skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: There is a lot of noise about how expensive stock markets are and that we are overdue for a significant correction, particularly in the US. But if I look at my US stock, P/E's are very reasonable (see AAPL), and less than ten in some cases (see GILD).
What gives?

Read Answer Asked by Rick on October 04, 2017
Q: Hi Peter and group as always I value your opinion. I am getting increasingly nervous about world affairs (Trump)- do you have an opinion on taking some risk off the table?If I decide to take some profits on my cash trading account do you know any way that can off set the Capitol gain?. Just to confirm my understanding is that the Capitol gain is due and payable immediately. Does leaving the cash in the account make any difference as to when the tax is due and payable. Thanks PS I understand this is 2 questions
Read Answer Asked by Terence on April 04, 2017
Q: Hello 5i team,
Your article on hedging for a market downturn is quite timely; thank you.
A 5% or 10% correction is not too worrisome as it could be recovered in a relatively short period of time.
I do not foresee a "black swan" event; do you? In my opinion, the current steepness of the yield curve does not signal the eventuality of such an event.
Regards,
Antoine
Read Answer Asked by Antoine on March 01, 2017
Q: Lately there’s been a profusion of articles warning about the deeply negative effect Trump’s policies might have on Canada, with respect to trade agreements, taxes on imports, foreign investment shifting from Canada to the USA, etc. To the extent an investor should be influenced by this new outlook, I was wondering if you could list the sectors and associated companies in Canada which you think would be hurt the most if the dire warnings come true, and which ones would be the most resilient. Also, are there any particular foreign investments Canadians should be considering at this time? Let’s assume a time horizon of at least four, and possibly eight, years. Thanks for your insights.
Read Answer Asked by Brian on January 30, 2017
Q: Looks like us financials are losing steam / as is the US currency against the Canadian $ I have some profit in US financials would you take the $ and run or wait?

Also what do you see for the US $ against the Canadian currency going fwd especially after Trumps comments today that the US $ is too strong ? - I under that this is 2 questions thanks as always for your insight
Read Answer Asked by Terence on January 18, 2017
Q: Some economists argue that as debt to GDP ratio rises, it reaches a certain point when further fiscal stimulus will have little effect. Debt can be measured as Government Debt or Total debt (Government, Corporate and Individual). David Rosenberg in his New Year musings about the way things might be going in 2017, (a rare freebie for cheapies like me who don't pay for his missives) uses nonfinancial debt. How is "nonfinancial debt" defined, pray? Happy New Year and many thanks for your help again. Henry
Read Answer Asked by Henry on January 05, 2017
Q: Hi 5i. I saw an interesting interview on BNN's 'Money Talk' (Nov23) with Damian Fernandes of TD Balanced Growth Fund. He was discussing the impact that a Trump reduction of corporate taxes would have on the S&P 500.
Hereis the link : http://www.bnn.ca/money-talk/money-talk-trump-s-impact-on-markets-and-sectors~1001584
If you have a chance to see it I would be very interested in your opinion.
As a result I am looking into investing in a S&P 500 ETF. I have looked at iShare's IVV (US$) which has 506 holdings and a MER of 0.04% - this would require converting CA$ to US$. Two other Canadian ETF's are Vanguard's VFV containing 509 holdings and MER of 0.08%, and iShare's CA$-hedged XSP which contains 1 holding (being IVV) and has a MER of 0.11%.
Two questions:
1. can you explain why XSP (hedged) MER would be almost 3x the IVV Mer that is its sole holding.
2. I assume that Vanguard's VFV is "unhedged". Can you explain how the Hedged product (XSP) differs from the "unhedged" product.
Thanks as always for your great advice.
Read Answer Asked by Terrance on November 27, 2016
Q: I am interested in your views on why the stock market suddenly became so enthusiastic about Trump when it was continuously going down a couple of weeks ago when it appeared that he would win. In the middle of the night on Nov 8th, the Dow futures were way down as expected and then miraculously they rebounded in the morning. Should we expect this to last?
Read Answer Asked by Maria on November 11, 2016
Q: Looking towards an isolationist, anti-trade Trump presidency, which sectors in Canada do you think would suffer most? I'm thinking of autos and lumber, as a start. Are there any names on the balanced portfolio which would be particularly hard hit if NAFTA disappeared and their US exports were threatened? Ie, Magna, SJ.
Read Answer Asked by John on November 09, 2016
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!