Investment Q&A

Q: I bought these (and others) for growth, and was doing well, but am now in the red on these holdings. I bought for a five-year hold, so don’t need to sell anything, but I would ask, do you see any that should be sold or any that I could be adding to for a January bounce? Thanks!

Q: There was an article in the G&M today (Dec. 14th) that I found interesting. https://www.theglobeandmail.com/investing/article-if-stocks-crashed-what-portfolio-would-you-want/
It suggested that a portfolio of 25% each of gold, cash or equivalent, long bonds and equity would have returned 7% plus annually over the last 30 some years, with the worst year being 2013 when it would have declined only 0.5%. It goes on to suggest some ETF’s that could make up this “Permanent Portfolio”. In the current environment, and knowing that past performance won’t necessarily be repeated going forward, the strategy looks crazy to me. Not sure if you would have read the article or if the “Permanent Portfolio” is a generally known thing, but any thoughts?

Q: Hello 5i Research Team
Looking forward to next year 2022, what strategy would you recommend with the likelihood of higher interest rates.Which area of the market are going to perform better and going to be hit hard. An example of a few stocks that you may recommend that should perform well next year.
I would like to thank everyone on the 5i research team for great advice and wishing you and your family a Happy and blessed Holiday Season.

Q: In your opinion how much of the inflation/interest rate fear is already reflected in the market. What is the best advice to feel better about this shift if growth stocks are a good part of a portfolio.
Thank you for the hand holding that you all do.
Peter

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.