Investment Q&A

Q: Hello 5i experts
Given that a Trump victory is looking more and more likely, can you give me some advice on what effect it will have on the stock market (both short and longer term) and what evasive action retired investors like us should be taking.
Great service...couldn't be without it. Thanks as always
Joanne

Q: Currently gold is about 2% of my holdings. Half is TMAC, the rest split between Osisko and Roxgold. The miners are both in advanced pre-production.

I am looking to go overweight gold for the next 4-5 months. Possibly as high as 12-15%. I think seasonality may get a boost from India, whose markets and monsoon have been very good this year. And I want TTT (Trump Temper Tantrum)insurance in place well before Nov 8.

Can you put fwd a short list of producers and royalties that you think would do best in a rising price environment in that time frame. (Please note, ROX's asset is in Burkina Faso, where most of SMF's are.)

Thank You for this and all your other fine work,

Tim

Q: 5i

Appreciate your comments in regard to the next USA President. What do you beleive the markets in general will do and what will happen with commodities, oil, gas and gold if Hillary gets elected or
if Trump gets elected. Some pundants Are saying gold will soar if Trump wins and markets will drop 20%. If Hillary wins then markets will be volatile as people do not trust the establishment.

Wayne

Q: Good morning...In the world of a Trump President and his dislike of the NAFTA and potential dismantling of that agreement..What names /sectors would suffer the most...Would you see a major readjustment to your portfolio in preparation of any action? If so, how far in advance would you adjust?

Thanks

Q: I hold many quality dividend paying stocks which are reaching new highs in the face of a solid wall of risky economic scenarios including a possible real estate bubble, the impact from Brexit and possible Trump victory, probably inflated commodity stock prices, an uncertain energy outlook and so on. Does any of this suggest taking profits and retreating to the sidelines? A recent comment by David Rosenberg posed equity values appear to be whistling by the graveyard. Your thoughts?

Q: I have about $60,000 to invest in your balanced portfolio. Invest now or wait until after the US election? Do I buy at equal weight for each company or at the percentage you now have?
Thank you
Jean

Q: How would you compare VSN and Gei going forward and dividends sustainability

Q: Donald Trump is likely becoming a GPO nominee for the coming US Presidential election. How should an investor prepare for the coming market uncertainty ? Presently I hold 20% of my portfolio in cash and am contemplating to increase my cash holding to 50%. Please advise. Thank you. Bill

Q: I go into detail because this Question concerns a larger issue related to cash levels investors should allocate to Reserves. Reserve to take advantage of opportunities in volatile times. I will normally be brief when my words need no explanation , background or context.

National Oilwell Varco (NOV.us), ONE company is 8% of my portfolio. The sector represented 20% before I reduced it to 11%. NOV has lost more than half its value (and 70% of my cost). The over-allocation to NOV was the idea of a former broker . I too am at fault: I compounded the error by not rebalancing sooner. I reduced sector allocation but failed to reduce NOV. And now I try to avert my eyes when I see the loss. Problems get worse when ignored.

I arrive now at the 5i doorstep, to obtain objective comment:
In your opinion , since NOV has fallen off a cliff , does it now represent value such that one should just hold? The dividend is decent (if it is safe ; and I can't use the tax loss)

Context: Many financial commentators advise that investors keep high cash reserves during current volatility so that you’d then be in position to pick up great values when markets over-react on the downside. The advice assumes stocks will continue the recent (and rapid) descent . I had thought major markets in the US, Europe, UK and Canada had now dropped enough such that a high cash reserve was now not crucial. Several experts think otherwise: I am referring here to the opinions of successful , real-world investors. I disregard those drama queens who scream dire warnings, no matter the facts, prospects and real business conditions. I also disregard the idiocy of conmen and bullies ---the O’Leary’s of the world--- and others like the affable but hyper Jim Cramers of the Americas. I disregard the opinions of Dr Marc Faber and others whose purpose seems to be to sell expensive letters that predict the end of the world. Their performance is not unlike results you'd get from a random coin toss [CXO Advisory and other sources have documented the poor track records of many gurus..

My question about freeing up cash (by selling NOV in my case) thus arose after I thought through the concerns well reasoned and articulated by thoughtful , successful advisors.

Notwithstanding recent market corrections, the wiser commentators continue to emphasize the importance of maintaining large cash reserves to take advantage of opportunities in these volatile times if markets descend even further. Unlike the sensationalists, the thoughtful advisors make sense . I have therefore taken seriously their views on ensuring one should today keep cash reserves higher than usual

Do you think I should sell/reduce NOV to add to cash reserves ? Or do you think NOV is now excellent value and is not now the best candidate to jettison if the purpose is just to add to cash reserve?

AO:ls
Champlain NY cc Greensboro NC

Q: Hi,

Care to comment on RBC's downgrade of BIN? One of their main key points was BIN's significant footprint in energy producing locales and they feel that BIN could experience pricing and volume pressures as crude prices impact regional GDP. In your last response to a question on BIN you said,"We added it to the portfolios largely because of its leverage to lower oil prices, its US revenue (60%) and its largely recession-proof business." Do you think RBC's concerns about lower crude affecting pricing trump the benefits of cheaper transport costs? It would appear the market does, BIN down 5% today after not much volatility lately.

thanks.

Q: I wish to purchase a dividend paying company, where there is some chance for growth and am thinking about one of the rails, (although perhaps a U.S. rail company but don't know any) or a pipeline company. Am I correct in thinking that the rails have a pricing power authority that trumps pipelines, pipelines being more closely tied to commodity price. Thank You

Q: Please compare the risk of CVD vs CBO. I note that CVD has a lower duration so I assume it would hold its value better should interest rates increase. Please comment on the duration and other risk factors. Thank you.