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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: What sector of the TSX would you invest new money and why?
Read Answer Asked by Ronald on June 02, 2020
Q: Hi
Would it be a wise to replace the 4 mentioned above with ITOT in my RRSP.

Thank you Mike.
Read Answer Asked by Mike on June 02, 2020
Q: The Certified Financial Planners’ Guide (https://fpcanada.ca/docs/default-source/standards/2020-pag---english.pdf) provides long-term projected guidelines for Canadian, foreign-developed, and emerging markets (as well as for other assets). Unfortunately, it does not break out the long-term projected guidelines by country, and it lumps the US market with "other foreign-developed markets".

For example, I expect that the long-term growth rates will differ between the US, Japan, EU and UK. Similarly, the growth rates in emerging markets will vary tremendously by country (e.g. China versus Ukraine).

I am looking for more detailed projections to assist in my financial planning. Are you aware of a credible source which provides long-term projected financial guidelines by country, or as a minimum by region?

Also, the Certified Financial Planners' Guide forecasts Canada to have the lowest projected equity returns of the geographic regions. I would like to better understand whether this is a broad-based concensus.

Thank you for this wonderful service.



Read Answer Asked by Dale on May 28, 2020
Q: I own a fair number of the stocks in your portfolios. Given that there may be an upcoming rotation from the hot Tech sector into more value oriented stocks, what are some beaten up value names in your portfolios that you would be comfortable holding a 3% position in? I am still 30% cash and I am trying to wait until second quarter carnage is in and then buy value names. What are your thoughts on this?
Thank You for your support in these times.
Clarence
Read Answer Asked by Clarence on May 28, 2020
Q: Hello,
Read your article about the economy is not the market and vice versa, you said “just remember that 46% of companies in the Russell 2000 and 35% on the TSX are down over 30% this year”. I was wondering if you had any insight into the real bargains of those stocks that are down in those two indices. Thanks, Rick
Read Answer Asked by Rick on May 28, 2020
Q: It looks like there's some mean reversion going on today with some of the tech names that saw big spikes of the last few months. Any names you'd pick up today, or would you wait to see how this shakes out over the next little while?
Read Answer Asked by Rick on May 27, 2020
Q: With the strong positive response to the financial stocks , do you see a possible shift away from tech stocks ie SHOP, KXS, CSU etc. to this sector.
Read Answer Asked by Ric on May 27, 2020
Q: My outlook on the market is that there is a lot more downside risk than upside potential. I am thinking to use bull and bear ETF's to reduce market risk in a pair trade of sorts. For example, go long NASDAQ (QQQ) and short S&P (SH). The other one I'm thinking about is long investment grade (LQD) and short high yield (SJB). What do you think of the strategy generally? Secondly, what is your opinion on my choices?
Read Answer Asked by ROB on May 22, 2020
Q: Would you deploy a large amount of cash in the market today if safety of principal was your primary concern...and if so, in what? Are US dollar based investments safer than Canadian or international. Thanks.
Read Answer Asked by Curtis on May 22, 2020
Q: I am young investor building my first portfolio during these tough times. Having not been through a financial crisis before I am struggling to know how to proceed. Are you still in the camp that the markets are overvalued right now and need to chill? I keep waiting for pull backs but things keep going up (S&P approaching 3000). Do you think a pull back will come?

Related to the above, in your May 5th update you said "in our view, slow buying at good prices continues to be a solid strategy and we think 2020 prices will look attractive in two to three years from now". Looking at some of your favorite US names in recent Q&A (AYX, TEAM, DOCU, etc) they are at highs. How does one determine "good prices" in these situations (e.g., one day pull backs? overall % reduction? buy into momentum and remain optimistic?)?

Thanks for the fantastic service and for educating young investors like myself.
Read Answer Asked by Justin on May 21, 2020
Q: Befuddled - that's me. Got a list of stocks I would like to add too or establish new positions in, both in Canada and US.
But do I do it now or just continue to hold off?
After the major market bottom, I thought there would be a technical correct......never happened
Then there was the FOMO...and I took a pass on making stock position buys.
Now, the markets are still moving up, and up.
Now what do I do?....like stay put and wait until after the second quarter results as the there is no end to the covid-19, just changes in phases, at least so far.
What is 5iR's suggested tactic, aka approach???
.........Keen to e-read your take.......Tom
Read Answer Asked by Tom on May 21, 2020
Q: I am starting a new portfolio, totally separate from my existing ones due to different ownership and would likely sell after 3 years. What sectors do you think will have the most positive movement in the next three years?
Read Answer Asked by stephen on May 20, 2020
Q: With an outlook that there is substantially more downside risk than upside potential in the markets, does it make sense to set up some pairs trades to reduce market risk. I don't short stocks, so I was thinking to use bull and bear ETF's. I had in mind (1) long NASDAQ (QQQ) / short Russell (RWM) and (2) long Investment Grade Bonds (LQD) / short High Yield (SJB). First of all, what do you think of the strategy and second, do my selections seems reasonable? Thanks for your valued advice.
Read Answer Asked by ROB on May 20, 2020
Q: Hi, Covid19, China vs USA trade, Upcoming USA Elections, etc. How do you see the markets behaving to the end of 2020, should We be alert and think about selling/parking some cash for next year?
Thanks 5i.
Read Answer Asked by Fernando on May 14, 2020
Q: What do you think is the probability the Bank of Canada will resort to a negative interest rate, and if so, what would be the best investment strategy? What ratio of cash, bonds, gold, silver, and stocks? Thank you. Bob
Read Answer Asked by Bob on May 14, 2020
Q: Good morning with the increased sabre rattling from the Trump administration against China my mind goes to what if we end up in a trade standoff. Just looking at North American stock sectors which will be effected the most and which offer the best protection if the dog pooh should hit the trade fan?
Thanks David
Read Answer Asked by David on May 13, 2020
Q: Hello,with all the recent debt taken on by governments all over the world,this has kind of brought gold into the spotlight as a possible “safe haven” do you think Paul Tudor Jones strong endorsement of bitcoin would be a competitor for investment dollars in that space or am just misreading this
Also do you think with this tremendous amount of government and consumer debt load,do you think gold could be a good investment going forward for at least a possible 1-3 years and maybe even much longer depending on when balance sheets of governments start to look better thanks
Read Answer Asked by Greg on May 13, 2020
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