Q: So, this is quite a mess we find ourselves in. However, we will eventually come out of it. I'm curious, where do you think the best money will be made going forward? Which 3 or 4 sectors do you think might lead us out of the situaltion and what is the absolute best company, on most all metrics, in each of the sectors. I'm open to etiher Canadian or global companies. Thanks for your opinion.
You can view 3 more answers this month. Sign up for a free trial for unlimited access.
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Tony Dwyer of Canacord Genuity talks about holding more cash now, being defensive and being ready to invest in early cycle sectors "when we come out of this later in the first half" of this year. Which sectors historically are early cycle sectors and secondly among those that are how have each performed relative to other such sectors when markets have rebounded in the past?
Q: Hi! Can't help but feel panicked but know wrong thing to do is sell. Your thoughts on this. Can you please provide outlook based on latest Credit Swisse Crisis and explain what is happening. It seems like everyday now we will hear of more failures. From someone with more knowledge can you please advise if we need to just sit tight with portfolios if holding quality dividend paying companies which one relies on for income. At a certain point will the Fed step in and cut interest rates if more systemic issues present? Thank you!!
Q: Good morning, you have mentioned several times that Covered Call ETF's work best in sideways markets. I have the feeling that we will probably see the Markets basically moving sideways for a while. What is your opinion, thanks?
Q: Peter; Do you think Powell would dare to do a 50bp hike in the face of the SVB debacle- could this actually be a silver lining for him ? Thanks
Rod
Rod
Q: Dear 5i team.
Here we go again with the annual US debt ceiling shenanigans.
This time seems to be a little different as the level of crazy appears to have ramped up in the US political sphere.
May I ask for your collective professional views on what your crystal ball says the possible initial market reaction (bond/equity) might look like assuming they DO NOT come to agreement in time, this time around?
Is there a preferred position on Bonds you would suggest if such a scenerio materialized?
Look forward to hearing your views on this.
Here we go again with the annual US debt ceiling shenanigans.
This time seems to be a little different as the level of crazy appears to have ramped up in the US political sphere.
May I ask for your collective professional views on what your crystal ball says the possible initial market reaction (bond/equity) might look like assuming they DO NOT come to agreement in time, this time around?
Is there a preferred position on Bonds you would suggest if such a scenerio materialized?
Look forward to hearing your views on this.
Q: Hi there,
Is the collapse of SIVB an isolated event, or do you think its an indication or something larger happening under the hood of the financial markets? Is it possible that this could lead to a huge market correction to the downside across all sectors?
Thanks!
Is the collapse of SIVB an isolated event, or do you think its an indication or something larger happening under the hood of the financial markets? Is it possible that this could lead to a huge market correction to the downside across all sectors?
Thanks!
Q: Hi Team,
So...first the crypto banks start to fall. Now SVB bank looks to be collapsing, I have heard due to the impact of rapidly increased interest rates. What happened here? Should we be worried about a domino effect here similar to 2008? (hope not!) I typically thought high rates are "good" for banks...to the point where the economy starts to come to a standstill that is. Thanks for the insight.
shane.
So...first the crypto banks start to fall. Now SVB bank looks to be collapsing, I have heard due to the impact of rapidly increased interest rates. What happened here? Should we be worried about a domino effect here similar to 2008? (hope not!) I typically thought high rates are "good" for banks...to the point where the economy starts to come to a standstill that is. Thanks for the insight.
shane.
Q: Greetings, 5i Research,
Thank you for your authoritative answers to my previous questions.
Outside my tax-advantaged accounts, I plan to sell just-in-the-money, cash-secured puts on SPY on Mondays, expiry dates on Fridays of the same week. I expect to be assigned half the time. When assigned, I will own SPY, which will allow me to sell just out-of-the-money covered calls on the security. I will repeat the process when assigned, and sell just-in-the-money, cash-secured puts again.
My question is what are the risks of this approach?
Thank you.
Milan
Thank you for your authoritative answers to my previous questions.
Outside my tax-advantaged accounts, I plan to sell just-in-the-money, cash-secured puts on SPY on Mondays, expiry dates on Fridays of the same week. I expect to be assigned half the time. When assigned, I will own SPY, which will allow me to sell just out-of-the-money covered calls on the security. I will repeat the process when assigned, and sell just-in-the-money, cash-secured puts again.
My question is what are the risks of this approach?
Thank you.
Milan
Q: In general, do publicly traded companies suffer as steeply as consumers when interest rates are high? Does their debt level directly amplify that pain or do they hedge with loans at fixed rates, use preferred shares to fund large expenditures, and the like? Are there sectors or specific companies that are truly strained by interest rates?
Separately, my mental model is that when oil is in high demand the CAD should be relatively strong against the USD. I hate converting at $1.40 per greenback. Yikes. Are there obvious factors that suggest the CAD should strengthen, stay the same, or weaker further?
Many thanks,
Separately, my mental model is that when oil is in high demand the CAD should be relatively strong against the USD. I hate converting at $1.40 per greenback. Yikes. Are there obvious factors that suggest the CAD should strengthen, stay the same, or weaker further?
Many thanks,
Q: A recent guest on Market Call stated that while we have been in a dis-inflationary cycle for decades, we are now in a re-inflationary period which could go on for a long time. This means interest rates continuing to rise in steps over perhaps several years. First, could you comment on this view. I would like to hear your ideas about the direction of near term interest rates, as well as long term. I know that this is a predictive type of question but I highly value your opinions. Secondly if we are indeed in for a long stretch of gradually rising interest rates could this possibly mean a long term decline of growth stocks, or at least the ones that are not yet profitable. Thank you.
Q: Good afternoon folks
I listed to Robert Kessler on Consuella Mack show called Wealth Track on Sunday. He is very convinced that we all should get out of stocks and go into US LADDERED TREASURIES. He feels the market will be very bad for 15 years or so. What is your take on his view?
Thank you all for your guidance through the good times and the turbulence. I've been with you for almost 9 years now and highly recommend you.
I listed to Robert Kessler on Consuella Mack show called Wealth Track on Sunday. He is very convinced that we all should get out of stocks and go into US LADDERED TREASURIES. He feels the market will be very bad for 15 years or so. What is your take on his view?
Thank you all for your guidance through the good times and the turbulence. I've been with you for almost 9 years now and highly recommend you.
Q: What do you make of the thesis that the next decade will not belong to tech stocks but instead to commodities? I have always avoided commodities, believing the the cure for high prices is high prices (lithium for a recent example). Once interest rates start getting cut, won’t we just be back to tech stocks looking like the best area for growth again?
Q: Everyone, what has you gleaned from the quarterly report so far this year. Clayton
Q: Hi 5i, can we have your thoughts on this mornings inflation numbers out of the US?
Thx.
Thx.
Q: If you were very concerned about the economy (think 1920's) and especially the Canadian economy (Liberal endless spending); and had sufficient income from real estate and private investments to fund your life style until the end of ones life, would it make sense to convert ones stock portfolio to something like PSU.U? I have done very well on my stock portfolios over the past decade, except for past 15 months. I am concerned that there are many factors that North American public corporations have to deal with and that profit are being pushed aside to meet their corporate goals.
Q: Hi Guys
will the default level not go through the roof on all these Corporate Bonds in the next few years when they have to re issue debt at much higher levels ? and wont a recession really contribute to high bankruptcies.
What kind of a correction in this ETF can we expect, something along the lines of 30 %, Algonquin Power was sure hit hard with higher floating rates.
Thanks Gord
will the default level not go through the roof on all these Corporate Bonds in the next few years when they have to re issue debt at much higher levels ? and wont a recession really contribute to high bankruptcies.
What kind of a correction in this ETF can we expect, something along the lines of 30 %, Algonquin Power was sure hit hard with higher floating rates.
Thanks Gord
Q: With rising intrest rate banks should earn more but why Bank stocks are under performing?
Which sector should benefit from higher intrest rate?
Which sector should benefit from higher intrest rate?
-
BMO Covered Call Utilities ETF (ZWU)
-
Evolve Global Healthcare Enhanced Yield Fund (LIFE)
-
Global X S&P 500 Covered Call ETF (XYLD)
Q: Hi
Is it time to lighten up on the following and look at growth stock..
In our RRSP we have
LIFE at 5% of the RRSP (still not underwater)
XYLD at 9% of the RRSP
ZWU at 5% of the RRSP
Like the dividend but two holdings are are dropping in valve.
Thank you
Mike
Is it time to lighten up on the following and look at growth stock..
In our RRSP we have
LIFE at 5% of the RRSP (still not underwater)
XYLD at 9% of the RRSP
ZWU at 5% of the RRSP
Like the dividend but two holdings are are dropping in valve.
Thank you
Mike
Q: I'm hoping you may answer this question even though I'm out of points as the Q@A may be of general interest to readers! May I please have your thoughts on the latest inflation stats? I realize it's hard to say, but do you see a light at the end of the tunnel? I keep reading about Michael Burry's dire prognostications and am concerned. It seems though that there is a mixed bag of opinions - for everyone like Tom Lee saying things will start looking up, there are others who say we are in for a mutli year inflationary period. Thank you,
Jason
Jason