Investment Q&A

Q: Hi 5i,
The majority of my portfolio (70% - i.e. everything non-Canadian) is invested in XAW & XUU, which I add my savings to regularly to keep my geographic allocations where I want them.

I will shortly be receiving a sizable (to me) lump sum from the sale of a small business and will be putting most if not all of it into my portfolio. My question is about currency hedging on ETFs like the ones I use. I don't have any hedged investments now. I've read everything I can find on the subject and it seems smarter money, especially with long term investment horizons, stays away from these hedged options.

I know that fact alone probably answers my own question. But, with a sizeable one-time contribution, I cant help wondering if our current 75/76/77 cent dollar might be hovering at its lows, and maybe hedging should be considered? Looking for your opinion on that subject, and also how you feel in general about the two ETFs noted above. Any better suggestions?

Thanks so much!

Q: I am curious about the parameters of "cyclicality" when it comes to different sectors. For example, the chip stocks (including AMAT) are apparently down because of a cyclical decline across them all. In this industry, how long does such a cycle typically run? In comparison, for example, to the commodities cyclicality, which can be many years (I have heard 10-15). Your answer will help me decide whether to take a tax loss on AMAT or hold on for a year or two. Thanks!

Q: Hi Guys,

I just completed my election of Directors for GS. When voting for directors you had two choices: Vote for a director or withhold a vote for the director. To be ridiculous, let’s say that all shareholders, except one, withheld their votes. The one shareholder votes for the director. Would that director be elected to the Board?

This method is used by many Canadian companies. I want to understand how and why they use this method. It really doesn’t seem like shareholders have a voice in selecting directors if the only vote that counts is a vote for a director.

Thanks for the information.
John

Q: Hi

What are your sources or how can we find that a company or stock is shorted.

Thanks.

Q: Earnings 52 Week Low
Yield (%) Price % Diff
Badger Daylighting 6.7 22.37 15.90
CCL Industries 5.3 52.01 5.59
Methanex 8.7 62.30 28.27
I'm looking at buying one of the above companies. Based on today's stock price, I am torn between what is a more useful metric, Earning's Yield (MX) or 52 week low (CCL.B) or a combo approach (BAD) for an entry point. In your view which metric is more relevant for a 5 year investment horizon?

Q: You've recently mentioned the potential effect of activities of money managers on this market, specifically buying and selling to make targets to ensure their best bonus and keeping up with their competitors.

When does this sort of "bonus securing" activity occur-now near the end of the year? Every quarter?

I suppose I'm hoping to know when large institutional buying and selling are at their highest and lowest, over the course of a year.

Cam

Q: Can you clarify what you meant in answer to Lee’s question on “likes” when you said “We have the 'heart' for personal favourite questions, ”$

Q: Does any market research companies in the USA provide similar information about the American market like 5i does for Canada?

Q: This is a market question. Yesterday, markets were up nicely until news of more US tariffs on China came out, then they plunged. But they plunged deeper in Canada than in the US. Would you have a try at explaining why that would be given our valuations are cheaper and US tariffs on China would have no impact on us? It seems every time US markets drop due to China tariff concerns ours go down more. Are we in a bear market in Canada? Morgan Stanley has said the US is now in a bear market and all rallies should be sold because it's going to get worse. Would you advise that here?

Q: Just a general question about the "market". Do you have an idea about the makeup of the investor population? For example what percentage would be small independent amateur DIY investors like my self? I believe sometimes called retail investors? What percent would be big pension, mutual fund or other advisors or say ETF managers, etc?

I am interested to learn if I am mostly up against professional investors.

And if the market is mostly made up of professional investors I find it even more curious how the market seems to behave. All the ups and downs and seeming panic to euphoria don't seem very professional to me.

Q: How is the term 'Financial Leverage' calculated? I'm referencing the term as used by Morningstar. I believe that the 5i website uses the term leverage ratio, correct?

Q: Have you guys every considered a "like" or "thumbs up" feature for the answers section? I often see answers I really agree with, and would like to acknowledge and display appreciation.
Thanks for all your great work,
Lee

Q: If Apple's earnings are down after reporting on Nov. 1st, will the market follow the fall of FAANG stocks? Would you continue investing in FAANG or start looking at other tech companies? If so, which would you recommend and what would be some good opportunity's if we see a slight crash in market?
Thank you,

Q: Hi Peter and Ryan,

I got to give million thanks to 5i Research for their analysis on ESIO a few months ago when I bought it at 18, thereafter I watched it went up to 24 and dropped to 15 recently, Your prior analysis indicated that high growth will be expected in 2019 which assured me and made confident to hold this stock, and fortunately I got the reward to day , the stock popped up 90% this morning due to a take over. Without your assurance, I would have sold it at a much lower price or even sold it at a loss during the recent market down turn and sector sell off.

ECI Enercare was another example which I was also rewarded.

I understand that you can not always get it right though I got caught with some other recommendation, but as you said, and I fully agree with you that good stock offset the other loss.

I can not say enough thanks to 5i research for your excellent service and very honest analysis. Keep up the good work!

Q: I, like everyone else has been getting hit with the recent market volatility. 5% loss to my balanced portfolio. What would you say to someone who only has 3-5 years until retirement. I have been leaning towards growth but perhaps should I look for more income stocks with the downturn in order to transition into income 3-5 years.

Thanks

Q: Good morning 5i,
My question concerns tax loss selling. If half a position was sold, say, roughly a month ago, I would be able to purchase the stock again today. But, say if I decided to sell the other half of the position today, would I have to wait another thirty days before buying anything back? Or, could I buy the original half back, now.
thanks

Q: Any thoughts on this company? How would someone find out about the track record of the management team?

Q: Greetings team 5i,

Beside my core portfolio, I invest about 5% of my money in a “fun” portfolio. It has not been much fun recently. I bought ABBV (at the top) in order to write covered calls and cash-secured uncovered puts.

These calls, written just out-of-the-money and puts written just in-the-money on Mondays with the expiry date on the Friday of the same week, have produced premiums ranging from $US0.81 to $US2.73 which happened this week.

Why is there such a wide range of premium prices and what do the higher premiums suggest?

Thank you.

Milan

Q: Hi,

Does your answer to a previous question on the sector weightings applies to US stocks also and will 5i Portfolios also need to be adjusted ?

Thanks
Ninad

Q: Hello,
The equity portion of our portfolio is 25% S&P ETF and 75% blue-chip Cdn dividend-paying stocks. We've used DRIP for a number of years, our reasoning being no fees to convert dividends into shares and to stay invested. Do you concur? My concern is both the book and market values include those shares purchased through DRIP...so it's not possible to distinguish between dividends and share prices. That would be very helpful to know. With such clarity, I'm supposing we would have ignored the advice to hold on in a couple of our holdings, eg CIX who's share price (exc dividends) relative to what we paid several years ago must be dismal. Your thoughts on that? Maybe you know how we can get such clarity, ie without stopping DRIP? Thanks.