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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: Market timing is generally frowned upon by professionals including 5I.I find myself selling a number of my positions because of valuations and good profitable outcomes. I also find that I am not redeploying that cash because of valuations! I firmly believe in taking profit and some of the greatest mistakes I have made are in regards to holding positions to long. To many times in my early investment life (the round trip) occurred. After a number of years I relized that you are investing 2 commodities "dollars and time" and I could not continue to keep exposing my dollars and losing time. So if I sell my winners and do not redeploy my cash in a timely fashion then I would seem to be guilty of "market timing".

Why am I so wrong!

Randy
Read Answer Asked by Randy on March 21, 2017
Q: My question is about portfolio balance. Right now I am very overweight in technology (30%) But it isn't all the same kind of technology. For example , Facebook, Shopify and Google are not the same sort of business as Avago and Texas Instruments. And they, in turn, are different from Constellation Software and Kinaxis (also different countries). These are the companies I own. So would you recommend I reduce my tech weighting, and to how much?
Read Answer Asked by John on March 20, 2017
Q: I am relatively new to managing my own investments and understand the importance to position sizing etc. I am 62 with of course the need for solid income portfolio in a few years. However as I review my portfolio and determine forward tactics I wonder if I am getting to heavy in sector sizing. For instance when I look at income I have 27% in financials, 20% in utilities, 14% in real estate etc.. Or for growth 8% in hi tech.

What strategic advice can you offer on sector position sizing?

Thank you


Steve

Read Answer Asked by Stephen on March 20, 2017
Q: On Friday Helen suggested an innovative solution re avoiding potential duty but even if it was feasible the solution would not restrict supply which is the goal for the US players.

The softwood lumber trade dispute is not so much about finished lumber crossing the border as it is about land management. In recent years, the largest CDN domiciled companies have purchased 30-40 mills in the US because buying US mills is more profitable than investing in CDN mills. That is evidence against the US claim that gov't subsides make it cheaper to produce in Canada. Also, US owners have been bailing out of operating Canadian mills.

Large US companies want the value of their timber land to increase which is mainly why they attempt to restrict supply. For example, the largest US timber holder is WY, (NY). WY owns about 13,000,000 acres of timber currently valued about $1,000 acre. If they can restrict supply, the average value could appreciate to $2,000 - $2500 acre. The "trade" dispute is more about wanting to increase US based inventory values than unfair subsidies for CDN manufacturers.

Phil
Read Answer Asked by thomas philip on March 19, 2017
Q: I am concerned about a correction in the market (both USA and Canada) and am wondering if I should take some profit given the great run over the last 4 months and hold some cash for better buying opportunities should the correction occur later this year. Recent analysts on BNN are also calling for a defensive position with holding cash. What do you think about this strategy and what percent of a portfolio would you suggest to have in cash? Does 10 to 15% make sense? Thank you for your great service.
Deborah
Read Answer Asked by Deborah on March 16, 2017
Q: I think I know the answer to this however I need to ask anyways-if someone is just interested in collecting dividends and a small amount of growth, and for simplicity, why not put the vast majority of your investments into the various Brookfield companies-throw in a bank and large oil producer and walk away. The history of the Brookfield companies is very good and I figure if they go down hard, the whole economy is in serious trouble. Your thoughts?
Read Answer Asked by Bradley on March 16, 2017
Q: Hello Team 5i, I'm scared about a possible Trump Dump, not knowing what he will say/do next.....so staying away from Single Stocks, but do not want to stay out of Market. Hence looking at ETFs, and would appreciate your Ranking of these.
Read Answer Asked by Austin on March 16, 2017
Q: National Bank released a research report on Callidus that gave a private buyout range of $18 to $22, one year ago. Since then revenues and earnings are up. They came out a little while ago saying the value would now be to the top end of that range. The company released a statement in February saying 17 parties were interested and any deal would likely close by the end of June. The stock trades at around $18. Isn't there excellent potential here for a 10-20% trade in just a few months? Thanks.
Read Answer Asked by Michael on March 16, 2017
Q: Can you rank these co's based on growth potential over a 6-18 month term?

Thanks for all the great insight and information. This service has been a great "investment."
Read Answer Asked by Jeff on March 16, 2017
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