Investment Q&A

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.

Q: Which Canadian Index ETF would you suggest holding in your portfolio?

Thanks for the great service.

Q: You've referenced sentiment indicator. What is it currently and where do I find it?
Thanks!

Q: Dear 5i
I believe its probably a good time to start buying back into the market slowly over the next couple months but i`m concerned that i`ll buy quite a bit only to see values go down once a recession hits . I know there`s no guarantee of a recession but it does look very likely that we will have one to at least some degree . With the recession possibility in mind do you still think buying selective stocks and ETF`s over the next two or so months is a wise strategy ?
Thanks
Bill C

Q: An article in the Globe calls this a bear market rally - What do you think the chances are he might be right?? Thanks , Jim

Q: i am looking for 3 small cap canadian or u.s companies for growth until dec 31-i know you do not like time limits but that is on me. no oil and i already own lots of acuity and goeasy and inmode and crox. thanks dave

Q: When doing my do diligence and research on a stock there are of course many fundamentals and ratios to consider---I count 11 on my spread sheet--I think they are all important but can you boil that down to maybe the 3 most important.

Q: This is not a question, but an experience I'd like to share.

I have subscribed to Peter's covered call selling for many years. For instance I had a September expiry $30 CC on CCXI that gave me a $1.50 credit. So, the stock was selling at 24 and the CC strike was 30 and the credit for selling the call was 1.5. So potentially I could make a max profit of 7.50. Not bad I thought.

Then I woke up this am and was confronted with this:

https://www.tipranks.com/news/press-releases/amgen-to-acquire-chemocentryx-for-4-billion-in-cash

Be prepared for that eventuality if you use the CC strategy. Even though it happens much less frequently then desired it does hurt the greed part of our ego. No doubt about that.

Sheldon

Q: What are 5i’s thoughts and analysis on $CAD vs $USD?

The Financial Post article below highlights forecasts of 5% upside (loonie towards .80c usd). What do you expect? Time-frame, certainty in closing the gap, etc.

https://financialpost.com/executive/executive-summary/posthaste-why-the-canadian-dollar-isnt-done-yet

Would now/months from now be a good time to convert some $USD to $CAD (i.e. moving over US equity index/stocks in USD to the same holdings in $CAD).

Q: Dear 5i crystal ball.
Re recent comments on a market rallying just before and/or after announcement of a recession. The merits of which said recession seem to be debatable, but the market rally is in plain sight. Much of what I'm reading suggests that with increasing rates, the economy will slow, as intended, inflation will succumb, and a real recession will occur sometime in the next 12 months, accompanied by a market downturn. Accepting that the market is forward looking is the market currently looking beyond the real recession yet to occur, and therefore the current rally is sustainable, or are we to expect another market dowturn in the near future?
Thanks.
Peter.

Q: US Div Stocks vs CAD Div Stocks? I know the Dividend Tax Credit only applies to Canadian Stocks, but these days some good US STocks are paying 9 to 11 %. What is the Dividend Tax Credit worth in terms of %? I guess it is still better to buy Canadian Div Stocks:
The federal dividend tax credit as a percentage of taxable dividends is 15.0198% for eligible dividends and 9.0301% for non-eligible dividends.

Q: Good morning everyone at 5i! You have always said that you can’t time the market. I am going on the premise that the market is close to the bottom, and it is time to slowly start to add some names to the portfolio and to add to existing ones. Could you please suggest 5 growth and 5 income stocks ( US or Canadian) which you consider good buys at this point on time? Cheers, Tamara

Q: On July 14 you answered a question from Donald about share buybacks. However, the screener you provided a link for was apparently for US stocks only, and required a monthly subscription.
I am interested in specific buybacks for a limited amount of Canadian companies. I can of course see in announcements that an NCIB has been approved and such, but is there any way to know whether or not they actually are buying back stocks? Must I wait for a quarterly or annual report to find this out after the fact, or is there somewhere I can go to see purchases?
I do know that the amount of stock they have would be reduced, but wonder if the actual share cancellation happens at the buyback, or at their leisure sometime later?

Thanks PK

Q: With growth and upside being the case for buying stocks with no earnings and having a lot of them losing 80% in value over buying a stock with good earnings and less growth, is it the same story now for investors to buy the growth stocks that they may be down 80% and hope that the stock can come back when the market gets overpriced again, or lower your greed and be happy with a 10% yearly return.
Thanks again

Q: Hello 5i Research Team
I read today that the BOA team survey team said that we have witnessed the full capitulation In the market.Please provide me with your thoughts.
Thank you for your guidance.