Investment Q&A

Q: For a relatively young investor (mid-30's), is there anything "wrong" with having mostly small and mid cap stocks? Is this ever recommended, or should an investor have a minimum % of their equities as large caps?

Q: I have been using 2.6% as the TSX dividend yield for 2017. Accurate? I read 2.8% somewhere recently. Thanks for your help in clarifying. As always this simple metric is surprisingly hard to find.

Thanks!

Kim

Q: Until recently the pundits were claiming the Can dollar would be going lower in relation to the US dollar, in the last week or so that tune has changed. Given the recent CAN dollar strength, what does your Crystal ball say going forwards? ( and why, US Tax? move to commodities?)
Much thanks

Q: What would you consider the top sectors that represent value opportunities in 2018 in either Canada or the US?

Wishing everyone a healthy, happy and prosperous 2018.

Thank you for your valuable assistance.

Q: I believe there is not much opportunity in the the technology and health sectors in Canada, so have invested in USA to gain exposure to those sectors. Are there any other sectors where investing in USA be preferable to maintain proper diversification by sector?

Q: Listed above are the stocks i currently have in my TFSA Would you suggest selling any of those listed and what would you suggest adding for 2018? All are approximately equal weight in my portfolio?
Thks for all that you do

Marcel

Q: Hello Peter, Ryan and company!

First off, congratulations on the Balanced Portfolio once again beating the TSX Index! Not an easy feat, since typically most paid money managers cannot.

Looking at 2018, with the U.S. tax reform Bill likely becoming a law today, what stocks covered by 5i benefit from a lower U.S. corporate tax rate and immediate expensing of capital purchases?

Happy Holidays to you and your family,
Angelo

Q: ...lofty US markets, tax cuts, presumed higher growth, greater chance of more interest rate hikes....would you put new money into the american market and what changes, if any, would you suggest to equity/fixed income allocations for the short to medium term? Thanks.

Q: I know your stock suggestions tend to be for medium and long term holding, but do you ever look at seasonal strength when you make investment decisions ie. US Small Cap tends to be strong now to April or May

Q: For new money being invested in 2018 and assuming the US passes tax cuts/reform what percentage of one's portfolio would you allot to 1)Canada, 2)US and 3)Global/International?
Also considering roughly 10 sectors what 3-4 sectors would you focus on and could you give a large, mid-small cap stock for each.
Thanks kindly - Merry Christmas 5i and the best in 2018!

Q: Some Canadian stocks have been and will be oversold by or before 27th which stocks do you think will be the good buy for short or long term?.

Q: Good morning Peter and company,

In his will, for his wife's benefits, Warren Buffett has instructed the trustee to put 10% of the money in short-term government bonds and 90% in a very low-cost S&P 500 index fund such as Vanguard’s.

Would that be a good practice for all retired individuals living off their stock portfolios by withdrawing 4% annually, if they are prepared to live with the market's fluctuations?

Bond values have nowhere to go but down as central banks raise interest rates. Would 10% cash be better than 10% bonds today?

Thank you for your considerate answers to my questions.

Milan

Q: What do you think will be the go to sectors or top sectors for 2018

Q: Hello,
Considering the significant run up that has taken place, would you recommend getting into the American market at this point?

Q: It looks like the year is going to finish with a lot of happy people. I'm not asking for a prediction but is this movement cyclical and if so what generally happens as the cycle progresses in the next few months?
I would like to thank 5i and all the question askers, I am learning every day with the many points of view.
Peter

Q: Hi - I believe we are at or near a top in all North American Markets - I am looking for ETF's or Individual stocks that will do well in a correction - What is your recommendation in 1) Canadian Equity, 2) REITS 3) Consumer / Staples 4) Commodities - thanks

Q: By letting my winners run to overweight positions, while recognizing the importance of overall sector allocations, I am in a constant debate with myself feeling the need to rebalance. My question is regarding 3 sectors with the backdrop of assuming we are in a rising interest rate environment. Currently having a 10% Utility weight, with 0% Real Estate and Telco's, would you suggest trimming Utilities to acquire one or both sectors, if so what names would you suggest? If rates rise faster than expected, will all 3 sectors perform similar ? I watch my portfolio very close, am quite comfortable with higher risk for higher return.

Q: Do you use Stop Losses? If so what would be your criteria ?
Thankyou

Q: Marijuana and blockchain stocks seem to be soaking up most of the small cap/microcap dollars. As a result, a number of quite cheap stocks not in those sectors are being ignored. Do you think there is anything to this thesis?

Q: I have $500k in cash to invest. Getting into the market with current economy and market conditions is hard for me to do. I have asked around at other firms and of course the answer has always been "Get in now. why wait", but I believe that they are biased because they will make their fees from me even if I lose money during a market correction.

As an example I did some back calculations using a tool on Steadyhand's web page and the rate of return from 2007 to 2016 compared to 2008 to 2016 is significantly different. By waiting one year the annual ROR changes by almost 100% (5% 2007-2016, 11% 2008-2016). It is interesting how nobody ever talks about this.

I would like to wait until the market correction happens, whenever that may be, but I need some unbiased advice.

I realize that this question has probably been asked before but I think that the answer to this question has to take into account current conditions and where the market is compared to historical norms and averages.

If I was using one of the 5i portfolios it would be the Income portfolio.