Investment Q&A

Q: Do you have any advice for buying stocks one likes during a sell off? I tend to divide up my cash into about five amounts and buy gradually after the first bounce following a big sell off, like we had yesterday on the S&P 500. I also look at futures and European exchanges to see what might be coming at us next. Some Portfolio managers recommend buying when the ten day moving average of the index turns up. However they then go on to say nobody can predict a market bottom. I also read that stocks which bounce most strongly are the ones to go for as they are the companies everyone wants to own. Any insight welcome.

Q: Can you explain how an investor can get a negative yield on a bond? For instance German 10 year bonds have a negative yield. Does that mean that there is a premium paid on the price say 102.00 and investor receives 100.00 at maturity. Does the investor receive semi-annual coupons like other bonds? Are the coupons more than 0.00 or are they negative also? Thank you.

Q: In your experience, please name a few analysts/brokerages whom you would consider fairly reliable in terms of stock recommendations, ratings, price targets, etc. in both Canada and the US.

Thanks.

Q: Hello 5i
Going fishing here ... You've provided a coverage drop list ... will we soon see a coverage update containing additions in the near future, perhaps in response to this email?

Curious,
Mike

Q: What’s is your opinion of a SPAC ?
Thanks
Rick

Q: Hi, Does the market price movement following the announcement of secondary issues, influence the determination of offering price, or companies usually base it on the closing price at the time of the NR ? LSPD closed at $47.75 before the issue was announced and has dropped to $40 in 2 days. The issue is still open at many brokerages. Any comments/insight, please. Thanks

Q: Am I likely to pay more for subscribing to new issue or should I wait and buy on the open market after the price is announced

Q: #1. Are there any key indicators that would suggest a recession ?
#2. Would it be a good idea for an investor to get out of the market and buy back in later, thinking there will be a recession soon and a downward stock market.

Q: I have been rebalancing my portfolio over the past six months, reducing financials and energy and increasing utilities, telecoms, and US technologies ( all in companies you have been positive towards). I remain overweight financials, with Canadian Banks and insurers. I do have a very long term horizon, say 25 years, so if history and my nerve holds, my wife and I should have the desired dividend stream and a decent shot a capital gains over time. However, after reading yet another “we’re all gonna die” column from Dave Rosenberg, it made me wonder if I shouldn’t continue my shift and sell down more financials and increase in sectors with strong dividends that might better weather the storms that may or may not be imminent. What are your thoughts?
As always, I value your opinions. Thank. You.

Q: In regard to high interest saving guarantee(previous question ) ,how much one could have to secure comparing with premium money marked fund and the difference on return?
Thank you.
Ebrahim

Q: Is there some sort of Norbert's Gambit for converting Cdn$ to Euro's. Tx

Q: Hi Peter,
Is a reverse mortgage a good idea for someone who is 65 years old+, and what should one know before he/she goes ahead with one.
Thanks!

Q: I read with great concern in this weekend's National Post, David Rosenberg's article entitled "10 Reasons to take risk off the table right now". He makes ten legitimate reasons to do so. I would appreciate 5I's opinion of the article and his supporting logic. My high risk equities are WEF, NFI, TSGI, MX, COV and VET.
Carl.

Q: WHAT IS PRO AND CONS OF HAVING CASH IN PREMIUM MONY FUND OF TD OR HIGH SAVING ACCOUNT OF TD AND HOE EACH INSURED ?
THANK YOU
EBRAHIM

Q: My question is about US/Cdn exchange rates. If I go to my bank as I understand it, I pay 2.5% on top of the exchange rate when both buying or selling U.S. dollars (I do pay less than 2.5% on my online brokerage account, though). This 2.5% fee results in a different final exchange rate depending on whether I am buying or selling U.S. dollars.

So my first question is, in an etf like VGG which is denominated in Cdn dollars but invests in U.S equities, when they apply the exchange rate to show the unit value in CDN does it include this 2.5% fee? Or is this 2.5% fee not applied?

My next question is related to the first one. You recently answered a question describing an (apparently) cheaper way to convert dollars between US and Can. As I understood it, if you want to convert USD to CDN, buy a non-volatile Canadian stock that trades on a US exchange with your USD, then phone your online broker and ask them to "journal" the stock to the Canadian exchange, and once they do that you can sell it for CDN. So the question is, does this avoid the 2.5% fee? (I would think it must, otherwise why not just go to the bank and change your money.)

Thank you.

Q: David Rosenberg is once again talking of a doomsday secenario. Whether he is right or wrong, I have a feeling a recession is due and it is all about timing. I know you have previously fielded questions regarding taking a defensive stance for protection against a recession but I am wondering where long trem bonds fit into this story. Is an investment in Long Term Bonds a good strategy in this case and if so, how does one make such an investment and what percentage of a balanced portfolio would you dedicate to long term bonds?

Q: How do you select th 70 companied that you cover?

Q: I hold the above in my TFSA. I treat my TFSA as part of a total portfolio so although each is about 20% of my TFSA, my overall weight for each is 3% in my total portfolio. Needless to say my TFSA has not performed well this year. Each of these companies (Except for ZQQ) seems to have lost significant value this past year. 5i seems to still like these names but I am starting to think that they are going the same path as some previous darlings of 5i. So my question is: with a 5 year outlook, should I continue to be patient or sell any of these and move on.
By the way, I did ask a question last week and voiced my opinion on some comments....never got a reply??

Q: What is your opinion on shorting the tsx

Q: Hi Peter

You recently wrote an article about investing versus gambling which neatly explained why investing was not gambling. I had no issue with your explanation, but must admit that lately I am concerned that investing is starting to feel more and more like gambling. You just do not know what Trump is going to Tweet or do next. China’s reactions are another issue. I am not confident that Trump fully understands what he is doing. Case in point , his remarks that China is adding all kings of money into the US Treasury due to the tariffs he is imposing. Look at the reactions to his plan to impose further tariffs on China and subsequent devaluation of the Chinese currency. You just do not know what he will do next. But it does look like China is digging in for along term battle. Your comments please. Uncertainty is extremely high now. So why not sell most equity investments and move to the sidelines?