Q: Could you please comment on the latest Q3 earnings for the above, also balance sheet and forward outlook. Thanks
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: from my week end "musings"The Reality of Long Periods of Underperformance
The following is from Meb Faber. I felt it worth sharing with you. Please feel free to share it with your clients.
One of the biggest challenges of investing is long periods of underperformance, or outright negative performance and losses. Cliff Asness has a fun piece out on his blog where he talks about 5 year periods in stocks, bonds, and commodities and basically how anything can happen.
Unfortunately for investors there are only two states – all-time highs in your portfolio and drawdowns. Drawdowns for those unfamiliar are simply the peak to trough loss you are experiencing in an investment. So if you bought a stock at 100, and it declines to 75 you are in a 25% drawdown. If it then rises to 110 your drawdown is then 0 (all time high).
One challenge for investors is how much time they spend in drawdowns. It is emotionally challenging largely since they anchor to the high value in their portfolio. If your account hit $100,000 last month up from $20k ten years ago, likely you think of your wealth in terms of the recent value and not the original $20k. If it then declines to $80k, many think in terms of losing $20k rather than the long term gain.
I thought it would be interesting to look at a few asset classes and ask how long they spend in each outcome – either all-time highs or in a drawdown. Below is a chart of a basic 60/40 portfolio’s drawdown since 1972, REAL RETURNS. Notice how brutal the high inflation 1970s were to the portfolio:he investor only spends about 22% of the time at new highs, and the other 78% in some form of drawdown. A few values for common asset classes below….
• US Stocks 17% new highs, 73% in some form of drawdown
• Foreign Stocks 12% new highs, 88% in some form of drawdown
• Bonds 16% new highs, 84% in some form of drawdown
• REITs 16% new highs, 84% in some form of drawdown
• Commodities 9% new highs, 91% in some form of drawdown
• Gold 4% new highs, 91% in some form of drawdown
• 60/40 22% new highs, 91% in some form of drawdown
Meb concludes, “So if you’re going to be an investor, get used to being a loser!”
print ONY if you think worthwhile info for members
CDJ
The following is from Meb Faber. I felt it worth sharing with you. Please feel free to share it with your clients.
One of the biggest challenges of investing is long periods of underperformance, or outright negative performance and losses. Cliff Asness has a fun piece out on his blog where he talks about 5 year periods in stocks, bonds, and commodities and basically how anything can happen.
Unfortunately for investors there are only two states – all-time highs in your portfolio and drawdowns. Drawdowns for those unfamiliar are simply the peak to trough loss you are experiencing in an investment. So if you bought a stock at 100, and it declines to 75 you are in a 25% drawdown. If it then rises to 110 your drawdown is then 0 (all time high).
One challenge for investors is how much time they spend in drawdowns. It is emotionally challenging largely since they anchor to the high value in their portfolio. If your account hit $100,000 last month up from $20k ten years ago, likely you think of your wealth in terms of the recent value and not the original $20k. If it then declines to $80k, many think in terms of losing $20k rather than the long term gain.
I thought it would be interesting to look at a few asset classes and ask how long they spend in each outcome – either all-time highs or in a drawdown. Below is a chart of a basic 60/40 portfolio’s drawdown since 1972, REAL RETURNS. Notice how brutal the high inflation 1970s were to the portfolio:he investor only spends about 22% of the time at new highs, and the other 78% in some form of drawdown. A few values for common asset classes below….
• US Stocks 17% new highs, 73% in some form of drawdown
• Foreign Stocks 12% new highs, 88% in some form of drawdown
• Bonds 16% new highs, 84% in some form of drawdown
• REITs 16% new highs, 84% in some form of drawdown
• Commodities 9% new highs, 91% in some form of drawdown
• Gold 4% new highs, 91% in some form of drawdown
• 60/40 22% new highs, 91% in some form of drawdown
Meb concludes, “So if you’re going to be an investor, get used to being a loser!”
print ONY if you think worthwhile info for members
CDJ
Q: Please provide comments on Hanesbrands. Share price has pulled back in the last few days. I believe due to lower Q4 and FY expectations. Is the recent price drop over done. Currently HBI represents 3% of my portfolio. Should I consider this a buying opportunity or just hold. Are there other Consumer Products I should consider?
I like the new features of the website. At first I found the larger font size and line spacing difficult. Changing the zoom setting (from 100% to 80%) for the browser tab has improved it for me.
Thank you
Stephen
I like the new features of the website. At first I found the larger font size and line spacing difficult. Changing the zoom setting (from 100% to 80%) for the browser tab has improved it for me.
Thank you
Stephen
Q: Is there a website that can give me stock charts longer than 10 years. 50 years ......
Thank you
Thank you
Q: At one time the was an "up tick" rule regarding shortselling. Could you review that plus the effect of its removal on shorting stocks.
Thank You
Clarence
Thank You
Clarence
Q: Something just occurred to me: if you are holding a stock that has dropped significantly, and you plan to keep holding it for the dividend and future growth (ENB in my case), does it make sense to sell it to record the loss for tax purposes, and than re-buy it? Thank you.
Q: Hi, Could you please post the street estimates for Boyd Group. Thanks
Q: I just topped up ATD.B and TOY. Do you think today's 6% drop in SJ is a buying opportunity? cheers
Q: Do you have any update on Poet Technologies? I've heard that they may be getting some grant money from the government of India for a plant in that country (?)
Has their balance sheet improved over the last year? Is there enough insider ownership to give you any kind of level of comfort?
Has their balance sheet improved over the last year? Is there enough insider ownership to give you any kind of level of comfort?
Q: Hi 5I- We are a couple of RRIF collecting seniors with 63% equities, 20% in your income portfolio minus AGU, CPD ,CVD and XHY, and 17% cash. Please comment on our plan to take some profits from our equities to add to our cash and invest half of cash in the missing parts of your income portfolio and wait for a downturn in the market to deploy the rest of the cash to your income model. Would you suggest another option? or add to some of our downers instead, eg. loblaws, enbridge, kwh.un, disney? Appreciate your advice and service, thanks.
Q: I am looking to increase my allocation to energy and am looking for growing dividends but total return is most important. Between SU and ALA which would you buy today or maybe an allocation to both?
Thanks
Thanks
Q: What are thoughts on Sleep Country, given the recent pull back would you consider it a buy? (If anything it has a cool stock symbol!).
Q: I bought Fairfax India Holdings ( FFXDF ) in my US $ portion of my RRSP quite some time ago. it has progressed well until last week. Your thoughts going forward? Thanks....
Q: I have held IPL for years but need some growth as well as income (also hold PPL). Is there anything you like better and would trade IPL for, in the areas of pipeline, utility or renewable energy?? Thanks Jim
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Photon Control Inc. (PHO)
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Kinaxis Inc. (KXS)
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Shopify Inc. Class A Subordinate Voting Shares (SHOP)
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Savaria Corporation (SIS)
Q: Can you give me 2 companies in each of the growth and balanced portfolios in your opinion with the best upward momentum going forward.
Q: In your recent response to Margita you recommended holding Enbridge for the dividend. As a retiree I purchased 1k shares of ENB not only for the dividend income but also the projected dividend growth of 10-12%. What are your thoughts on the later? Is there anything in the latest financials or management comments (or lack thereof) that would cause you to re-consider ENB for the balanced portfolio.
Many thanks
Mike
Many thanks
Mike
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Cognizant Technology Solutions Corporation (CTSH)
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Meta Platforms Inc. (META)
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Builders FirstSource Inc. (BLDR)
Q: Please rank them on the growth?
Q: Hello, I see that AT&T has not been doing very well, actually down by about 22% since the beginning of the year. How do you explain that poor performance? Should we switch for another name in the same sector? Regards, Gervais
Q: Hi team,
New website looks great; cleaner and simpler to use. I own two of the FAANG stocks; FB and GOOG. I am overweight FB, but I don’t always trim my winners unless I see heightened risk going forward. Anyway, all FAANG stocks that reported earnings in past week or so, plus MSFT, crushed earnings. All FAANG and MSFT got some nice price gains and held those gains. FB did not and they had a blow-out quarter. It seems every quarter Zuckerberg warns of upcoming big spending on the next big issue. One quarter it was video. This quarter it is the need for much tighter security on ads with all the fuss about fake news and the Russians trying to influence the election. FB and GOOG have been dragged before Congressional committees, although FB seems to be getting most of the heat. FB has said it will hire another 10,000 employees to vet ads and stories for authenticity.
What is your view of FB going forward from here? What is the likelihood that Congress would come down hard on FB (and GOOG) and maybe regulate parts of their businesses? Or will Zuckerberg be able to deflect all this heat with the measures he is taking and FB’s earnings will power ahead without missing a beat?
thanks again,
dave
New website looks great; cleaner and simpler to use. I own two of the FAANG stocks; FB and GOOG. I am overweight FB, but I don’t always trim my winners unless I see heightened risk going forward. Anyway, all FAANG stocks that reported earnings in past week or so, plus MSFT, crushed earnings. All FAANG and MSFT got some nice price gains and held those gains. FB did not and they had a blow-out quarter. It seems every quarter Zuckerberg warns of upcoming big spending on the next big issue. One quarter it was video. This quarter it is the need for much tighter security on ads with all the fuss about fake news and the Russians trying to influence the election. FB and GOOG have been dragged before Congressional committees, although FB seems to be getting most of the heat. FB has said it will hire another 10,000 employees to vet ads and stories for authenticity.
What is your view of FB going forward from here? What is the likelihood that Congress would come down hard on FB (and GOOG) and maybe regulate parts of their businesses? Or will Zuckerberg be able to deflect all this heat with the measures he is taking and FB’s earnings will power ahead without missing a beat?
thanks again,
dave
Q: Hi 5i team,
for an RRSP account, I am looking to deploy cash and purchase one or two stocks per sector. Presently, I am well diversified by both sectors and geography.
At this time, what would be your favorite stocks based on valuation and potential for dividend growth for each sector?
In my TFSA and RRSP, I already own the following stocks you like: ENB, CXI, GOOGL, GUD, OTEX, PHO, SIS, SLF, TD, WCP and ZCL.
Thanks,
Dan
for an RRSP account, I am looking to deploy cash and purchase one or two stocks per sector. Presently, I am well diversified by both sectors and geography.
At this time, what would be your favorite stocks based on valuation and potential for dividend growth for each sector?
In my TFSA and RRSP, I already own the following stocks you like: ENB, CXI, GOOGL, GUD, OTEX, PHO, SIS, SLF, TD, WCP and ZCL.
Thanks,
Dan