Investment Q&A

Q: B of C has held rates however outlook is projecting perhaps a further rate cut. Household debt load is at an all time high, with little or no margin available for emergency requirements.
Personally I cannot help that a Day of reckoning is coming, as debt servicing for majority of Canadians is coming to a bubble, similar to the 2007-2008 crisis. When home values become an ATM, debt levels only increase further.
What is 5i opinion of this going forward, and if this does occur, would this be the catalyst for the next financial crisis.
Thanks Rick

Q: I have read about the new TSX30 index. Is there an ETF yet that follows it?

Q: Hi Peter and Ryan,
The US market has not done well in May and may get worse due to the trade war with China. The volatility of the market increased significantly. People also talk about a possible recession. I am a long term investor. I have some cash available now. I am a bit hesitant to invest in either US or Canadian market, as the two stock markets are somehow connected. Do you think I should wait a bit or invest in some attractive stocks after the recent market drop? What are they if you recommend the latter?
Thank you,
Yiwen

Q: Good afternoon
I seem to recall that one of your answers to portfolio balancing for ones entire portfolio outside of Canada could be up to 40% US and 10% or so Emerging and ? Europe. I'm approximately 30% US and thinking of going to 35 or 40% due to the strength of the US. May I have your comments on this strategy at this time for a 3 to 5 year time horizon.
much thanks

Q: Can you please give me the total return for the calendar year 2018 for the following:
TSX, Dow, S&P500, Nasdaq, and Nikkei. Thank you.

Q: Jan 18 article on BNN regarding U.S. Hedge fund shorting Canadian Banks. According to them, 80% of Canadian companies are not generating enough cash to support their businesses - the highest in the world. Further they say that 80% of non financial stocks are cash flow negative which they measure as cash flow from operations minus capital expenditures.
Would 5i please comment on this? Most often I read and interpret what I'm reading as a strong opinion from you that most companies that you cover are doing well.

Q: Do you have a resource for accurate tabulated annual returns of the TSX and S&P500?

Q: Hi,
You responded to Kevin yesterday that the TSX Total Return was -8.9%. I found in TMXMONEY symbol ^15NT which they are calling the total return. Using the daily chart I calculate the 2018 return to be -9.6%. Do you know why there would be a difference?
Regardless of the source, would it be possible to include this on your company pages so your readers can easily compare their total returns?

Thanks
Ian

Q: Hi There,
Can you tell me what the total return for the TSX was for 2018?
Thank You

Q: Would you have the 2018 yield for the TSX available?

Thank you

Q: Further to my earlier question today about the so-called predictive value of the inverted yield curve, I think recent stock market action is not due to such a prediction but more due to journalist hype and general equity anxiety. As pointed out yesterday by Stan Wong on BNN, "An inverted yield curve, where short-term rates are higher than long-term rates, has historically been a precursor to an economic recession. We note however that these (recent; ed.)short-end measures of yield curve steepness have not been reliable precursors to recessions. As a recession indicator, the more reliable yield curve spreads have tended to be those with larger maturity gaps such as the two- and 10-year, which still currently indicates a normal yield curve." I do recognize that your table of two days ago did reference the 2-10 yield gap but I still think if a prediction hasn't materialized in 12 months or so, it isn't much of a prediction.

Q: AS per a question August 24 of this year I listed 10 stocks in my TFSA that were sound favorites at the time and i was down and down 7 percent.I have held on due to yours and fund managers advise and am now down 30 percent and am starting to wonder why hold on.I thought the market was close to being done a small correction but starting to feel total capitulation isn't close yet but may happen.High risk tolerance i guess i am not if the correction ends up 50 percent.Will take years to recover.

Q: The size of the Ontario Debt and ongoing deficit are staggeringly huge and will weigh on the economy for decades. And the resource economy out West is severely damaged. Are these not dominant macro factors that will limit Canadian equity returns for many many years to come? If I had a blank slate of where to invest should I not take one look at the Canadian economic picture and just take a pass, 5% position at most? Tens of billions of capital investment dollars have left Canada for good reason, should not we small investors do likewise? Would value your opinion. Thanks.

Q: Do you know the P/E ratio on EPS estimates for 2018 & 2019 for the:
- S&P500
- TSX

Thanks!

Q: I am presently in 70% cash and wanting to rebuild my portfolio--with the emphasis on --dividends ---blue chips and diversity.
Could you please suggest 3 stocks in each of the 11 sectors that would fit
these requirements.
Thanks for all your suggestions over the years
Peter

Q: 12 years of Tse pain
On Oct 31/07 the Tse closed at 14,625, Cnd dollar was at par to U.S and Wti was $94.51 Dow Jones was 13,930 and 10 yr treasuries were 4.47%
I realize that Tse was strong in resources and weak in Tech ,however there must have been a huge flow of funds to foreign markets
In 2007 was there a restriction on foreign content in RRSPs and did Etfs exist at that time?
Do you think that Tse will soon have its place in the sun as U.S. investors can now buy at a 30% discount?
Is Dec 27 the last day for tax loss selling?
Thank you

Q: Is there an end to this stock slaugther?

Q: While your comments could apply to both our Canadian and US markets it is interesting that your slant appears to lean toward US markets rather than Canadian even though the bulk of your research covers Canadian based companies. Sure the US markets are still up this year but it is quite a different picture when looking at the Canadian markets. We are ' not still up' this year but down since January. Interest in the Canadian equity markets is waning for various reasons, taxes, regulatory hurdles, etc. So could you perhaps add some comments that address our markets and investment environment.in the context of our recent performance and future expectations. Thanks.

Q: I have read that the spread between US treasury 10 year and 2 year bond yields has been narrowing, and is currently sitting at 30 basis points. Assuming that the US spread continues to narrow and possibly invert, can you comment on the effect that would have on the Canadian financial and housing markets? And in your experience what would be time frame once the US yield curve inverts for those markets to be influenced? Many thanks!

Q: Generally, if you took out the rise of pot stocks from the TSX year to date, where would the bourse be at today?

15,800 maybe? Or is the sector not that influential yet?