Investment Q&A

Q: Most companies report earnings after market. Some choose to report before market. Are these usually long term policy decisions or do firms choose on a Q by Q basis? And should we read anything into it when a firm chooses to report before market?

Thanks,
Mark O

Q: The issue of mutual funds holding negative yielding global gov't bonds is an interesting one as the size of negative yielding bonds keeps rising. The lack of cash flow to finance management fees, and pressures on portfolio managers to play the yield curve to list a couple of examples sounds very tricky. Have you explored the subject in your shop?

Q: I am very pleased with the Portfolio Analytics, and have found it to be a quite useful tool. Thank you for building this product.

Broadly, I would like to better understand how you developed your recommended sector/geographic allocations in the Asset Allocator. In particular, I would like to understand:

1) Certain assets (e.g. gold, REITs) are missing or very low percentages. What is the basis for this recommendation in the Portfolio Analytics?

2) Most if not all broadly based core index funds have a greater allocation to financials than the 15% recommended in the Portfolio Analyzer. Why are you recommending a 15% allocation?

3) Are your recommended asset allocation percentages static, or are you planning on adjusting these percentages over time as markets change?

4) Given that markets typically revert to the mean, how do your recommended allocations compare to the mean sector percentages of major indexes, for example EAFE or the S&P500?

Any insights you can offer to help me better understand the basis for how these asset allocations were developed would be most helpful. Thank you for this excellent service!

Q: Peter Shiff was recently on USA Watchdog.com. He basically recommends that investors switch to gold as he feels the US (fiat based) currency will become devalued as bond investors demand higher rates given the huge US deficits.

What is your opinion of gold, and gold stocks, as an investment? Should investors allocate a percentage of their portfolio to gold as protection to a possible collapse in the bond and equity markets?

Thank you again for your insightful advice.

Q: Hi
I know you are NOT momentum investors!
But I know from your answers you watch for the trends and repeatedly point to the lack of traction in the Energy sector.

What are the momentum factors/ trend changing indicators that you do consider when you answer your subscribers' questions?
Are there any newsletters/blogs/that you respect/follow?

Thanks!
Mano

Q: I have to cash out 2/3s of my portfolio over the next 6 weeks to buy a house. Would you cash out everything at once today on strength or average out specific holdings based on technicals, earnings reports, and dividend dates. if the latter, What other criteria would you consider. Thank you.

Q: A PSA for all. I finally achieved my first double as a member of the 5i fan club. The stock is...... drum roll.... CSU. Bought in 2017 at the low low price of $650.00.

My next double would seem to be BYD. Bought in at $96.00. So for those out there who think that stocks like the one mentioned are too expensive, take heed. Not all work out, but the doubles help.

Q: Where can i find a list of bonds that trade on the tsx.Thanks Phil

Q: I currently have about 10% of my portfolio in money market funds or cash. For a while this seemed like a good idea and I have seen other portfolios with cash. but its over a year now and the cash just gets more and is earning very little. I see from some other questions-answers that you do not recommend holding much cash. what do you think I should do? Reduce the cash? and to what extent? I have no need for cash now and have a moderately sized line of credit if there were an emergency. thanks

Q: In your Oct 7 market update you show Tsx PE at 14.4% , a yield of 3.4% yet the Globe and Mail dated Oct 5 shows the S&p TSX composite PE at 16.6% and a yield of3.2% as of Oct 3 Please explain the difference particularly the wide variance in the PE

Q: In these turbulent times I'm wondering about trailing stop strategies. Haven't used a stop before, any suggestions.

Q: I have a question about asset allocation. I'm 70 and don't need income from my portfolio. Currently I have 75% in equities fairly well diversified and 15% in fixed income, mostly bond ETFs (rest cash). You recommend having 25-33% in fixed income depending on how I answer your asset allocator questions. why do I need any fixed income at all if I do not need the income now or for the next few years. When I do need this income, could I not convert to bonds ? The bond funds that I have have been about neutral over the past couple of years; some have gained and some have lost value. they have paid out interest but then so have the equities to a considerable extent. thanks

Q: In todays' Q&A I've noticed the expression "the market is very weak and in a 'risk off' mode" used at least twice in your answers. Could you please explain what this means and the significance of it for a retail investor?

Thank you,

John

Q: There was a article in the Globe on the weekend about what could happen if your broker went bankrupt or insolvent. They stated it was conceivable that a client of the failed broker could lose all their shares. They talked about the CIPF protecting you up to $1 million but if you had more assets than a million then you should have more than one broker. I am just wondering how that could happen? The client still owns the shares not the broker. Under what scenario could this be likely or even possible?

Thanks Ken

Q: I have noticed that volumes were high on most of the stocks on Sept 20 and price went up to. Do you have any idea why? Below are a few examples

Example; RY, TD, Dir.un, SMU.un

Thanks for your great service
Hector

Q: I have a relatively large cash infusion (an additional 20% of my overall portfolio value) to invest. Over what timeframe would you recommend that I gradually add to/start positions with this cash? Do you have any other general advice re: how best to invest the cash as part of my portfolio?

Q: Just curious as to what your opinion is on Michael Burry's views on index funds. He's been saying they're in a bubble similar to the subprime CDOs that caused the 2008 crash. Thanks.

Q: May I please have your opinion of MLI Marble Lending Inc. Regards ...(MRBL)

Q: Can you please recommend a value ETF in Canadian and USA dollars. Which one is your favourite value ETF

Canada
Global
USA

Thanks for your great service
Hector

Q: Any info on this fund is appreciated, i.e, mer, fund manager, nav, risk, size, etc. Thanks. (Waratah WCAL4F)