Investment Q&A

Q: Hi!
My question is around what to do with high growth, unprofitable technology companies that were once huge winners. If one has a small portion allocated to these companies, does it make sense to hold and one day things could turn and these stocks can gain again. There is so much talk to switch to value/cyclical/materials and that trade can last for a very long time. My guess is you favour diversification which I have, but of course wonder if these unprofitable tech names can go down another 50 percent and will they ever recover?? Which of the high growth unprofitable tech names would you be adding to or would you only add to profitable tech like Meta, Amazon, Google, etc...
Thank you!

Q: Good morning 5i
Japan, has been struggling though long bouts of stagflation for a long time (10 years or more). High debt and low growth (after inflation) seems to be a reoccurring theme today. I would say that most G7 countries are pushing the limits of room on the debt servicing side. What metrics are similar to the "Japan" experience and what metrics are not similar?

Q: Canada just reported 6.7% GDP growth, how much of this is inflation.

Q: Generally, for a long-term investor, in this type of market would you be adding to growth stocks (out of favor but prices are down) or value ("good" for this environment but prices are not down or less so)? Thanks.

Q: Hi 5i Team - Could you provide two or three top picks in each of the following sectors: Real Estate, Consumer Staples, Financial, Industrial. Any market cap is fine but with a focus on mid cap. Also with a focus on Canadian Equities.
Thanks.

Q: Portolio Analytics shows that I'm woefully short in fixed income. I am wholly unfamiliar with the category - is it as simple as shopping for the best GIC rate, or are there other, better options I should consider? Please give me some recommendations. Thanks.

Q: To everyone at 5i! I would like to take a minute to sincerely thank you for everything you have done to help me along with my investment career. I have been with you now since Jan.10, 2015 and am about ready to renew my membership next week. Your service has been invaluable to me and I have learned so much! With your help and advice my portfolio has grown substantially . During this volatile market time, your guidance has kept me grounded and has kept me focused on my investment objectives. Thank you again!!! Kind Regards, Tamara

Q: Happy Family Day to everyone at 5i! I am a firm believer that technology is our way in the future and holds great potential for growth. From all the research that you have done, which two technology stocks, either US or Canadian hold the greatest potential for future growth and why. Cheers, Tamara

Q: Hi 5i Team - Could you provide the names of some beaten down stocks that have a decent chance of recovery over the next year or two. This is a relatively short timeline but I'm looking for companies that still have a good balance sheet, are well managed, have good prospects, and yet have still been caught in the downdraft along with the negative market sentiment. Any sector and any market cap but with a focus on small to mid-cap. Thank you.

Q: You have equity; stock, cash, diversified, etf, as categories but no fixed income category for bond etf's. Is it possible to get a category for fixed income?
thank you
Stanley

Q: Hi 5i Team - My question is both general and specific. When putting a value on a company the term multiple is often used. When talking about multiples could you explain what kinds of metrics this may involve, such as Price per Earnings, Price per Sales, Price per Cash Flow, etc. What multiples do you feel are the most useful in assessing the value of a company. Also what is the difference between cash flow and free cash flow.

The specific part of this question applies to SHOP. What are the most useful multiples to evaluate SHOP at today's price. Is it possible that it is now reasonably priced without the added bonus of expected growth (albeit slowing growth) Thank you.

Q: With your expertise are you able to articulate the de coupling of Small/Mid caps in comparison to the Nasdaq/TSX/Dow. Small/ Mid caps are down near early 2020 lows and yet the broader index's do not reflect this. Historically does this happen often? The underlying sentiment has been quite deflating.

Q: Dear 5i
When the pandemic first started and the market dropped substantially , some days even7-10% in a single day i think it was because it was such a new and scary scenario that none of us had experienced before and thus created a lot more fear in the markets . Pandemics fortunately are not that common and creates a situation with a lot of unknowns when they do occur .
Wars though serious and scary as well have occured more often in history and though terrible, do not represent the same degree up unknown as a pandemic does . That being said , what would be your best GUESS as to what the market reaction would be with regards to a Russian invasion in the Ukraine .I suspect there would be a sharp reaction by the markets to the tune of a 2-3% downturn but certainly not the 7-10% downturn in a single day when the pandemic first hit .
I`m trying to remain level headed with regards the the Russian situation and would welcome your input . I know it is a guessing game but i feel your guess might be a more accurate guess than most of the rest of us .
Thanks
Bill

Q: Hi, Thanks for all the great advice. What would happen if an ETF or mutual fund (or the organization) becomes insolvent? Would the investor's holdings segregated in some way? Would it be safer to hold the actual securities in a CIPF covered brokerage account rather than an ETF of stocks or bonds?

Q: Being "salevicted" by the landlord after receiving an N-11 termination of tenancy notice. Offered first right of refusal on a purchase of it in today's unsustainable housing market. Have obtained an approval for a mortgage from the bank.
I am 70, retired and live on my pensions including a 10% monthly saving transfer to cash account. Portfolio income mostly reinvested.

My Issue is how best to raise 20% down payment from my investment portfolio built over last five years based a lot on 5i sample portfolio models, so 33 (model suggestion) holdings across all three portfolios today plus another 25 other ones all held in my cash and TFSA accounts in mostly a diversified total portfolio (no sector is more than 15%). Do I sell losers first in cash and also those that have not grown very much conserving the dividend payers, then draw some from growth oriented TFSA before before returning to cash to trim some good performers?
What strategy would you suggest for raising the down payment money and minimizing and delaying the tax as well as respecting a diversified and growing portfolio objective while treating mortgage payments as more costly "rent"?

Q: Scotia I trade gives me access to purchase GICS, just like stocks from my account.
They state all our GIC issuers are members of Canada Deposit Insurance Corp.
My Question is would you be comfortable purchasing GICS from the following group, up to $100,000 ( the CDIC Coverage) as they provide much better rates than our big 4 Banks.
1) Versabank 2) ICICI 3) B2B 4) Concentra 5)General Bank 6) Equitable Bank

Thanks Guys !

Q: with oil at 91.00 and nat.gas at 4.25 why are most cdn oil and gas companies selling as if oil is 65-70.there are so many examples of undervalued companies like arx, tve, bte, hwx, meg,i could go on and on but it is hard to understand. dave

Q: Hi All at 5i! With regard to Denise’s question on Riff strategy, I found Daryl Diamond’s book “ Your retirement income blueprint” to be very helpful. Cheers, Tamara

Q: At the end of 2019 the U.S. 10 year yield was 1.92% and the Nasdaq closed at 8972.
Today the U.S. 10 year bond yield is 1.96% and the Nasdaq is up over 60% to 14,736
I realize that earnings have increased since the end of 2019 but I wonder in your opinion is the Nasdaq over priced and is due for a severe correction?j

Q: Please list companies in your balanced equity and growrth model portfolios that are now in bear market territories and of those what would be your top 5 listed in preference to add to for a long term hold.