Investment Q&A

Q: Hi Team! I'm wondering what might move this market to a better place where there is some momentum for stocks. It seems that all indicators seem to point to a slowdown or downturn for stock markets. While valuations are more realistic, long term interest rates haven't moved up that much indicating that the economy might not have longer term strength, the market has been good for some time, the benefits from US tax cuts have been digested, stronger earnings seem to have petered out a bit and so in all of this as a layman I'm looking at whether I should be more defensive and perhaps move some funds to cash before things get ugly. Is the recent volatility perhaps not a warning sign that markets are bracing for a tougher session ahead. Your thoughts?

Q: Do you know the P/E ratio on EPS estimates for 2018 & 2019 for the:
- S&P500
- TSX

Thanks!

Q: Just my 2 cents..having been with 5i for 4 and a half years I gave learned to trust your opinions and then do my own due diligence. These are difficult weeks and the market is fearful. But it is still here after many many years and decades of ups and downs. When we stand back and look at the charts....we are up over the years. This is an opportunity to slowly dip into some of our favourite holdings. The world and hence the market has always had problems and always will. To those who doubt 5i opinions...stay the course...and do your own research as well. I'm glad I have.
Post at your discretion.

Q: Here is a list of some of my holdings. Most of them are frightening. TOY, GSY, PHO, COV, TSGI and KXS which I just increased to a full position the other day.
RHT, CXR and SINO FOREST. I have seen them go from dollars to pennies and out of these I am very concerned that TSGI -- one morning I will wake up and it will be pennies and when I go to 5i you will be telling us that you will be removing it from the portfolio and selling it. If it will take years for these to recover, should we not put our money somewhere else until that time comes?
Thanks Dennis

Q: Dear 5i
If you had 6 months before you were planning on retiring and considering the volatility in the markets, what percentage of fixed income vs equity would you have in place in your portfolio ?
Thanks
Bill C

Q: It seems like a lot of companies are getting decimated on slower growth and future lower guidance - and in some cases even good results are also getting decimated. This does not seem to be happening in isolation and feels like a broad sentiment. Is this the sign of a weakening market? Does this typically indicate something occurring in the near future?

Q: In your opinion, what segments of the US market could be most affected both positive and negative by the election results?

Q: Hello,

Now that markets have certainty and are digesting the US mid-term election results, what sectors do you believe will benefit? Im looking for a few opportunistic US ETF investments to take advantage of areas that got beat up in (Red) October and are most likely to recover/outperform.

Thanks,

Kuldar

Q: Hi,

What is your recommendation in terms of no of stocks should be held between US and CDN markets among all the sectors. For Canadian stocks I am focusing on about 22 stocks from the BE, INC and GRO Portfolios with heavy focus on FInancials, Energy, Utilities, Materials and also other sectors. For US stocks I am targeting for 20 - 25 stocks in Industrials, Healthcare,Tech,Con cyclical and Staples primarily large blue chips in growth and dividend income.

Appreciate your guidance as always.

Thanks
Ninad

Q: Morning...what stocks (list of 5)would likely see a good bump over the next quarter with trade issues calming down with China...

Thanks
Matt

Q: 12 years of Tse pain
On Oct 31/07 the Tse closed at 14,625, Cnd dollar was at par to U.S and Wti was $94.51 Dow Jones was 13,930 and 10 yr treasuries were 4.47%
I realize that Tse was strong in resources and weak in Tech ,however there must have been a huge flow of funds to foreign markets
In 2007 was there a restriction on foreign content in RRSPs and did Etfs exist at that time?
Do you think that Tse will soon have its place in the sun as U.S. investors can now buy at a 30% discount?
Is Dec 27 the last day for tax loss selling?
Thank you

Q: This is a market question. Yesterday, markets were up nicely until news of more US tariffs on China came out, then they plunged. But they plunged deeper in Canada than in the US. Would you have a try at explaining why that would be given our valuations are cheaper and US tariffs on China would have no impact on us? It seems every time US markets drop due to China tariff concerns ours go down more. Are we in a bear market in Canada? Morgan Stanley has said the US is now in a bear market and all rallies should be sold because it's going to get worse. Would you advise that here?

Q: I, like everyone else has been getting hit with the recent market volatility. 5% loss to my balanced portfolio. What would you say to someone who only has 3-5 years until retirement. I have been leaning towards growth but perhaps should I look for more income stocks with the downturn in order to transition into income 3-5 years.

Thanks

Q: As a result of the recent decline in the North American equity markets I would appreciate you advise the current % weighting of the various sectors of the TSE, S &P 500 and Your recommended % weighting of those sectors.
In regards to your recommended weighting of the energy sector what portion would you suggest should be in the energy producers and what portion in the energy infrastructure companies i.e Enb, Key, PPL
Thank you

Q: Hi could you please explain why you think healthcare may be a good place to hide if markets stay week? And does this include biotech without revenue or are you referring top the larger drug companies with stable revenue?

Q: It appears to me that major components of our economy are slowing. Specifically, vehicle sales, home starts and home sales all seem to have stalled or are stalling. Considering the outsized contributions these make to our economy, when coupled with a US - China trade war and increasing interest rates, why would one not sit on the sidelines during this market correction and/or go more into cash?

For example, people often complain about the effect of the price of oil on the economy, but the reality is that fuel and electrical production are ~ 10% of Canada's GDP whereas real estate, construction and related financials make up ~20% and automotive exports are the # 1 or 2 export from Canada.

I can't help but think that things are going to get worse before they get better...

Cam.

Q: I know this isn't an exact science, but can you list what Canadian sectors you think will be the hardest hit by tax-loss selling? Is it a good idea to wait until early December to pick up some companies in these sectors?
thanks,
Paul

Q: This is ugly. I asked you on several times about selling my Financials in both Canada and US (was up 40% on average)) you advised against this? (In hindsight your advise wasquestionable - Question I have now is should I sell some higher risk stocks in different sectors and load up even more on Canadian +American banks . I know you cannot be right all the time but this turned out to be a major miss for me. I still cautiously valve your opinion. Thanks

Q: After a correction like we’ve seen the last week, where do you see as the best place to put money? I didn’t sell anything during the pullback. I have a long time to wait, and am ok with risk. Would you recommend long term value stocks (such as dividend aristocrats, banks, utilities etc.) or more fluctuating stocks (such as tech, pot, faang etc)? Where do you see the better bounce back? I use all available drips.

Q: According to Bank of America while individual investors are still buying stocks, institutional investors are selling. Is that a bearish sign ? Typically professionals exit the market before a major downturn and retail investors as always late in the game throw their money into the market at a wrong time. What are you thoughts on this?
I have recently bought SIS, PBH and other 5i BE stocks. I had placed some stink bids with my buy price atleast 10% below the price about a month ago and all those transactions went through to my surprise. The stocks are still falling further. I know for long term investment one should not worry about 10-20% fall in good companies but are institutions selling the companies followed by 5i portfolios and may be they are waiting to come back in at a much better pricing in near future ?

Thanks for the great service as always
Ninad