Investment Q&A

Q: I know that you feel now is a time to dip back into the market as most blue chips are down 25% and more and growth stocks are down 50 to 80%, but with the FED still raising rates maybe another 1.5%, would it not be wiser to not fight the FED and wait. I cannot see the markets going up until these rate increases stop.
Thanks again.

Q: In pass recessions how has stock market performance been, % up or % down?
Thanks again

Q: With what has happened with the market and what we might be looking at in the next months or year or so, if you are not in the market, would you invest now or just sit on the sidelines and let this whole mess play out and enjoy your cash?
Thanks again.

Q: Would you please suggest the names of several short & long term US Treasuries ETFs. Thanks … Cal

Q: Hello Peter, Ryan et al:

I know you have answered this question asked by different people! Still, here is a repeat! If only to clarify some of your previous answers.....

How do you differentiate between Bear market rallies and the onset of a new Bull market after a period of correction? Many seasoned pros including some wise old folks who have been around, both Technical and Fundamental analysts, seem to say that the bottom isn't in....yet! Thee will be capitulation. Wait and watch.

As a true subscriber of this newsletter, I have funds allocated in different baskets. However I know that I have to move some of my cash positions if I want to benefit from the new Bull market. Hence this question.
Many thanks.
Mano

Q: Per below capital gains consider an income. Does the below dividend criteria is consider in Toronto, Ontario


It is my understanding that in a non-registered account I can receive up to +/- $50,000 (BC/Fed combined tax rate) in Canadian dividends without being taxed. Is that correct?
If so, I was hoping that you could provide a list of 20 Canadian dividend stocks that you have confidence in that have:
1) a 4% yield or higher
2) are not in or associated with the Oil/Gas sector
3) hopefully enough growth to keep up with inflation

Thanks!

Asked by Brian on October 11, 2022
5I RESEARCH ANSWER:
This is true, with variability based on province. The dividends also must be the ONLY source of income, otherwise some tax will apply. RY, TD, BNS, MFC, T, ABX, SLF, QSR, FTS, AEM, POW, KEY, ENB, BCE, AQN, GWO, FN, EIF, IGM, ET, CIX

Q: Hi Everyone at 5i!!!! I have a TFSA with a goodly amount of Tech stocks, Shop. Light speed , unity software, Crowdstrike NVDA etc… most of which are in the tank. So my thinking is to just hang on for five plus years in hopes of recovery. I see no sense in selling because the realized losses would cause severe heartburn. The TFSA also has half of its value in divided paying stocks .. banks , Fortis,.. etc. So now my question… would you suggest I reinvest the dividends in the beaten up tech stocks in anticipation of a comeback or reinvest the dividends into their source stocks. I am newly retired but don’t need the money and hopefully not for quite a while . Cheers, Tamara

Q: Hello 5i Team
Thank you for the ongoing guidance .My question is about the last two days rally, do you see it as longer term rally or will it be short lived?
Thanks

Q: In your Coverage Summary for Aug 2022, would you please explain the meanings of the columns. Such as for A&W the start price is 21.63, Recent Closing Price is 34.49, yet the Monthly Return is negative. Also what does P&L (2022) & P&L (Total) represent. Thanks … Cal

Q: In today's Q on cheap stocks to buy,U list TSU twice. Do u mean TSU & TOI Please clarify Txs

Q: With oil and interest rates being a big topic in the Markets for awhile - I follow CNBC which provides me with good information available. When the going gets tough, they bring in two of their heavy hitters being David Rosenberg (being interviewed at CNBC studios in New York) also, being interviewed remotely is Eric Nuttall of Ninepoint (is this connected to Sprott?) Seems like the Canadians are in big demand for this type of information.

Q: Hi Guys
I hold a large amount of U.S. stocks, my concern is i have been paying a high exchange rate over the last 4 years purchasing them. If the U.S. dollar falls 20% over the next 5 years or so I'm going to take a substantial haircut on my overall returns if i sell and move the cash proceeds to the CDN side of my Portfolio.
I guess the answer to my question is don't sell them, they all have a great record of dividend increases over the years, and they are in the U.S. side of my non registered Portfolio.
My other thought was to use GLD as a hedge, my thinking is a falling U.S. dollar would increase the value of Gold owned in a U.S. Portfolio
Thanks

Q: Hi Peter and Team! I always look forward to your articles in the National Post. Because of the uncertainty in the world, investing in banks and utilities seems the safe way to go, but I agree that there will a future period ( hopefully soon) that growth stocks will be favoured again. In reference to your article, could you list five growth stocks and five small caps that are poised to provide good returns ? Cheers, Tamara

Q: Hi,
Mr. Jeremy Grantham is predicting that the bursting of this current Super Bubble is almost here! Though reading his newsletter I couldn't find any specific date. His prediction is based on Fundamental analysis though some Technical Analysts have predicted the capitulation is not here yet as well. It seems that there is a convergence of these two seemingly opposing disciplines.

Any thoughts on Mr. Grantham's predictions?

Q: Under Aggregate Statistics in Portfolio Analytics, there is a list of top 3 Canadian stocks, US stocks and ETF/Mutual Funds. What is the criteria to establish the top 3 performers in each category? Is there a calculation undertaken by 5i Research?

Q: The question is about the Communication Services sector. As I seem to recall, this sector is classified as defensive when it comes to interest rate sensitivity. But for my portfolio it is down considerably. One reason might be that there are effectively two diverse groups in this sector - streaming services, like Netflix, and telephone services, like Bell. And now for the question - given these to diverse groups in the Communication Services sector, when it comes to tracking interest sensitivity, would it be more appropriate to separate these two groups with streaming service being cyclical or sensitivity and telephone services being defense. Me, just wonder for future reference purposes. Would appreciate your take on this suggestion.......and also whether would you classify streaming services as cyclical or sensitive when it comes to interest sensitivity........Keen to hear your thoughts....Tom

Q: for the whole year when you get a question on a stock, you have been saying the same thing-we like the company but we need a better market backdrop,we think its worth holding.
but the reality is the market backdrop is not getting better-its getting worse, actually far worse and it could continue well into 2023 and 2024-and a recession is obvious if not already happening.
personally i have liquidated everything except some oil and gas stocks and some long dated options,. i also think your comments and bi weekly updates are way to positive.
remember jerome powell has gone of the rails and has numerous flip flops and macklem is not much better-can you comment.dave

Q: If a person owns a house, should they have any real estate stocks in their investment portfolio?

Q: In various question you are asked to give a stocks entry price. My question is what parameters do you look at to calculate a stock’s entry purchase price. Thanks … Cal

Q: I run 2 balanced portfolios, one for my wife and one for myself. Both are in our TFSAs and each portfolio contain 24 stocks. My question is would it be more advantageous to have the same stocks in each portfolio or different stocks in each to have more diversification. Can being too diversified work against you in certain cases. Thank you very much for your much appreciated advice.