Investment Q&A

Q: Current market volatility has me seeking companies that have 'wide moats' making them somewhat less susceptible to market noise. I would appreciate it if you would suggest the names of some American companies that you would consider to be 'wide moat' types of companies. If there are some that currently provide value this would be a bonus.

Q: Hi 5i,

You have mentioned that "Anything 'growthy' and on the smaller side has been unloved for the last one to two months." So the Hi Tech stock seem to be the worst sector now. Do you think the tech sector is over? How many months or years will the tech stocks come back by your experiences. I have no income, but can still survive for 2 years.

Q: In hindsight (which, as we know, is 20/20), I was overweight in tech and underweight in both materials (0%) and consumer cyclicals (4%). Given rising fears of inflation, I am of two minds.

A. Hold the course. Although four of my tech stocks are well below water - ARKK, KXS, U,and XBC - they are fundamentally in good shape and will rebound in time. And I've missed most of the upswing in materials and CC anyway.

B. Inflation is inevitable. I should sell off one or more of my tech losers (so I am no longer overweight in that sector), take the proceeds and invest in either materials or consumer cyclical to enable my portfolio to better cope with inflation.

If Scenario B is, in your view, the best to pursue:
1. Which tech(s) - and in what order - would you be inclined to sell?
2. If only one could be added to, would it be materials or CC?
3. What are your two favourite US consumer cyclicals today?
4. What are your two favourite US or Canadian materials today?

Many thanks for your guidance.

Maureen

Q: I am wondering if from a diversification standpoint, do you look at each investment account separately, or on a combined basis. For instance, is a full position 2.5% in each of 2 accounts, or 5% in one account? Do you hold different securities in both accounts if its a good investment, or do you keep your holdings between both accounts at say that of a full position. Would you not advise to have more than 5%, full position, between both accounts or would you be ok with 5% in each but this would then represent 10% of your total portfolio?

Q: Where is all the money going? My portfolio is down 9% from Feb high and a look this morning at the sector performance shows utilities as the only Cdn sector in the green, slightly. US market showing same. Is substantial money moving out of N American markets, moving into bonds or other investment types? What's going on?
Thanks guys.

Q: Hello,

A long time ago, Peter was on Market call and he mentioned a few criteria, which in his books, would make a stock a recommendation.
And then as one of the top picks, which met all those criteria, was STN.
Out of all those criteria, I remember:
1) a company had no dividend and just introduced one;
2) significant insider holding/buying.
3) no debt.

Could you please let me know if the criteria I listed above is correct + if there were other criteria as well?
Also, could you please recommend a few companies in both Canada and in US, which met all those criteria (relatively) recently?
It would be really appreciated companies from different industries/sectors please.

Thank you

Q: Do you think the federal budget (and any nasty surprises in it) could have a significant impact on the Canadian stock market? Do you think any sectors could get hurt, or benefit, more than others?

Q: Hello Team,

Can you plese list your top 6 'recovery' stocks that should still show significant positive movement.

Thanks,

Dean

Q: Hi,
Maybe not the forum, where I need to ask about this.

Salaries/income has stayed flat over the past couple of years....the real estate prices have increased SUBSTANTIALY.

How long can this party last? The disconnect between income and house prices is just growing and growing.....infinitum .

Here is my Question.
How long can the near zero rates continue ? If this monetary policy is making the real estate sector and the stock market boom, then should the Govt not continue this zero interest rate policy FOR EVER ? I am not good at finance/economics, could you please explain, why would any Govt. ever increase rates, if low rates generate growth ?

Q: I have similar weightings of MDB, DOCU, PAYC, CRWD, GH, NET, and TWLO in my US RRSP account. As per the recent report recommendation from 5i, I would like to rotate some of my lesser quality stocks into strong value stocks or ETFs. Can you suggest 2 of 3 of the above that you would recommend I reduce or sell out and what strong value plays would make sense to backfill them with? Am I interpreting the guidance of the report correctly? Thanks!!

Q: Retired, dividend-income investor. A question earlier today has motivated me to finally ask this question....been thinking of it for quite a while. It had to do with potential rising interest rates and your response was that dividend investors should be prepared for a bumpy ride in the short term (my paraphrase of your answer).

I own the above securities and for the most part trim-add around core positions that I hold for the long term. Is it possible to divide the above securities into two camps....one that would be "ok" in a rising interest rate environment and the other that I should consider trimming a bit or maybe selling? I am ok riding things out for the long term and do not normally react to short term volatility.

Thanks for your help....Steve

Q: Hi, I am looking to put some US funds into companies/sectors, which will benefit from the reopening of economy. I also read that small caps generally outperform when economy rebounds. Could you recommend some USD ETf's and few large cap US stocks, still trading below their pre pandemic levels in such sectors, in order of preference. Thank You

Q: With rising bond yields, what is the best strategy in this environnement, what are the sectors who benefits from this thx

Q: How much would interest rates have to increase before it would effect dividend stocks? And what percentage decrease would you expect to see in dividend stocks?
Thanks
Brian

Q: How would you expect the healthcare sector to perform in inflationary times?

Q: During recent research, I discovered a theory that even in our times of extreme volatility I should seek out companies that exhibit the following characteristics:
1. They have a history of growing dividends for investors.
2. They have a history of growing their earnings.
3. They trade at valuations that make sense.
So, based on these variables, and your years of experience, please provide me with the names of several Canadian companies that have these characteristics.

Q: Hey guys,

I have $18,000 in an RRSP and I am looking to split up my Money into Canadian Currency ETF's. I am thinking of an S&P 500, TSX 60, Emerging Markets and European ETF's.
What are your recommendations and allocation % for each. Timeline is 25-30 years.

Thanks a bunch

Q: Hi there, would you now give the green light to start purchasing oil stocks? The stars sure seem to be aligned here! For a trade or investment? Short or medium term? Economies are going to start opening up, planes are going to start flying, and old economy cars are going take to the roads again, in droves!!
Also, lets not forget about all those newly purchased RV's hitting the highways again for the summer driving season...

Or, would you be selling into this strength as a contrarian move to whats happening in the market with oil stocks these days?
Thanks!

Q: Hello 5i team,
Before a change in a weather system strong winds pick up with extremes of air pressure close together, then a calm before the storm hits. Over the years it was a big deal to see a holding jump 50 cents either way. NOW, we see the likes of not only growth stocks such as GWG and LSPD moving $5 and $6 at day but also ETF's such as IWO and VGT. Some "staid" stocks such as MSFT also move a chunck at a time. Are these moves indicative of a major change coming or is it smart money rotating or dumb money jumping on the bandwagon? Or is it anybody's guess? Should I be worried but stick to the plan?
Stanley

Q: AS Oil stocks were much beatonup and now recovering very well,Which other sector is in similar position.Being A Realtor I think Commecial reits,office and retail US AND
Canadian are but Need your Opinion and advice.