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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: Given the recent run up in certain semi conductor and chip stocks, would it be prudent to use an ETF such as SMH to better diversify risk right now if only one position available in a portfolio? Or, going the individual stock route, how would you rank the following in a moderate risk portfolio QCom, AVGO, TXN, NVID, AMD, SWKS, INTC?
Read Answer Asked by Gerry on November 15, 2021
Q: Although it is a US equity, it is mentioned here often enough that perhaps you will answer a question about it. APPS has received many favourable comments from 5I; can you explain why you like it? It recently has a noticeable reduction in share price.....is this a buying opportunity or a change in momentum? In a growth oriented TFSA, I am thinking of trimming some NVDA, CRWD, and AMZN to create some funds to purchase a small position in APPS. Those 3 have grown but are not (yet) too high of a weight , this would be to try to boost results. Is it a move you would make, or would you just stay the course? Many thanks for your excellent service.
Read Answer Asked by Leonard on November 15, 2021
Q: NVEI, MAGT, and UPST have come down drastically since their highs a short time ago. Is this another AT because unfortunately I bought it at $22. I am concerned that these three seem to be doing the same thing.
While I have seen some of my picks recommended by 5i go up drastically of late - NVDA, AFRM CELH, NET and GOOGLE, I would appreciate your thoughts on the ones above-noted going down. Thanks again,
Read Answer Asked by Dennis on November 15, 2021
Q: Hi Peter,

In response to Robert’s question of Nov 10 regarding your thoughts on what folks will wish they had done before interest rates start going back up, you said “…we would reduce very expensive growth stock exposure…”

My 24 year-old has a concentrated, strongly growth-oriented TFSA (at least 10+ yr investment horizon). He’s comfortable in holding higher weightings and “letting the winners run” of those companies that seem to have “staying power”, recognizing that there will be inevitable periods of under performance in their stock performance from time to time (LSPD, for example) but that over the “long-term” they should produce attractive returns. The growth stocks that have done well for him so far include:

GSY (+434% return/16% portfolio weighting)
LSPD (+432%/9%)
KXS (+161%/15%)
TOI (+42%/12%)
HUT (+103%/6%)

He also has the following growth stocks that (so far) have been less than stellar:

AT (-39% return/4% portfolio weighting)
MAGT (-29%/3%)
NVEI (-10%/4%)
WELL (-1%/7%)

Which of the above would you consider “very expensive” and reduce exposure to, regardless of current weightings? In general, aside from personal risk tolerance/comfort levels, how do you determine by how much or to what level, you would reduce “very expensive” holdings to versus simply “letting the winners run” over the long-term? Which of the above stocks that are currently in the red would you reduce exposure to given this is a TFSA (no tax loss benefit if selling for possible later buy-back) - rather than riding out (potential opportunity cost) what is hopefully just the volatility inherent in growth stocks and a period of under-performance (of indeterminate length, admittedly) - assuming no changes in the investment thesis and fundamentals of these companies and the long-term investment horizon.

Thanks, as always, for your insightful help.
Read Answer Asked by Bruce on November 13, 2021
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