Investment Q&A

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.

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

Q: With rising intrest rate banks should earn more but why Bank stocks are under performing?
Which sector should benefit from higher intrest rate?

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

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

Q: Hi all , my question is when should you add more shares to your portfolio holdings if you plan to hold the stocks you have for a few years. Is there a good time during the year when to add , is it after good company results or when a company goes up or down a certain % , or just keep a % weighing and never add to it .
Thanks,

Q: Hello 5i,
In the "Managing your Prtfolio" section of the Portfolio Analysis it is mentioned that a sector should be no more than 20%, yet I am warned tht I am near 20% in an industry. What is the reason for the difference? Could it be that the industries make up a sector and here are diffeent values for industries than for sectors?
Thank you
Stanley

Q: Hi,

I am reading periodic articles in financial media discussing growing consensus of financial professionals turning negative on equity markets. While I realize traditional points of balance discuss how there are two sides to a trade, etc, could you please offer your thoughts on the probability of the floor falling out from this market, and in contrast, what would be a catalyst for a next leg higher.
The ongoing layoffs in the tech sector appear to reflect demand/revenue fallout from the discretionary economy.

Q: There has been incredible volatility in the markets with indexes and stocks bouncing up and down for last 3 years making investing in stacks and bonds difficult. There has been no really true safe escape haven in equities or bonds apart of cash and money markets and recently Guaranteed income securities. Considering all these factors influencing the markets today would you venture your opinion when we could reach some market stability ?
Miroslaw

Q: I think Canada is heading for a 'soft landing' where growth remains intact, employment is decent and interest rates remain at this level for at least a year. What Canadian sectors or industries will benefit from this environment the most?

Q: Hello 5i
I have read recently that several US analysts think that the Canadian market will do better than the US this year. T Rowe Price was the most recent one in the National Post, i think. Wondering what you think of this thesis. And if you believe it, how would you organize to profit from it? I imagine the thesis has a lot to do with resources with the possible re opening of China. Is there, for instance, a good etf? Or, what stocks would you choose to create your own etf substitute?
Thanks as always for your excellent advice

Q: I am a long-time shareholder in CGI Group (ticker: GIB.A on the TSX), a Canadian success story. Since 1996, the stock has risen some 300-fold (from 40 cents, split-adjusted, to new high this past Friday (~$122/share). One reason for the dramatic capital appreciation over the past 27 years is that, to my knowledge, CGI Group has never paid a dividend, preferring rather to buy back shares most years. I am curious, given the Canadian federal government's announcement re: taxing share buybacks (beginning in 2024, I believe), how you feel this might affect CGI share buyback policy in particular, as well as for other Canadian companies, in general.

Ted

Q: Hi,
I was bit surprised by your answer to Kevin's question today about your sector preferences. You had chosen the following: XIT/XRE/XFN/XLY/XLV.

I thought given the current possible recession scenario lurking in the background and also from your own answers to others, you would have chosen XLP, soft or hard landing people need Staples to survive, XEG because of all the uncertainties, XBM/GLD as one expects demand to go up when China opens up. Plus as a hedge against the USD going down.

There must be a reason for your choice. I am curious to find what your rationale was/is.

Q: Do you expect the US will raise interest rates tomorrow and if so how will the stock market likely react ?

Q: Hello 5i Team
On BNN Bloomberg today one of their guest a Banking manager mentioned that Emerging Market is in the beginning of a decade of recovery.Please give me your thoughts and does this translate in EM out performing and what percentage should one own?Please deduct the appropriate credits for these questions.
Thanks

Q: The market has rallied nicely. I have some holdings ,non dividend paying ,that i have struggled with holding on to and have come back nicely Would now be a time to review ones stock holdings,maybe raise some cash in anticipation of slight pull back or considering a pause in rate hikes, would you go all in with growth stocks?

Q: Looking for your crystal ball on who you think will underperform or outperform in 2023. Can you rank overweight underweight or neutral on overall market performance:

USA, CAN, EU, Global, Emerging Markets.

Reason I ask is I am heavily overweight USA and thinking it might be a good time to move to neutral in USA and move that cash to one of the other 4 geographic areas.

Q: Hello Peter et al:

A great question by James today and equally a great answer by you! AAPL wasn't included in James' question and hence the price targets characterized by Good price VS Great price for AAPL wasn't mentioned. I have added AAPL here.
(MSFT: 240/210; GOOG: 95/80: AMZN: 95/80.)

IF I were to request you to wear your Option trader's hat, (after all you manage a fund based on options!) how would you play these stocks. Assume that these are long term holdings and cash covered. Should one simply either buy puts or sell covered calls. Your "great" price targets roughly assume about 15% downside correction.

If indeed these solid stocks are going on sale and if one is determined to hold them for ever, why would one not make any money whilst one waits?
That's the thesis behind my question.

Many thanks in advance.

Mano