Q: Hello, I saw your answer to Stanley: “Bonds may look better next year, and may look better if the market weakens further.” We are expecting rates to climb, which will affect the bonds value. Normally, rates would already be higher at this stage of the economic cycle, and I would understand. I just don’t see the benefits of keeping bonds in ETFs with the current situation. We might as well hold cash or at least ST bond (held to maturity) for market protection. Could you help me understand? I am thinking about changing a portion of my portfolio (VBAL, XBAL MAW104) for a stock ETF / individual bond strategy.
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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: This is something I would rather discuss rather than post, but thats not doable.
So here goes. I've been a subscriber almost since your beginnings and more or less understand how you operate and the type of investments you would reccommend in your portfolios.
There is something that really puzzles me, especially given your experience, and know how.
Take SHOP as an example. About 5 months ago it hit a high of $2230. Today it is $595.
In between the highs and the low you have waxed eloquently about the market conditions and risks involved in the Q&A section, almost on a daily basis. You've talked about increasing rates, the aggressive fed, how high value stocks react very poorly to these conditions etc etc.
In the balanced portfolio it was purchased at approx $1200 and so it has gone from a 100% gainer to a 50% loser.
To me that is a very very large opportunity loss.
My question to you guys is this.
Given client sentiment and emotional well being (given people hate to lose more than they enjoy winning) why does 5i not adopt a strategy to prevent this from happening.
For instance, a widely adopted strategy that once a position doubles half is sold to ensure that there are no losses on the position. That would make a lot of people very happy.
OR, I know you resist this, but using LIVE trailing stop loss orders. Imagine if 5i adopted a trailing stop loss order, where there is no emotional involvement, just a limit to how much you allow the stock to retreat before selling it. Imagine if there had been a 20% TSL on SHOP. And you know what, if we are stopped out then 5i can reccomend in one of its monthly updates a repurchase if they deem it ok. How much can you miss out if you are out of a position a month or less?
Most would certainly say darn, we missed a few points, rather than saying darn, what am I going to do now?
I do subscribe to other services that have perfected these techniques and they can work very favorably , especially in horrific markets like we are experiencing now. For most subscribers it can certainly give Peace of Mind.
Food for thought
Sheldon
So here goes. I've been a subscriber almost since your beginnings and more or less understand how you operate and the type of investments you would reccommend in your portfolios.
There is something that really puzzles me, especially given your experience, and know how.
Take SHOP as an example. About 5 months ago it hit a high of $2230. Today it is $595.
In between the highs and the low you have waxed eloquently about the market conditions and risks involved in the Q&A section, almost on a daily basis. You've talked about increasing rates, the aggressive fed, how high value stocks react very poorly to these conditions etc etc.
In the balanced portfolio it was purchased at approx $1200 and so it has gone from a 100% gainer to a 50% loser.
To me that is a very very large opportunity loss.
My question to you guys is this.
Given client sentiment and emotional well being (given people hate to lose more than they enjoy winning) why does 5i not adopt a strategy to prevent this from happening.
For instance, a widely adopted strategy that once a position doubles half is sold to ensure that there are no losses on the position. That would make a lot of people very happy.
OR, I know you resist this, but using LIVE trailing stop loss orders. Imagine if 5i adopted a trailing stop loss order, where there is no emotional involvement, just a limit to how much you allow the stock to retreat before selling it. Imagine if there had been a 20% TSL on SHOP. And you know what, if we are stopped out then 5i can reccomend in one of its monthly updates a repurchase if they deem it ok. How much can you miss out if you are out of a position a month or less?
Most would certainly say darn, we missed a few points, rather than saying darn, what am I going to do now?
I do subscribe to other services that have perfected these techniques and they can work very favorably , especially in horrific markets like we are experiencing now. For most subscribers it can certainly give Peace of Mind.
Food for thought
Sheldon
Q: Dear 5i,
I just renewed my annual membership. I have been a happy member since you launched your service. I just wanted to email my gratitude for providing timely and unbiased objective information. I am a basic subscriber but I like the other options you provide and the continual improvements. Thanks and stay well!
I just renewed my annual membership. I have been a happy member since you launched your service. I just wanted to email my gratitude for providing timely and unbiased objective information. I am a basic subscriber but I like the other options you provide and the continual improvements. Thanks and stay well!
Q: Thoughts on how to stomach all the volatility. Since I know you are not a fan of stop losses does one just grin and bear it. It's nice when some sectors are working but what does one do when all sectors potentially stop working? It seems there are so many unknowns which the market doesn't like. In your experience, what is it like to go through a bear market and what advice you you have for nervous retail investors. Your wisdom appreciated!
Q: Just following up on your perspective relative to market sentiment. I find that the Indices are misleading, in a very LARGE way. In fact the divergence between them and the overall breadth and performance of mid/small caps is incredibly large. What references should/could be used outside of the indices in order to gain a true reflection of overall stock performance.
Q: I use CIBC Investors Edge and when I search GOOG it includes on the canadian exchange "GOOG: Aequitas NEO-L" and trades at around $22.
Is this still an investment in Google ?
Thanks
John
Is this still an investment in Google ?
Thanks
John
Q: What are the best sites for free conference call transcripts that you know of ? I already know seeking alpha (not free) and sometimes yahoo finance. Do you know of better ones ?
Thanks !
Thanks !
Q: Wanting to add some large cap growth stocks to my large cap utility, bank, pipeline,infrastructure, portfolio as new money becomes available. Growth seems to be out of favour so am seeing this as a time to buy with a 2 year window.
You often advise waiting for a declining stock to show some strength, or at least to start building a base before stepping in. I find this difficult on 2 aspects. Technically, how do I determine when to buy a declining stock in this market ? Psychologically, I hold off on buying when the stock declines further, thinking the decline will continue, and if the stock moves upward I get get frustrated believing that I missed the boat . Do former “ favourites “ such as the 2 above lose their shine even when the markets recover ? Which of these would you purchase first ?
Thanks. Derek
You often advise waiting for a declining stock to show some strength, or at least to start building a base before stepping in. I find this difficult on 2 aspects. Technically, how do I determine when to buy a declining stock in this market ? Psychologically, I hold off on buying when the stock declines further, thinking the decline will continue, and if the stock moves upward I get get frustrated believing that I missed the boat . Do former “ favourites “ such as the 2 above lose their shine even when the markets recover ? Which of these would you purchase first ?
Thanks. Derek
Q: Hello Peter, Could you tell me which sectors are doing well in Canada and the USA and how long will they be in favor ie:- 3 months, 6 months 1 year etc.
Thanks.
Ivan
Thanks.
Ivan
Q: Hello, for a 5-year holding period and $400k, in terms of currency costs, is it better to buy CDRs and let the CIBC handle currency hedging as a % or buy US$ and actual US stocks from a discount broker (without accounting for currency fluctuation after 5 years)? Would a breakeven holding period have to be longer than 5 years? Thanks.
Q: Hi Team,
Looking backwards with 20/20 hindsight vision…buying oil stocks at bottom basement levels a couple years ago is looking like it was the opportunity of generation with some names nearing 10x bagger levels off bottom and still climbing. I missed this opportunity . My question is today …are there any specific names or sectors that you see as if we bought today , that we might be looking back in 5yrs with the same type of view thankful that we bought in today? Please list your best ideas. Thanks!
Shane
Looking backwards with 20/20 hindsight vision…buying oil stocks at bottom basement levels a couple years ago is looking like it was the opportunity of generation with some names nearing 10x bagger levels off bottom and still climbing. I missed this opportunity . My question is today …are there any specific names or sectors that you see as if we bought today , that we might be looking back in 5yrs with the same type of view thankful that we bought in today? Please list your best ideas. Thanks!
Shane
Q: Thank you for the interesting report concerning the increased insider buying in recent months.
Is there any data to suggest that a company which has insider buying will perform better than other companies ? If so, can you provide a link ?
Thank you !
Is there any data to suggest that a company which has insider buying will perform better than other companies ? If so, can you provide a link ?
Thank you !
Q: We have money in a “high interest” saving account at 1.5 percent. With inflation growing, what alternatives would you suggest (mutual funds, ETFs) for funds sets aside for emergencies? Or, perhaps is the 1.5 percent fine given the nature of these savings(
Q: In these uncertain times and likely to continue for another year or so, me, pondering - what are the key metrics or factors that I should be following/focusing on to assess the ongoing health of the stocks held in my portfolio???
Your take/suggestion would be much appreciated ........Tom
Your take/suggestion would be much appreciated ........Tom
Q: Today Claudio asked if you think the various indices will be higher or lower. You answered yes. Can you clarify?
Thanks
Thanks
Q: Pre COVID there were some interesting AGMs to attend, and sometimes a lavish spread depending on how much the Co. wanted to impress its investors. Now out of ~20 notices in my mailbox only GSY has a real life AGM, the rest being online.
Is online the new norm for these functions or is GSY the first to return to the old ways? Since it's happening at noon, the meeting at least has promise of finger food!
Is online the new norm for these functions or is GSY the first to return to the old ways? Since it's happening at noon, the meeting at least has promise of finger food!
Q: Good afternoon.
The other day I asked a question about dividends paid in US$ by Canadian companies. It was noted that these dividends are usually best kept in a U.S. account .
If these dividends are to be used for income in Canada is it still best to keep them in a U.S. account?
If so what is the best method to minimize exchange costs?
The other day I asked a question about dividends paid in US$ by Canadian companies. It was noted that these dividends are usually best kept in a U.S. account .
If these dividends are to be used for income in Canada is it still best to keep them in a U.S. account?
If so what is the best method to minimize exchange costs?
Q: I am trying to ensure my portfolio is appropriately balanced to deal with both the inflation we're currently facing and the recession most feel is coming in 2023. Should I target a portfolio that is balanced across all sectors and hold on for the ride? Or should I try to strategically overweight/underweight certain sectors? And if the latter, do you have any advice with regard to sectors and timing? Thank you.
Q: Hi,
Would you be reluctant to maintain more than $100K invested in a Canadian financial institution because of the cap on CDIC insurance?
I recently transferred a bunch of dough to Tangerine as its HISA is paying 2%.
I'm not concerned but should I be?
Thanks,
Robert
Would you be reluctant to maintain more than $100K invested in a Canadian financial institution because of the cap on CDIC insurance?
I recently transferred a bunch of dough to Tangerine as its HISA is paying 2%.
I'm not concerned but should I be?
Thanks,
Robert
Q: With respect to Canadian companies that pay their dividends in US$ ( for example AQN) do you think it is better to keep these shares in the US$ side of my RRSP or the CAN$ side of my RRSP.
I am just thinking in terms of exchange costs every time a dividend is paid.
When and if it came time to sell I could just swing the shares back to the Canadian side.
Thanks very much.
I am just thinking in terms of exchange costs every time a dividend is paid.
When and if it came time to sell I could just swing the shares back to the Canadian side.
Thanks very much.