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: Hi Peter
Just went through my portfolio and these are my asset mix results.
Tech - 19.8 %
Basic materials - 17.9%
Consumer Cyclical. - 11.7 %
Consumer Non Cyclical - 9.4 %
Energy - 9.0 %
Financial - 8.0 %
Reits - 4.5 %
Health - 3.4 %
Telecom - 3.8 %
What do you think of my sector waiting? Any thoughts on sector performance going forward... Should I be shifting my percentage on any of the above sectors going forward from here?
Appreciate your advice always!!
Read Answer Asked by Mike on August 25, 2017
Q: Buy the dip. I hear this all the time. I understand and accept the concept of buying a stock which is down temporarily. But as a conservative investor, I look at the long lists of stocks on my watch lists and in a sea of red, my eyes are drawn to the green, to the stocks which keep chugging forward even on a day when the markets are way down. Unless there is some immediate news driving that stock, my inclination is to think "This is a stock with strong demand, and whose owners don't want to sell. I should buy that, not the ones which are dropping like rocks." What do you think?
Read Answer Asked by John on August 23, 2017
Q: Good morning Peter and Team,

I just read about David Driscoll's recent appearance on BNN, where he summarizes his eight steps to a winning "investing recipe":

Here are eight steps to a winning recipe:

Low fees: The lower the fees, the more you make.
Low turnover: By investing in businesses and not trading stock prices, transaction costs stay low and you keep more of your capital for growth.
Invest in companies that consistently grow their free-cash flows: These companies have the financial flexibility to raise dividends, invest in innovation and make strategic acquisitions.
Diversify globally: Long-term returns outside North America have historically been one per cent to two per cent higher.
Re-balance the portfolio when necessary: Having a high concentration in one stock can lead to trouble if that company’s stock price crashes to Earth (i.e. Valeant).
Avoid correlated assets: In 2008, all the Canadian banks fell 40 per cent, not just one of them. Pick one Canadian bank and move on.
Manage your cash prudently: Given that the market has risen for eight years, it’s prudent to hold some cash to take advantage of opportunities if the market corrects.
Choose stocks with above-average annual dividend growth: The average growth rate of stocks globally is about seven per cent. Those that grow their dividends faster provide investors with greater income to use in retirement. Their share prices also tend to grow at a faster rate.

Seems to me that Mr. Driscoll must be a 5i member, since most, if not all, of his points have been mentioned from 5i over the years! In any event, it's always reassuring to see other financial types who share 5i's philosophy!

You may publish at your discretion. Thanks for everything you do to help the small retail investor!
Read Answer Asked by Jerry on August 22, 2017
Q: Hello, would you classify all of the following as industrials? My weighting (in order shown with highest first) is 24% so if they are all industrials I need to trim. I assume you'd get rid of DRT. If I also would get rid of another I could bump up my ZCL. (I feel comfortable at 20% weighting so if I've mis-categorized I may not need to do anything).

SIS
NFI
utx (US)
gps
wsp
bip.un
drt
zcl
pte
Read Answer Asked by Kel on August 21, 2017
Q: I am a new member. So, sorry I am not familiar with how reports get published. I just read report on TPK with C rating. This is my own preference but as a member, I would like to know about the companies with possible good future growth which can enhance our portfolio value. In that perspective, the reason behind publishing report on TPK.And how would this report is helping me.
Thanks so much, I am a big fan of your questions-answers, and you guys are doing fabulous job.
Read Answer Asked by Pradip on August 21, 2017