Investment Q&A

Q: Is rotation into other investments groups required or necessary in anticipated market correction or as long as the individual portfolio is within the required target one may ignore such event ?

Q: I just finished reading the psychology of money and am looking for more books to read in the financial sector that you recommend

Q: What is the impact of the proposed Trump Tariffs? Is this the reason for weakness in rails, oil and gas, and in general, the TSX lately? Happy holidays and thanks for all you do!

Q: Hi there, I’m curious to know what you look for in a true compounder. What are the key metrics that catch your eye when analyzing a company and how they make use of their cash.

Q: Hi Team,
Is it just me or why do I get the feeling this market is getting a bit “out of whack” in some areas . It looks to me like people are selling the solid winners such as Nvda , for names such as Tesla and Bitcoin. Am I the only one that thinks some of the moves made since Trump got in will end up painful when the hype fades and there’s no real meat to back the valuations ? It’s almost like the irrational excuberance phase has kicked in like it did at the end of 2021 before the tech sector crashed. Except this time only in certain high flying names.

Just looking for your take on things as they stand today. Stay the course ? Join the Tesla party and fly into the sun ? Or buy the laggards perhaps in undervalued areas (Gsy , or even add to nvda dip for example, or trim nvda if the justification is there …which I don’t think it is) . Hard question perhaps!

Thanks ,
Shane

Q: I am two years before retirement and have a moderate risk profile. My current allocation is 25% Canada, 70% US, 5% Developed, and 0% Developing. Considering the state of the economy in Canada and Trump's threats about tariffs, I am wondering whether it's a good idea to decrease my allocation for Canada to 20% and instead allocate 3% to VWO and 2% to ILF. What's your opinion on this? Where do you anticipate better returns—in Canada or in the emerging markets covered by VWO and ILF?

Q: How often do you think an average investor, long-term focused, should check prices of stocks in their portfolio?
What about for a long-term investor who also considers momentum in buy-sell decisions?
Thanks!

Q: What could President Trump do after January 20th that would cause a Stock Market Crash

Bob

Q: Indications of a .5 point reduction in interest rate on Wednesday. If materializes which sectors would be a positive. I am thinking of investing in dfn and enb. Your thoughts

Q: Not a question. I saw Rajiv's question today inquiring about "any statistical data on the Santa Claus rally."

(Hopefully this is an appropriate thing to share on here.) There's an account on twitter by Wayne Whaley (@WayneWhaley1136) and he regularly posts statistical data studies on the US markets. I don't have a twitter account, so I just take a look via a google search occasionally for fun. I do recall seeing him tweet Santa Claus rally specific statistical studies in the past, including last Christmas.

Q: What Companies or Financial Instruments to you suggest buying in preparing for the event of a Major correction ?... - I know long term planning/holding will average things out with certain holdings... But...

- I'm basically asking for your thoughts to protect a portfolio in the event of a Major correction, without having to wait 3-4 years for things to bounce or grow back...

- Please Suggest An Insurance Policy or Ideas ( Stocks or Investment Instruments) of sorts to invest in...Other than a diversified portfolio...

- I know Insurance costs money, But what do you feel are good investments for risk at this point to protect our money and investments?

Thanks,
M

Q: Hello 5i team,

I was wondering if you have any statistical data on S&P, Nasdaq performance for a week or two after the Santa rally? To confirm the Santa rally should end two days of trading in the new year?
Regards

Q: Hello Team, It seems to me from reading the odd comment that you are not very keen on buying the TSX hedged US securities in their Canadian listing and currency and prefer to buy the corresponding security on US exchanges in their original US listing and currency. Can you please explain the reason? Thank you.

Q: My question is on trimming winning stocks. You will often comment on this question that it is about the size of the stock in relation to your portfolio. I have a number of stocks that are half positions which are up 100-200% so now are almost full positions so I don't "need" to trim them. But I'm often tempted to trim at a new high to take some profits with the idea of re-buying on a pullback. I realize this is market timing so I hesitate, but I've also seen thousands of dollars disappear on a downturn. I have bought some stocks I think of as longer term trades so I have sold them after a profit and it has felt good to cement that profit so to speak. But some stocks like Apple, or BN that I see as more core holdings -with these type of stocks do I trim or just leave them, let them run and buy more on a pullback with new money presuming I have more. Any further articles on this would be appreciated as well. Thank you!

Q: The CAD continues to weaken against the USD. Interest rates are declining in the US so I’m not sure why the USD is so strong. Trump’s tariffs are thought to be inflationary so possibly the market is already anticipating higher interest rates. Typically I am fully invested. Trying to decide if I should sell a portion of my USD stocks like NVDA to raise some cash. I agree that the tariffs are coming in spite of what we Canadians do to secure our border. May I have your thoughts on the USD and the tariffs?
Thanks,
Jim

Q: Everyone, what is the one risk that you are spending the most time on right now? Clayton

Q: Is it time to take some profits from the market?

Q: I have a very novice question. When people say the market is "overvalued" or "high" how do we know that? Do we look at the P/E Ratio?

Can you provide a bit of insight on this? Thanks.

Q: I am thinking of moving all my equities into ETFs. Would now be a good time to do it, or should I wait until March or so?

I have no tax benefits from doing it now. I feel that the US general market may be a bit inflated right now due to the US election euphoria. I also feel there could be some tax loss selling with certain stocks (like BCE), due to time of year. This could result in my selling my stocks low, and buying the general market high.

Could you please comment on this?

Thanks.

Q: Hello 5i staff
I have a portfolio consisting in a few etf’s and a few stocks for the American side. One of these is a small cap etf. On the Canadian side it have mostly large blue chip stocks. CSU, BNT, etc. These are mostly at the full 5% quota. I keep some of these smaller stocks, I suppose because I enjoy winning. The problem, though, is that I hate losing. I keep the amount of these smaller stocks small because of that fear of losing, I suppose. They are often between one and two per cent of a fairly large portfolio, which is low percentage wise, but still quite high dollar wise. I am an advancing senior with moderate risk profile. Have a modest pension, which allows us mostly to live without touching investments. I have been wondering lately whether I should just bite the bullet, take the risk and add more to these fast growers ( and from time to time, fast losers) or whether I should just sell them all and consolidate in the larger stocks and etf’s. especially since I can say that I have won the game? Perhaps I could keep a few for fun. But, I guess that is what I am doing now. I know that you cannot give personal advice. But, I find that you usually have interesting things to say about these kinds of situations. As well, it has been cathartic and possibly helpful for me just to frame the question.
Thanks for all the help you offer us