Investment Q&A

Q: Like many people. I'm currently down quite a bit on a lot of growth stocks even though I bought them well below their all-time highs. For example, I'm down 50% on PYPL, 45% on Roku, 35% on Shop.

I have decades before retirement (and I do have a pretty balanced portfolio) so I'm not worried about my investments over the long-term, but it still hurts to see quite a bit of my positions so deep in the red.

I know it's impossible to predict (and it's always possible that some of these growth stocks will never recover), but in your experience how long do you think we could reasonably expect it to take before some of these growth stocks recover?

For example do you think it's reasonable for us to expect it to take 3 years, 5 years, 10 years for the above mentioned stocks (like PYPL, ROKU, SHOP) to recover?

Q: Hi team,
Given the tensions around Russia and Ukraine and the increased likelihood that we may see a war in Ukraine, what sectors do you think would be less likely to see a negative impact from this conflict? Are there sectors that may benefit if we do see war in Ukraine?

Appreciate your insight on this.
Paula

Q: Hi

Based on what is happening, that is not going to end anytime soon.

Is it time to reduce our Canadian investments and move the lions share to the US and
Europe?

Thank you

Q: With your expertise are you able to articulate the de coupling of Small/Mid caps in comparison to the Nasdaq/TSX/Dow. Small/ Mid caps are down near early 2020 lows and yet the broader index's do not reflect this. Historically does this happen often? The underlying sentiment has been quite deflating.

Q: Dear 5i
When the pandemic first started and the market dropped substantially , some days even7-10% in a single day i think it was because it was such a new and scary scenario that none of us had experienced before and thus created a lot more fear in the markets . Pandemics fortunately are not that common and creates a situation with a lot of unknowns when they do occur .
Wars though serious and scary as well have occured more often in history and though terrible, do not represent the same degree up unknown as a pandemic does . That being said , what would be your best GUESS as to what the market reaction would be with regards to a Russian invasion in the Ukraine .I suspect there would be a sharp reaction by the markets to the tune of a 2-3% downturn but certainly not the 7-10% downturn in a single day when the pandemic first hit .
I`m trying to remain level headed with regards the the Russian situation and would welcome your input . I know it is a guessing game but i feel your guess might be a more accurate guess than most of the rest of us .
Thanks
Bill

Q: I'm considering getting some HXQ after its fall related to incipient interest rate hakes. In your view is it too early for bottom fishing the NASDAQ?
Thanks

Q: Can you tell me what day the feds in the U S and Canada meet to decide interest rate decision in March and looking into your crystal ball how many hikes do you think there could be this year
Thanks

Q: Dear Peter and Ryan.

I did not sell any stocks yet and my portfolio incurred significant loss lately. I was going to ride through the drop. Now I started to doubt my decision. How do you think about the tension/war between Russian and Ukraine, in addition to rising interest rates? If you don't recommend selling now, do you think it is an opportunity to buy more?

Thank you

Yiwen in panic mode :-)

Q: We know uncertainty helps the markets drop. With Russia saying they are drawing back troops and NATO and USA say they are building up, one could anticipate uncertainty ahead. With this in mind, is there any advice for which type of stock might be the best to buy on a future dip?

Q: What conditions do you think are required for confidence to return for growth stocks with good fundamentals? Thanks!

Q: If or when war in Eastern Europe erupts, which sectors of North American markets would be affected the worst/the least?

Q: Hi 5i, In these times of increasing interest rates, what are types of companies to avoid buying stocks in Regards, Ron

Q: Hi,
Inflation came in hot again today in the U.S. Do you guys have a view of the dot plot? Some economists see the Fed hiking rates 5-6 times this year with a 50 BPS thrown in for good measure. Others see a less aggressive FED with 3-4 rate hikes.

Also, the renewable energy names all seem to be making a nice bottom in the past month or so. Could they be signaling that the rate hikes may now be baked into these names?
Thanks again.

Q: I expected a blood bath this am with CPI at 7.5% and 10 year hitting 2%. The reaction is surprisingly mild. Even ARKK is up! Your thoughts please.
In spite of your 'do nothing headline' I checked out in January. Thinking of averaging back in or waiting for the Fed in March. What would you suggest?
Thanks Peter.

Q: David Burrows is one of my favourite analysts. On BNN today, he indicated that he feels we have transitioned from a period of falling interest rates that has seen a few sectors, particularly commodities stocks, perform very poorly, while other sectors, particularly technology, have been bid up to very high levels. He believes we are into a new inflationary cycle that will greatly benefit different sectors in the long term, particularly commodities like metals and O & G stocks. He feels that money managers are using high priced technology and other similar stocks that worked in a deflationary environment as sources of cash and putting that money into sectors that will benefit from inflation, and that this could go on for years. Wondering what your take would be on this as a likelihood over the next several years.

Q: At the end of 2019 the U.S. 10 year yield was 1.92% and the Nasdaq closed at 8972.
Today the U.S. 10 year bond yield is 1.96% and the Nasdaq is up over 60% to 14,736
I realize that earnings have increased since the end of 2019 but I wonder in your opinion is the Nasdaq over priced and is due for a severe correction?j

Q: Hi 5i, what are the best sectors on the TSX to invest in now and the next 3 months and why? Thanks.

Q: I'm a little stuck on what I should do now. Sitting at around 5% cash. I'm a growth investor 10+ yrs. With the market backdrop currently posing a headwind for growth stocks, how long does this process/rotation usually play out? Months vs years? I'm holding some value stocks but definitely lean more towards growth. What would be some questions I should ask myself through this process before I allocate my cash? Do I add more to my value stocks to create a barbell strategy or keep nibbling away at growth stocks and ignore the short term market noise? I keep gravitating back to growth names during my searches. Thanks!

Q: In one of your answer of yesterday, you said: Right now, growth companies, relative to large companies, are the cheapest they have been in nearly 30 years.

Can you talk more about this fact and give examples please.

Thank you :)

Q: Hello,

How much is the market at risk if Russia invades Ukraine. Could we see a significant pullback and would you want to own a certain asset class to protect your portfolio from this geopolitical event.