skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: For an investor with a higher risk tolerance who is always fully invested, do you think it is possible to profit on a risk adjusted basis from buying into a market dip on margin (assuming a "reasonable" margin rate of <6%)?

Given your experience, what would be reasonable parameters of a system to do this? I am thinking something along the lines of: If the market (e.g. index tracking ETF(s)) drops 10%, deploy 10% margin, drops another 10% deploy another 10% margin, ... subsequently deleveraging by a similar scheme on the way back up. Are there other schemes in the same vein you are aware of which are profitable?

Would it instead make more sense to wait for the market trend to reverse before deploying margin? For example, say you sit idly while the market drops 30%. Then you wait for the trend to reverse (e.g. Spot price > 200 SMA) and deploy margin, perhaps in 20% increments monthly as the trend continues eventually delevaraging at a new market peak.

Thanks as always.
Read Answer Asked by Andrew on August 11, 2017
Q: Not a question, just two comments:

1) Two days ago I asked a question & expressed a certain level of discomfort with the slide in KXS, to which you "poured oil on the waters". In answer to a question from another subscriber, also about KXS, you reminded us to keep a longer-term focus, be in for the long haul not the short term. Thank you!

2) BMO Capital Markets & NA have both today issued reports with "Outperform" ratings for KXS, further reminder to keep a view of the long term and not panic. I do wonder, though, at the discrepancy in these two reports' price targets -- $82 & $100 -- that's a big spread!

Thanks for helping keeping us on the investment straight-and-narrow. LM.
Read Answer Asked by Lotar on August 11, 2017
Q: Good Morning team,

If gold were to go up in the near term what would be your top 5 gold or silver companies to hold for short term exposure to this sector?

Thanks,
Rick
Read Answer Asked by rick on August 10, 2017
Q: Hello team,

Is there any site that gives you the short% and its change on Canadian stocks?
The shortsqueez.com only gives the short interest on US stocks.
Thank you!
Read Answer Asked by Saeed on August 10, 2017
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!