Investment Q&A

Q: I know you are not a fan of market timing. However, with all the action coming from the Mueller investigation of Trump I can't help but digest and interpret the news as a tightening of the noose around Trumps neck. I've gone to 20% cash and might not be done yet. I've committed to sitting here until Mueller resolves one way or the other.

My question is how have markets reacted during previous impeachments (eg. Nixon, Clinton)? Obviously negatively, but to what degree and for how long? Would international equities be less effected?

Best.

Q: I realize 5i refers to this type of stuff as noise but hopefully you can elaborate a bit about these comments made in the media. Seeking Alpha reported that Amazon might be getting their own type of pay system which will affect PayPal and Square and notice these two stocks dropped off more than the norm on Friday.
MU - Micron - I read the same article as another member about Micron was downgraded with a low target price. The following day, Seeking Alpha posted pictures of Micron's headquarters stating that at this price Micron was a definite buy and they had a good article on all of the great things about it and a high target price I believe of $75.00. Who do you believe?
A regular analyst on BNN - David Price was stating how he felt the market would not hold the February lows and was showing some charts and saying when it got down around the old lows the automated trading would kick in and the market is going to go quite a bit lower. He sees it as a rough couple of months and more or less said that it would be 2019 before things come along. David Price back when oil got down to the $40 mark, some time ago he said oil would be going to $20. He was wrong. Let us hope he is wrong again. Your thoughts.

Q: In tracking these four auto parts companies, all seem to have been doing very well in this volatile market. Even ACQ enjoyed a ~5% bump today! Wondering if the reason is somehow related to Trump's tariff controversy. Thanks.

Q: Which FAANG stock(s) would be most attractive today for long-term growth? I plan to hold longer than Trump will be President.

Q: it is mind boggling how one man can do so much devastation to a world economy. is there one or two stocks you can recommend to protect me from this lunacy. I hope some sensibility comes out of this mess. thanks again bill

Q: Hello Team,
Could you comment on the recent pullback in Amazon and do you feel it is overdone?
Thanks,
Barry

Q: I am not understanding why NFLX would be caught up in the tech slide. It's more of a media than a tech stock, no? In any case, these large cap techs with high valuations seem to be suffering disproportionately. I am down considerably from the highs but still up nicely on both of these and am seriously considering getting out now. Do you think that would be a mistake?

Q: In your answer to Claudio's question about Nvidia you state that there is a major tech reversal going on right now. What does that mean?

Q: Dow up 700... Tsx flat..the world has stopped investing in Canada leaving it up to us to finance our companies..
Do we not have any profitable companies or assets worth investing in from a global prospective?. Even our own investors seem to be shunning any new investment in the stock market...When was the last time the countries stock exchanges were diverging as they are currently and what do you see are the fundamental problems?

Q: Financial stocks of every type are getting hammered again today, as they were yesterday. Everything from banks to insurance companies to credit cards and payment processors in both the US and Canada are down between 5-10% in the last two days. Can you draw a line for me on how the possibility of trade disruption between the US and China could account for this? Is Bank of America really worth 9% less today than Wednesday because of Trump's trade tariffs or this just mindless "sell everything!" panic?

Q: There were a lot of people calling into Jim Kramer (Mad Money) about this market drop - as it is difficult to understand him, he was saying don't average done (basically) wait until the market stabilizes, etc. and when the market does, good stocks (i.e. Fang stocks) would be one of the first to lead the market out of this. There was a rate hike and Trump seemed to be going after a trade war with the Chinese which Kramer seemed to be saying was the cause. Two weeks ago Larry Berman predicted there would be a 20% drop within the next 12 months. How do you see this and what are your recommendations? What is a good ETF for Fang stocks? Thank you Dennis

Q: I have a general concern that I would appreciate your assessment regarding both the US and world economies. We have a US stock market that has been rising consistently for some time now. Bond yields are on the rise with increasing concerns about inflation. Now there is a threat of a major trade war as Trump considers placing significant tariffs on Chinese imports. This has been tried in the past (ie 1930) with dire consequences. Sure, US imports of tariffed goods decreased but so did exports as other companies struck back with their own tariffs. And if China, for example, sells less goods to the USA it will buy less raw materials from other countries affecting their economies.. So the risk is a major slow down in world economies. I would expect prices for many products in the US to rise substantially, due to Trump's insular view of how things work with increased pressure on inflation and bond rates. My concern is that all of this could result in a major recession next year. How do you view this situation? I would appreciate your thoughts and analysis. Thanks.

Q: what type of stocks would be less impacted by trade negotiations I would guess gaming stocks and gold? i would appreciate your input thanks

Q: If I wanted to invest in a theme where the real US economy begins to see robust growth from the benefit of the Trump admin's policies that benefit the working class and domestic economic activity, are there any US stocks that you could suggest that may benefit from such a scenario?

Q: Iron ore is a mined and concentrated product. Steel is a manufactured product. While it may be possible to move a steel mill from one country to another or move steel production, you can't move an orebody.
I've only heard Trump's threats to put tarrifs on steel and aluminum. Is there anything in that regarding iron ore? Even if he succeeded in moving steel production to the US, they would still need iron ore, presumably from the Labrador trough, to feed those mills. Any thoughts on this?

Q: Current price $40.57(5yr low),6.62% yield(mainly due to drop in price,partly div.growth)& high $66b debt.A rising interest rate environment,which will be further aggravated if Trump impose tariffs.New York Fed Governor W Dudley stated"raising trade barriers would risk setting off a trade war,which could damage economic growth prospects around the world".Recently filed for potential mixed shelf offering.Will be dilutive & negative if sell shares @ such low price(remember CPG which keeps on issuing shares).However it does have $10b non core assets,of which $3/4b are to be sold In 2018.Have not heard of any sale,maybe not getting the desired price. I have 1/2 position @ $49,so add,hold or sell.Txs for u usual great services & views.

Q: Is there anything you can forecast with regards to Trump's policies regarding tariffs and protectionsm that can negatively effect Stella Jones' operations and eps expectations?

Thanks again for your help.

John

Q: With President Trump wanting tariffs on Steel & Aluminum this will increase cost of goods in the USA much like tariffs on Lumber increases the cost of building housing in the USA. Would this lead to a lower US Dollar and benefit he price of Gold ? What golds do you recommend ? RAK

Q: The latest Liberal budget seems determined to put the nail in the coffin for Canada's economic future.
Some points from the Financial Post: “Declining business investment remains a critical concern for Canada, which is a signal that entrepreneurs, investors and business owners don’t see the country as a hospitable place to do business. From the end of 2014 to the latest quarter with data, the level of (non-residential) business investment in the country declined by 19 per cent, after accounting for inflation. Among a group of 17 industrialized countries, Canada now has the second-lowest level of business investment as a share of GDP.”

Your thoughts?
What is the mood of investors and business owners that you have spoken with?

http://business.financialpost.com/opinion/morneau-delivers-a-budget-in-deep-denial-about-the-dangerous-territory-were-in

Q: Interested in your thoughts on ARLP. The company is in a sector - coal that nobody other than Trump seems to love. It pays a solid dividend which is well covered by its cash flow, and it paid a dividend through the Obama years, despite some of the regulations brought in at that time. Do you see a place for this company in a well diversified portfolio with some emphasis on safety of capital. Thanks