Investment Q&A

Q: Hi Peter and the Team,
I would like to have your opinion and advise on my plan for my RIf. 200K and I do not intend to withdraw more than the legal annual requirement about 7%. My goal is to protect my capital therfore expect a 7% annual gain.

Cnd. Equity 40%: TD Cnd. Index 16%, Mawer Cnd. Equity 12%, RBC O'Shaughnessy All Cdn Equity 12%.
US Equity 20%: VUS 10%, O'Shaghnessy US growth 10%.
Global Equity 20%: VEF 10%, Mawer Global Equity 10%.
Fixed Income 20%: CBO 10%, VSB 10%.

I would like your views on the composition of this portfolio, my expectations and my choice of investments.

Thank you so much for your excellent service.
Regards

Q: I believe the direction and level of the US 10 year treasury bond yield is frequently used as a portfolio weightings benchmark. I recall the quant/strategist Peter Gibson (formerly CIBC and SCM) used to say he would shift weightings in stocks as this 10 year rate approached 3.75%. (do you know where he woks now by chance?). Stocks still seem to have the heaviest weightings but as treasuries have moved rapidly toward 3%, I was wondering what rate do you think a shift into a heavier fixed income weighting in a balanced portfolio should occur. Thanks for all you great work.

Q: Hello 5i Group
I am a new member to 5i and to investing although watching and reading for the last year and a half. I see your Model portfolio. Is this " model portfolio" updated annually? then tracked for 12 months? If I am looking at this list now as an " investment start date" how do I determine which ones on the list you are still recommending as " buy" positions?
I am looking for a combination of income and growth. Based on your reports that I have read I have recently bought small positions in AW.Un, BEP.UN and HR.Un
Thanks for your comment.

Q: Could you please give me your opinion on market growth GIC's.

Thank you,
Milan

Q: Hi 5i. I have a very basic investing question: If I sell everything now, when should I buy everything back?

Q: Hello to all ...my question regards the Bernanke announcement of pull back on bond buying by the fed. Is this the precursor to stopping ALL QE in 2013 and then raising interest rates at some time in 2014? And are hyou people still confident interest rates will stay low till late 2014 ?

Q: What would you be buying now (sector and or stocks that are atttractive)?;
or would you sit tight for a while longer (acknowledging that one cannot time the market)?

Thank you.

Q: Hi Peter,
With the price of gold fluctuating from day to day,what is the market telling us about the Fed and the economic numbers looking forward. Seemed like the price of gold was stabilizing last week and has now become an exercise in frustration. Some suggest that it is a good time to buy beaten down small-cap gold stocks such as SAS.
Thank you and have a good day.

Q: Hi 5i
I keep hearing analysts and advisors on BNN say the commodity super cycle is over. I fail to understand how commodities can not continue to go up when so much of the 3rd world is increasing there standard of living (driving cars, using more electricity, eating more meat etc.)
Then we have the complete slow down in the mining development sector due to financial, political and environmental issues.
I would appreciate your thoughts on the short/mid/long term outlook for commodities and the supply demand issues.
Thanks doug

Q: Peter ... are we going to experience a 10% market correction in the near future? ( 2 months). Thanks for everything.

Q: I just read an article were the analyst was concerned about high margin levels. It got me thinking about the 5i investment philosophy. Do you ever consider factors like this or where we are in the business cycle, or investor sentiment, or is that all just noise.Are the fundamentals of the company and its growth prospects the main determinant for you?
Mike

Q: You and your crew are providing well-reasoned and thoughtful opinions. I can't ask for more than that. Some of your former peers, if any, must be grinding their teeth at night.

In light of the ECB decision today and the FED comments yesterday, do you have an opinion on when interest rates in North Amerca will rise?

Q: I'm concerned about the volatility of the TSX; up 144 yesterday, down 167 today at 11.15 pst. In this environment, how can anyone invest for the long term with any confidence? We have 600G in stocks, and another 10% in cash. I was thinking of adding to some positions, but would I be better keeping the cash in the bank? Or is it just 'sell in May and go away'? Until when?

Q: Please help me clear my head, refocus and decide on a course of action after today's action.
Here are 2 headlines from the Globe and Mail, a mere 4 days apart and at polar opposites in terms of perspectives.

1. Headline on Globeinvestor Gold website today: "End of the supercycle looms as commodities, stocks sell off"

2. Four days ago, Rob Carrick outlined the case for :"Preparing for a Canadian comeback". (I have been and still do respect Rob's research, knowledge and opinions. So no put down intended here.)

Hopefully the shrill doom's day pronouncement about the end to the supercycle is an over -reactive, hysterical reaction to the last couple of days and not a forecast of worse things to come.

Your opinion would be greatly appreciated.

Thanks.

Q: Hello, I was wondering if you could clarify something for me, the "Sell in May". I'm assuming this means, to sell stock in May and take your profits, that being said it would follow that prices would go down in May. When I look at historical data, for stocks I'm interested in it seems that the prices actually go down in April, but historical data is limited in scope. I'm looking to buy, across the sectors, I've never bought during this time period, my question is should I wait?

Q: New member. Very informative site. Enjoying my membership a lot. I would like to add a (non-technology) growth stock to my portfolio. Can you give me two or three names to choose from? (I understand--all too well--that growth always comes with risk.) Thank you

Q: Hi, There is talk of a market pullback in the very near future...is it better to wait for this to happen and then buy at a discount?

Q: Goldman Sachs is evidently shorting gold and claiming 1450 end of 2013. I am quite cynical about their past record. What do you think about gold going lower here? Are you still confident in your Goldcorp assessment as a quality hold through this next period, until the seasonal summer buying months arrive? Thanks in advance.

Q: Hi 5i team. This is a general economics question. is there evidence that the US economy is capable of growth in the absence of stimulus? My simplistic calculation (14 T economy, 1T pump-priming) suggest that if QE is taken away, GDP growth will be zero or even negative. If that is the case, is the euphoria in the markets thus far this year based on the notion that, at least, things have improved so that we no longer slide towards recession (assuming the Fed will not stop QE) and actions taken by the Fed later against a better growth background (when it happens) will not affect the economic outcome drasticlly and this, against a backdrop of negative real returns on 10 yr treasuries now has push the markets up? Do you not find this going-in-because-it's-the-best-of-a-bad- bunch a little worrisome? Thanks. Henry

Q: Hi Peter, Your thoughts on today's blood bath and jobs report please. How bad is the report in your opinion. Thanks