Investment Q&A

Q: Given the drop in interest rates, I would appreciate 5i's view on Rate Reset Preferred Shares. I am a senior with a 60/40 portfolio of fixed income to equities and a focus on quality names, income and moderate growth in capital. What would 5i think of my selling a bond, taking advantage of recent price rises, and putting the proceeds in a Rate Reset Pref share (or ETF) for a longer term hold. Would 5i please suggest one or two names to consider.
Thank you.
Edward

Q: What would you look for in timing a buy? The vix at over 80? In particular I am interested in adding to my position in Verisk Analytics but this could apply to any stock.

Q: Any interesting happening in the markets the last little while? The price drop has been swift, but given where the S&P was in December 2018 (2416), there still seems to be some room on the downside. Is this a good level to start buying at? Different issues were affecting the market in each instance, but it still seems early to be a buyer right now.

Jason

Q: I am trying to understand how a payroll tax cut rumour can spark a potential bounce in the market and if a big bounce (should it happen) is just an artificial bounce or something to take seriously? To me it would seem that coronavirus is only just beginning to be felt in North America and that rate cuts and tax cuts can't change the impact of fear and potential shut downs. My question is do you think the market has fully priced in the impact of coronavirus on the economy or has it just reacted to the headlines with another probable leg down when earnings are dented?

Q: The only thing that didnt go down with the rest of market was an asset class called Pensions. I believe the assets behind all pensions when south including the deterioration of the credit quality of the bonds held within .Is it possible that pension holders may feel the same pain as other asset holders?

Q: For investors with high level of cash and based on current information available, how would you deploy capital going forward?

If we experience another big drop in the coming days, would you advise waiting for more stability. I did buy stocks today but remembered that I bought in too early in the last downturn.

Thank you for the special report today. Much appreciated.

Q: Hi, I have a bunch of cash looking to deploy in this carnage. I'm a bit underweight in international and emerging markets, however I'm a bit worried about putting new money into these markets compared to the US market when markets do bounce back. How would you recommend I deploy new $ into international, emerging markets, and US/CAD markets over the next few months?

Q: Looking to buy this morning. What do you think would be the least risky of sectors? Banks and telecoms look good to me.

Q: Peter; Would you consider this “ capitulation “?
Thanks

Rod

Q: What is your general "gut" feeling about this meltdown? If the Dow does not breech 25,000, does that indicate a bottom forming or do you see a prolonged period of share price damage?
No one doubts the seriousness of the virus, I wish they would call it the "new flu" as the present name sounds so ominous, but compared to the 20,000 plus who have died this season from the flu, it seems the media reporting "each case" is causing some serious panic both in life in general and in the markets. What is your overall assessment of the present conditions and can you take a stab at how long you think this will be so dominant in the news cycle. I guess when it's the second or third top story, it will be time to buy a lot!
Thanks.

Q: With the major down swings/upswings this last week or so, what type of investor are you seeing most active in the marketplace (and are we able to see this info publicly). Are these "mainly" the big institutional players unloading positions or loading up causing huge swings or is it the retail investor...or both
Also, are you seeing the majors starting to step in with more conviction on the dips?

Q: I was averaging in the market just before the correction and only deployed 35 % of the cash I had. Thanks to your advice in the past on that i was disciplined ( despite my emotions fighting the plan for months) . I feel like we have a great opportunity now.
Is it an average in - say 3- 5 % a week or see how it goes to catch an upward trend to and keep the gunpowder dry for now.
ps - II know you don't have crystal ball -just looking for a smart plan to execute - to keep my emotional investor guy under control

Q: Something that would be of enormous help to members currently buying stocks on dip (as opposed to ETF(s)) is a write-up that identifies companies (other than energy companies) that have balance sheets in a state where much lower sales for over a year could mean bankrupcies or share dilutions. I'm looking at forestry stocks, for example, and question what will happen if their sales go down 50%. Will they be able to pay their debts if this goes on 12-18 months? Even A&W, which appears on the surface to be a safe and boring income stock. What if sales go down 50% for a year, could franchise be under enough pressure to be forced to walk away? Buying a franchise is very expensive, afterall. I realize this could take time to write something like this, but no-one in the news is talking about the fact that some companies that need a minimum of sales before running in trouble with debt. Would appreciate your thoughts if you think this thesis is without merit. Thank you team!

Q: Nazim asked a question today that has been on my mind, "why hold stocks?" To follow up on your answer in which you opined that much of the downside may already have factored into prices, how can that be? The market is only down to levels it was at in the fall/summer. I am a long term investor but I moved to cash last week because of the risks. In weighing the potential downside risks (which could be huge) vs short term upside, why stay in the market? I just don't see how the effects of this virus will not be a lot worse than what has already been accounted for in the market. People are not going out, travelling, etc. and this must have a huge effect on the market going forward. Is this not a recipe for a recession? In which case, why not get out of the kitchen?

Q: how did low interest rates in japan affect there pension funds . did any get cut.or did employees have to pay more. thanks brian

Q: hi Ryan,
today market is 900points down again. at this stage which five stocks in US you prefer to jump in without any sector taking in consideration?
which sector you like the most?
Thank you,
KT

Q: Gey Guys,

I basically follow your balance portfolio and the stocks that I hold are between 2% to 6 %. Does it make sense in these unsure days to lower everything down to 3% and hold more cash?
Thanks
Jim

Q: Hello team.
Your thoughts about the interest rate and FX ( CAD/USD )move back home here after Fed cut half percent?
Really appreciate

Q: Hi Gang,

What are your thoughts on the FED rate cut just in? Which sectors do you see this helping and hurting?

Thanks!

Q: Good Morning,
Can I please get your general comments in regards to the rate cut and central bank reaction to the "worst week for stocks since 2008" followed by the "best day for stocks since 2009" It seems these headlines have taken over the decision makers, and more QE/ lower rates because the market has fallen to now Dec 2019 levels- from all time highs! BIG DEAL! There will be no where left to lower rates and so much debt on the government balance sheet when things do truly get ugly. As a young investor am I the only one that feels we should let the free markets play out before the fed steps in, or is this necessary to avoid a recession. It would appear there is really no risk in buying equities since as soon as they start to go lower central banks will prop everything back up