Q: Very comfortably retired with secure indexed income streams.

What would you suggest as the "right" SECTOR ASSET ALLOCATION for long term estate growth?

Q: I've recently transferred approx. 10% of my RRSP to US$ currency. This portion of my funds will be invested in the US market. I believe that in the medium-term, the Canadian dollar will go down again against the US dollar to the mid 70 cent range as it has in the past. When that occurs, I was planning on selling my holdings, transferring the money back into Cnd. funds and possibly just repurchasing US holdings. I know it's after the fact, but was this a good idea or am I just overcomplicating my portfolio for little gain? My retirement horizon is over 10 years away.

Q: Hi Team,
Do you recommend having higher cash position at this time or near future?
Thanks!

Q: Thank you for providing such an unparalleled service. Your cost increases are minimal.

My question is about diversification in my RRSP which consists of mostly high quality growth stocks (GOOGL, VISA, NIKE, ACN, NVIDIA, etc.) I am however, under-represented in Canadian stocks which include BAM, SHOPIFY, IFC, FSV, & BIP.UN. My goal is to build up my Canadian portfolio in this RSP.

I am well represented in Tech, Consumers, disc, & health care with my US holdings. Can you recommend 10 Canadian stocks that I could add for the long term to balance out my portfolio? I am deficient in financial, materials & industrials. Or to apply the Occam's razor, should I just buy and accumulate XIC over time.

Many thanks

Q: My question relates to the 10 yr less 2 yr government bond spread as an indicator of a recession. Has it ever happen that Canada has had a recession without one in the US, or vice versa. The reason I am asking is because is it better to worry about the US 10-2yr spread or the Canadian 10-2yr as an indicator of a recession. Tnx

Q: According to yesterday's Globe, this Friday will see a frenzy of trading especially in the last fifteen minutes of the day due to the annual rebalancing of the Russell indicies. My first instinct is to avoid trading on the day as it may be frustrating. For a buy and hold type of investor are there any opportunities to look for, possibly next week, as securities are added and removed from funds? Are there any stocks you cover that will be affected? Thank you.

Q: Hello 5i Research
The US index has out performed the TSX index the last decade.
Do you think that the next decade
the Canadian market will out perform the US market ? What are your thoughts/ guess?
Thanks

Q: Are we starting to see another sector rotation particularly back into tech? What do you see as the best sectors to put money to work in right now?

Thanks!

Q: I realize that things are a little crazy throughout the world but can you see any particular reason that advisors of my friends ( 65 yrs plus ) are moving there portfolios into very defensive positions other than the good run in the last 14 months? Is there anything that I am not seeing as opposed to them? Thanks, James