Investment Q&A

Q: Could I get a couple of suggestions for 1-2 small-to-mid-cap regional US banks with good fundamentals that you like the looks of. What are your thoughts on US financials generally for the next 12-24 months. Thanks.

Q: Now that there are 11 sectors in the Toronto TSX what would be your Sector allocations for a Conservative dividend and some growth oriented 45 year old investor.
Thank you.... Paul K.

Q: I understand there is an ETF that could provide some protection in case of a down market,I believe these are called inverse ETF. I looked in the ETF section and only found one mention of inverse ETF and not sure I understood how it worked.
Any info would help as I am looking to buy "insurance" protection.
Thanks
Jean

Q: When you stated that people are moving out of dividend paying and into growth stocks do you think this is short term investments?I am a long term dividend investor.Should I follow the crowd?

Q: Good afternoon, I had moved everything to cash, believing that we were overdue for a bit of a correction, and also because I did quite well on atd and ccl. . Do you think a correction will occur when the honeymoon is over with Trump? I know no-one has a crystal ball, but do you think it is likely? If no, would you be content with the above choices for a moderate risk? I plan to keep my US in cash for now.
Thanks as always.

Q: There seems to be renewed enthusiasm for mining stocks, with the likes of Teck, Quantum and Hudbay going up like rockets. What do you think of the mining sector (excluding gold)? My impression is you've been fairly lukewarm over this in the recent past. My portfolio has a very small bit of Teck (about 1%) and am wondering if I should be putting more money into this sector.

Q: I would like about 3 ETF's to cover my fixed income and 4 or 5 to cover your best idea sectors. Thanks Al

Q: Hi,
Ive own a few etfs (vgg and vfv). I have some other individual stocks as well, but the majority of my portfolio is in the etfs looking for long term growth. I have been thinking about adding emerging markets but am having a hard time rationalizing it. I saw that a few days ago you recommended VEE. Can you explain the value of this etf, or is there a better way to get some emerging markets exposure? VEE opened at 24.65 4 years ago and has been up and down a little, but is only at 28.84 today. Is 4 years not thinking long enough for this? Im just having a hard time seeing the value of adding it to my account since VFV has doubled and VFV is up 65% in less time.

Thanks!

Q: Hi Peter and Team!! I do not have any exposure to emerging markets in my portfolio. Could you suggest an ETF for me, and is it a good entry point at this time? Thank you, Tamara

Q: Hi 5I Team,
I own the above preferred shares. With interest rates on the rise is it time to sell these? If so what would you recommend.
Thanks
Bob

Q: I have Ryan's read excellent article dealing with the impact of the US election on Canada.

However, I am somewhat bewildered by recent market activity - especially on the downside here in Canada.

The opinion has been expressed that interest rate incrases are/were already baked into the market. Can you quantify that in any way? e.g. 3-5%; 1-2% .... to what degree they are "baked in".

The reason I ask is that, it seems like all the media had to this week was mention the likelihood of inflation driven interest rate increases in the USA and sectors here like utilities and REITS took it on the chin.

How much more downside can we expect given the impact of just a few words about possible Trump moves to drive the USA economy when the decision(s) are made to actually increase rates in the USA?

Could this downward pressure be magnified if, in addition, we see US corporate taxes reduced and see some companies start to shift production to the US.

How likely is it that we are facing the prospects of a signicant bear market lasting a few years here?

Or is this a knee jerk reaction right now like Brexit that will likely reverse itself over the next few weeks?

Any light you can shed on this will be greatly appreciated.

Q: portfolio- with recent scenario (new us president) looks like people moving to more growth oriented names. as such what would be recommended sector allocation. thanks

Q: I am retired, and have a portfolio with a mix of equities, ETFs and bonds. I have some money from municipal bonds to reinvest and I am considering some ETFs such as XSB, CBO, XBB and XHY as options to invest these funds, with a 5 year investment horizon. In the current environment (interest rates and the US election), how do you think these ETFs will perform in the coming years? Thanks for your great service.

Q: I hold XQQ and have a small gain. In light of the US election result would you recommend holding on to this etf? Or, would you switch to a Dow based etf? Thanks, Bill

Q: Given the "new" political landscape in the US, which sectors should do well ?

Q: Due to Trump's election and his political/economic agenda, would you recommend taking up a position in an American Equity fund at this time? Or, would it be wiser to "Wait and See" because of the market's current unpredictability/volatility? Thank you.

Q: How would you suggest I invest $100,000 in fixed income today, or would you recommend I hold the cash position into December? My only fixed income holding at present is a $200,000 5 year GIC ladder. Thanks, Barrie

Q: Where is the best place to hold some short term cash that will be deployed over the next 2-3 of months? Is it worth holding in high interest account, ETF or just to leave as cash and deploy as opportunities come up.
Thanks

Q: Hello 5i
Thought I would ask Investor portfolio management and psychology/behaviour question.

As I watch my profits in companies like Emera drain away 2% per day ( down $5/share since August), I wonder what the statement to investors should be when the question comes up, why did we not get out seeing clearly this stock is in a down trend and with rates moving up, is going to be out of favour and see price declines?

Waiting for an annual dividend of $2 when in four months $5 of capital disappears, just does not make good math sense or a profitable stance.

In September this was a good investment. What are your thoughts on this today with debt high, rates moving and short sellers pointing at companies like this?

Should we not have been selling at $50 instead of holding at $45.....and watch the price tick lower?

As you can imagine, it is tough watching long term paper profits in REITs, Telcos and utilities drain away.

Would you please offer your thoughts on the emotions that arise in this situation and with the stated company and sectors?

Thanks
Dave

Q: Is it a good/bad time to buy and hold this etf for the long term?