Investment Q&A

Q: I have these 7 stocks, they comprise about 30% of the equities I own, in part because the their stellar performance in recent months. Two parts to my question: first, though they are all categorized as "tech" ( well, maybe not Goog), I am trying to get a sense of how different they might be from each other so that 30% is better diversified than the label they fall under might suggest? Can you briefly describe the underlying businesses of the 3 Cdn ones and indicate if you see all 7 as diversified. Second, if the stock market should hit another significant pull back (like March or otherwise), would these 7 be resilient enough to avoid major losses, and are some better than others in this regard? Thank you for your excellent service.

Q: Good morning,
I own a small house in Ottawa that is free and clear with a current market value of approximately $350,000.
A recent discussion with my trusted mortgage broker confirmed that a 5 year term (Closed & Fixed) term mortgage can be obtained at a rate of 2.29%. This mortgage is said to be:
a. insured through CMHC,
b. portable, and
c. transferable.
At that rate of 2.29% and given that the interest paid would be tax deductible if I use the funds for investment purposes, I'm seriously considering borrowing around $200,000 and investing this amount for an initial 5 year period with an expected net rate of return on investment of 4.5% .
Q1. With $200,000, what are your thoughts of splitting this amount in 5 different chunks of $40K in the following instruments:
a. Mawer Tax Effective Balanced Fund,
b. Mawer Global Balanced ETF Fund,
c. Vanguard Balanced ETF Portfolio,
d. IShares Core Balanced ETF Portfolio, and
e. BMO Balanced ETF

Q2. As an alternative to the above and given the 5 year time frame, would your preference be to invest the $200,000 in a selection of best in class individual stocks split between different sectors and if so, would you be so kind as to provide me with ya listing of your best ideas at this time.

I thank you and look forward to hearing your thoughts on both of these investment strategies.
Francesco

Q: I would appreciate 10 US and/or Canadian small cap growth stocks to invest in for the next two to five years.
Clayton

Q: Harry asked an interesting question about investing in US Tech stocks and wanted an ETF. I did a 52-week comparison of the performance of the 4 mentioned Tech stocks with the ZQQ ETF. If my rough calculations are correct, one would have almost doubled their money with these 4 stocks compared to the putting the same money in ZQQ over the last 52 weeks. Past performance is no indication of the future, but I would like your thoughts on buying these 4 now versus the ETF. In my situation I would put 5% of my investments in these four and currently well diversified and a good chuck of fixed income (>30%). For me maybe okay (your thoughts please) but in general would this also apply to most investors. Please respond to my situation and the general situation if you can please. Thanks so much. Dan C.

Q: Good morning 5i, I am piggy backing off a recent question by James, but if you can disregard sector diversification and risk is also not an issue and main goal of course is capital appreciation.

"If you were starting a new account with 100k with a portfolio of 10 US equities, with a 10 year time frame, which 10 would you currently choose?"

Q: Hi 5i, With CHINA-US trade war scalating, what are the chances of apple-manufacturing returning back to the USA, and is it a good time to switch from apple to one of : TESLA, GOOGL
Thanks

Q: Hi 5i.
Thanks in advance love you guys! Recommend you to everyone I know. :) For RRSP if youcould buy one US stock which would it be?
I am well diversified, just have cash to dispence.
THansk P

Q: Hi 5i - I have been thinking of starting a half position in Apple, looking at a 3-5 year hold. Do you think the timing is OK or would I be better to add to my current holding in Alphabet which is only a quarter position. Or should I hold off and wait for another market dip. Thanks,

Q: I have $9000 US to add to a US margin account. I have 4 names in mind as noted above which one you think has more share price appreciation, could you please rank them? Thanks.

Q: Hi 5i,

I'm concerned with all the sabre rattling leading to a US/China trade war. Of particular concern are American companies that are needing China as the engine for growth. 1. Do you think this is a valid concern? 2. Would you position your portfolio more domestically/defensively for a trade war? 3. What would be some good alternatives to these three companies that are more domestic (or Western) centric for growth?

TIA!

Q: Hi, I'm looking to add to the fintech world. I'm sure online purchases and contact-less (cash less) payments only continue to increase.

What is your favorite growth stock in this category (1) overall, and (2) one that is well positioned to succeed in both the physical space (contact less at stores) and online (web payments).

C.

Q: I have these equities in my US Margin Account. I would like to raise some additional cash ... just in case. Which of above would you trim first. Are there any which should be sold for a tax loss if possible such as CRM and ISRG, where I am slightly negativ.
Thanks for your answer
Albert

Q: The financial people keep on saying they are looking first at the company`s Balance Sheet. Therefore which, Stocks have the strongest and best Balance Sheet? Also, include US stocks as well as Canadian stocks, because I do hold both.

Q: Hi group if you were to buy 3 stocks in Canada + 3 in the US today (or would you wait?) regardless of sectors . What stock would you buy /why. Of course it goes without saying that they would be minimally effected by the Covid -19 virus

Q: Could you explain why VGT seems to perform better than QQQ. And why you recommend the latter more often than not.
Thank you.

Q: Hello Team, Considering the strength and outlook, would you prefer to Add to ZS or you see better opportunities - AAPL, FB, AYX, ROKU, NOW that had dropped in price but offer better risk reward. I own all of these but wanted to add money to 1 or 2. ( without sector consideration) . Thanks

Q: Hi 5i team,

I follow the DOW stocks a lot as they are a barometer on the market. They form the core of my portfolio and I add and trim around them. You mentioned in an earlier question that big caps are likely the quickest to recover. Earlier I lightened up on some high beta tech names and have some dry powder. On the Dow, which ones do you see as are the top 3-4 names having the potential for the strongest recovery over the next year or so. I manage my portfolio closely, so I am not concerned about sectors or weightings here. There are a lot of candidates and some have really been beaten up and others not so much. The financials have been beaten up, but I stay in Canada for those anyway, and I have no interest in the oils.

Thanks again for the insight on the DOW stocks. Thanks for your great work, as some days you are turning out answers faster than I can read them.

Dave

Q: hi, dear team
i just got some money for longterm investment. how about this list ?
can you tell me at which price i can buy?appreciate!
best regard
Jacky

Q: hi Peter
what do you think about this company, SPOT, is it a sell, hold, why
if sell what company to replace it, thank you.

Q: If you only have enough funds to buy either AMZN or AAPL which one would you buy?
Thanks