5 from 5i: 2019 Third Quarter Review

Chris White Oct 04, 2019

Market View

Investors await a key US payroll data this week. US’s September unemployment falls to 3.5%, a 50-year low. The US dollar and oil remained unchanged. The Canadian dollar was 75.15 cents. U.S. S&P500 was down 1.0% this week and TSX was down 1.5%.

This week was noisy for some sectors and relatively quiet for others. Energy slid the most by 6.0%, followed by Financials and Healthcare, both of which declined 3.1%, respectively. Industrials slipped by 2.1%. Consumer Staples and Technology rose by 0.8%, respectively. Flutter Entertainment agreed to buy the Stars Group Inc in a $6 billion share deal to create the world’s largest online betting and gambling company by revenue. TSGI shares soared 50% after the deal was announced. The most heavily traded shares by volume were Coro Mining, Aurora Cannabis, and Western Forest Products.

5 from 5i

Here are five reads we found interesting last week:

-2019 Third Quarter Review

-What did the Uber IPO teach us?

-Private Assets and their growing popularity

-No-commission trades a reality?

-Questions to ask before starting a new position

 

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Disclosure: The author does not hold positions in any stocks or funds mentioned.

1 comment

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D
Dave
Oct 6, 2019
On the three questions, yes, the third question is critical. How much am I willing to lose on every investment? I am still surprised by the number of questions in the Q&A asking for advice when a stock is down 50% or 75% or the company has gone bankrupt and has been delisted. I understand that 5i has many new investors, but you must have a discipline about your investments and cut your losses at a pre-set threshold. My first rule is capital preservation, so I cut my losses early. I can always re-enter a position if conditions change. If you can’t cut your losses, then you should not be in individual stocks at all but just use ETFs which have professional managers and to my knowledge no ETF has ever gone to zero value. If it has, that manager is no longer around that’s for sure.
I hope I am not too blunt here for new investors, but you really have to be ruthless with losing positions, if you are managing your own portfolio.
Cheers
Dave
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