Investment Q&A

Q: Good morning. I have some sizeable gains in my U. S. unregistered account. Average for the portfolio is 32,5% in 2024 so far. Would you trim some names to sit on the sidelines until the dust from the election settles and hopefully rebuy at a lower price, considering taxes payable as well? Thanks David

Q: please list the 5 most negatively impacted Canadian companies(any industry) should Trump win the November 5th election thanks Richard

Q: In a portfolio with banks at 42% (TD, and National), energy at 35% (TC, Sobo, and Tourmaline) and consumer discretionary 16% (ATD), what companies would you suggest diversifying into? This is my husband's account and he buys and holds. He will be selling Telus and needs some options for telecommunications and more. Could he be more diversified? He is asking my advice but I appreciate hearing from you.

Many thanks.
V.

Q: Hi 5i,
The BoC announced the largest rate reduction in 15 years (not including during the pandemic) this morning, and since that announcement my well diversified portfolio has experienced its largest single day loss (right across the board) since I began managing my own investments 8 years ago.
I've been looking forward to today's announcement because I had thought it would lead to an increase in my portfolio value, but it seems to have had the opposite effect - in spades!
Can you explain what's going on? And should I be worried?
Thanks 5i.
Peter

Q: Is there a bond crash coming because of high government debt, particularly in the US? How do you see gold and energy markets performing in that kind of environment and are short term bonds even worth the risk? Or is this fear all over done and we just live with debt levels far beyond our ability to ever repay them?

Q: A have been listening to a lot of reputable professionals stating we will soon be entering years of low returns in the stock market. Can you let me know what data they are reviewing to make such comments?
Also, do you agree with this assessment?
Thanks

Q: I am hearing more comments that the market at new highs, a correction is overdue. Would you know if this so called overvalued market , sector specific and if so then which sectors are currently overvalued and which ones are under based on historical 10+ years.

Q: Hey 5i, Last Monday I sent the Sector question below to 5iRinfo because it was a question about the website not a stock. I didn't get a response back from 5i, so I'll ask the question again. I don't think I should lose a question credit for this question.

I am a current member and can't find on your website if 5i does a Stock Sector Weighting chart i.e. today on the TSX what stock sectors should we be Overweight, Neutral and Underweight in? Should I have a heavier weighting in Finance or Technology? I'm sure you get it! If this chart is not there and updated on a regular basis then it certainly should be!!
Thanks for your help.
Cheers,
Chris Thomson

Q: How to prepare for volatility and duties to exports.

Q: Good morning 5i
I noticed this morning that there was a question showing concern for the election and stocks. I am not thinking about selling out completely. But, I have considered selling everything that has to do with green energy. While I think it is important and necessary, it doesn’t look like Trump thinks so. And there looks like a strong possibility that he will be given another chance to see what he can do. So, the question is not about selling all but certain things, such as icln. How would you see that?
Thanks for your great help

Q: On October 1st, 5i answered a question which including this line "Historically, once the election results are in and the uncertainty has been removed, the markets tend to move higher into the rest of the year, regardless of the outcome." I can understand this happening historically but this is anything but a typical election compared to past elections. Trump is now speaking to the Economic Club of Chicago and again threatening high tariffs across the board. Sometimes you have to take what he says with a grain of salt but his Chinese tariffs in 2018 saw quite the pullback and that was nothing compared to what he's proposing. I'm up 20% this year with much credit to 5i. I know you don't like timing the market but I feel a need to safeguard much of my gains somehow (maybe 50% cash into CASH so it at least gives me a monthly dividend until the dust settles). Just looking for more of your thoughts here especially seeing there's a decent chance he may win. Thanks!

Q: The general message from MSM and other commentators is the US economy is strong despite inflation, higher interest rates (which has started to decrease), higher cost of goods etc. A friend of mine is trying to convince me the economy is tittering and the stock market gains this year are not based on valuation but mostly speculation; that we're either in a recession or seeing stagnation. The Center for Microenomic Data from Q2 2024 showed household total debt continues to rise, unemployment is creeping up (which can lead to lowering of inflation but the price of goods are still high), even if unemployment is low, how many people have 2+ jobs? and gold has been really performing well which could indicate continued inflation and even stagnation. My question is are there behind-the-scenes indicators such as above that people don't usually talk about indicating the US economy is in rougher shape than what is being reported?

Thanks

Q: Hi Team,

One thing I constantly struggle with is if I characterize myself as a growth investor (higher appetite for risk and volatility, focusing on growthier stocks) I tend to not invest in sectors such as utilities, materials, REITs so I end up not being diversified enough to capitalize on secular trends.

For a growth investor do you still recommend having exposure to lower growth companies (ie. Fortis, Hydro One) in the more cyclical sectors (utilities, materials, REITs and etc.)? Is there any evidence that you see or can show on whether a portfolio geared more towards growthier sectors would outperform a more balanced portfolio over the longer term?

I'm comfortable with the higher risk and more sector concentrated portfolio, but if it comes at a detriment to overall returns by missing secular trends within other lower growth sectors (materials, utilities, REITs) as the case is right now would I be better suited to better diversifying?

For more experienced growth investors like Peter and Ryan would you two be invested in materials, utilities and REITs in your own personal portfolios?

Thanks as always,
Jon

Q: would you take some profits from the market or stay the course?

Q: Most sectors have done well as the market has reached all time highs in recent weeks.

Assuming that interest rates will continue to be cut over the next one to two years, what sectors do you think will continue to do well in this environment and what sectors do you think will struggle. What sectors would you avoid?

Thank You
Tim

Q: If we do go into a significant recession over the next year, what sectors will do poorly and what sectors will likely be more stable? How might REIT ETFs perform?
Thanks!

Q: Everyone, what are your thoughts on the markets for the rest of the year? Clayton

Q: Why are the markets so insensitive to what’s going in the world? Near war in the Middle East, genocide in Ukraine, far-right parties everywhere in Europe, vicious comments in the US . Not close enough yet to North American pockets? Publish if you want. Thanks.

Q: Is 8% weight too high for a material sector? What % would you be comfortable with?

Thanks

Q: Considering what is happening to the Treasury yield curve, if one is looking for capital gains what maturity of bonds would you suggest at this time?