Investment Q&A

Q: I was put onto Garth Turner's bog "Greater Fool" and found his views interesting. For those who don't know, Garth Turner predicts a U.S. style economic crash in Canada based on the fact that Canadian's today save very little and have an larger appetite for debt. He reports that as a population, Canadians are second only to Greece in the rate we are increasing our debt and that Canadians as a whole now carry over 1.82 Trillion in debt; an amount that eclipses the countries GDP. My question is this, if Garth is right and we are on the brink of another financial collapse, what sectors/ stocks would be most likely to be 'safe' or benefit? What stocks do you recommend in this environment? I would appreciate your view and insight into Mr. Turner's positions.

Thanks in advance.

DON

Q: Hi Peter and team

I was thinking of purchasing Home Capital after checking it out carefully. However I notice in today's Globe that there has been insider selling to the tune of over 48,000 shares. Do you think this is a cause for concern?

Many thanks, as always.

Joanne

Q: Hello Peter & Co

I’m paraphrasing here a synopsis of a couple of articles presented by Christine Hughes of Otterwood Capital. In 2007, Christine had forewarned her clients about the impending onset of the last financial crisis; and right she was.

“Since the 2nd half of 2014, coincidental with the collapse of oil prices, the US$ index started to breakout; and after a multi-week sideways consolidation, it has resumed its seemingly vertical ascent thanks to the release of the Eurozone QE plan.
Furthermore, the Bank of International Settlements had reported earlier that US denominated cross-border debt had reached $9 trillion ($7 trillion of which was non-US resident); many of these countries, who do not have a steady revenue stream denominated in US$, will now have to buy more US$ to make interest payments and pay back their debt. This demand drives the US$ further up.
What would add fuel to the fire would be a consistently strong US job market indicating a good economy. If and when the US raises interest rates, it will breathe fresh air into the already long-dollar trade.
It is impossible to tell ahead of time when the inevitable bust begins but begin it will; we are keeping our eyes open for any signs of stress in the system. For now, things are calm”.

What could a retail investor do to preserve the gains made so far in this 6-year old bull market?
Do you agree with this analysis? If you agree, what would you do?
Thanks as always
Antoine

Q: Any comments on the latest news about the insider trading for AYA?

http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/probe-of-trading-in-amaya-includes-dealings-with-adviser/article23346289/

Q: You have often mentioned that you feel holding gold is good "insurance". Having said that, should one still consider it as part of the materials portion of a portfolio or does it tend to stand in a class by itself. I already own CHEM.UN and G and wanted to add SJ. That would make me a little overweight in that sector but I find it hard to see SJ as comparable to G.

Thanks for the invaluable insight.

Paul F.

Q: What do you think of the news of a contract signed today? Do you think this will ignite revenue? With the launch projected in Q2 of 2015, is it a good time to buy? (I'm thinking 1% of my portfolio)

Q: Looking at adding to this VS taking a new position in keg.un. Do you have a preference as both in very different sectors of the hospitality industry?

Q: Boyd has been moving steadily downwards recently. Are you aware of any particular reason? Thanks!

Q: your thoughts

Q: Good morning,

In the last few days BIP.un has been down. There is no news. Is there an explanation?
Thanks

Paul

Q: Hi 5i - I have about 25% of my portfolio in Energy (in SGY, ERF, BTE, BNP and LEG, TBE - all of which are slightly underwater with the drop in oil) - Im looking at adding CPG at $29.00 - is this a good idea long term? Thanks, Neil

Q: Hello Peter & team

CDV reports on Monday. Can you please provide expectations and what effect the metrics may have on stock price moving forward?

Thanks for all you do

Gord

Q: I placed an order for 72.50 and it was hit. Seems to be dropping like a stone at the minute.

Can you tell me the reason
Thanks

Q: Could you please comment on the recent quarterly reports of FRC/ESN? What are the payout ratios, safety of the dividend? Which one do you prefer and/or would you hold/buy both for a long term holder? Thanks for your service

Q: Just checking if you can now comment on Sprott, I've held some for 6 months and am considering adding.
Thanks

Q: hello 5i...do you feel the current delay in reporting y-e results for AQN has to do with the CRA proposal to review tax credits for previous years?

Thanks

Q: Is it possible that the companies that you cover you could state what sector they belong too?

Thanks
Dolores

Q: Hi Peter and team, I have read answers to members, and you have good things to say about Evertz. How is it possible that the stock price has drop by about 10% in matters of 2 or 3 days. Is there something wrong about Evertz that investors do not know about? Thanks, Gervais

Q: Hello Peter & Co,
I have attempted to send a letter on 2 occasions but was not able to do so; no confirmation was received and a blank screen re-appeared as if I had to re-write the letter.
I'm wondering why.
Thanks,
Antoine

Q: What's with AQN,seems a little over reaction to a delay in quarterly report.