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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: I am a retired, conservative, dividend-income investor that is, for the most part, fully invested and normally employ a buy-and-hold style. I trim-and-add around my target position allocations.

I normally don't "market time", but am aware of the market decline predicted post-inauguration and "reversion to the mean" with stocks who get too far ahead of themselves. With that as the backdrop, is it reasonable for the following:

1. ABT = can I pick it up for < $6.40?
2. NWC = can I pick it up for < $27.50?
3. SLF = can I pick it up for < sub-$50.00?
4. WSP = can I add to it for < $43.00?

I know this sounds like market timing, but I've only got a small amount of cash and I'm willing to wait for one or more of these to come back to me. Thanks for your help...Steve
Read Answer Asked by Stephen on January 16, 2017
Q: I am underweight Healthcare, but do own RX - GILD - GUD - SIA. Both RX and GILD are down double digits. GILD I gather from previous questions is probably worth holding on to. But what about RX ...buy more, sell or hold? If sell, what would your "buy" suggestions be to beef up my healthcare weighting?

Thanks again.
Read Answer Asked by Donald on January 16, 2017
Q: Topic: interest rates and income stocks, particularly utilities in a "stagflation" scenario.

I understand your message regarding higher interest rates reducing the appeal of income stocks in a growing economy.

But what about stagflation? If interest rates spike, but the economy stagnates (some us remember the 70's) .... would stocks like the utilities still likely "stagnate" or drop as well?

Would anything do well in a stagflation scenario?

Thanks for any information or guidance you can provide.
Read Answer Asked by Donald on January 16, 2017
Q: Hi Fellow Investors!
For those that haven't read the recent 5i blog on averaging down yet I would like to recommend reading it. It is an important topic and well written.
I would just add that averaging down beyond a normal portfolio weighting can put a big dent in one's longterm returns if things go wrong. In my experience you need a very high degree of conviction to average down and by definition such opportunities will only present themselves very rarely. Most investors cpuld do well to avoid the practice entirely, IMHO.
Cheers
John
Read Answer Asked by john on January 16, 2017
Q: I recently purchased 50 shares at $650, with a multi-year horizon, following a thorough article about FFH being a top-ranked stock when it comes to long-term value AND growth. It has recently been on a steady decline, down by about 5%. Where could I find a relevant explanation for why this is happening and what is your outlook for FFH moving forward ?
Read Answer Asked by Paul on January 13, 2017
Q: I have been considering a purchase of AD, and am not sure if today's drop makes it more attractive or less so - are you aware of any news/actions that would result in the 4%+ price decrease? I am looking at AD more for income than growth, but obviously capital preservation is important. Would you buy AD today, why (or why not) and could you comment on the dividend sustainability.
Thank-you
Read Answer Asked by grant on January 13, 2017
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