Investment Q&A

Q: I believe recently discussed a maneuver to exchange CAD to USD. Is that something I can do in a self directed I trade account?

It seems to me that if this is a dead cat bounce in the market and there is another test of lows that having USD would be a good hedge. What are your thoughts on the best currency to preserve capital?

Q: I am trying to understand what is going on with the market. While the drop that happened was expected the fall was exaggerated by virus implications. The market now seems to be back to where we were before the drop which by some accounts was overdone and ready for a fall. Yet now there are even more reasons for a storm to occur.
Please, any thoughts you have to make sense of this.
Thank You,
Peter

Q: Can you confirm my understanding of what is happening: Deflationary pressures based on lockdowns/economic slowdowns due to COVID-19 and Inflationary pressures based on bond purchases/stimulus from central banks around the world.

If this is relatively (and simplistically) correct, do we have a belief on which pressure will win out over time?

Q: What equities would you expect to perform well in a currency devaluation environment (large deficits funded by money printing)? Thanks.

Q: You have mentionned in the past that some of you at 5i are trading options during this time of high volatility, as i have bee, too. I am wondering what your prognosis of the coming months looks like. I have been getting scared of another leg down coming and am fearful of getting caught in Stocks that have fallen. That caution has been heightened by Buffet's ecision not to buy during this time, presumably because it is too uncertain. This may be a bit too broad of a question but i would be interested in knowing what you see on the horizon and what your take is of Buffet's apparent view of that smae horizon
Thanks

Q: Hi there,

I am considering opening a USD TFSA and converting it from CAD to USD using Norberts Gambit. It is a large sum and I was wondering if now would be a good time to do it or wait for the CAD to strengthen. Do you think there will be a better opportunity in the next few months or would you be comfortable doing it today?

Thanks!

Q: Good Morning 5i Team,

Employment numbers are coming out tomorrow and they will be dramatic.

Do you have any thoughts on how the unprecedented job loss reports might effect the markets?

Thanks for all you do

gm

Q: From your prespective does the huge difference in P/E in canada vs the SP 12.8 vs 20+ represent a buying opportunity for canada or does it reflect the market difference ie the greater resource content in the tsx.

Q: In one of your questions you said it looks as though the worst of the pandemic is over. Just wondering from a financial perspective why you would have this take.

Thanks

Q: What do you think of this etf as a hedge to the market ?

Q: What did you think of the earnings report of BRK.B? What do you think about Warren Buffets comments?

Interested to know what your thoughts of this market moving foward (e.g. re-test the lows in March, low downward drag, best to continue to buy small and steady over time, sell anything that might have been bought too high at the rally)? I ask this question as I assume all your subscribers are wondering as these markets are difficult to navigate.

Thanks so much for your fantastic service. Best investment decision I have ever made. Hope you and yours remain safe and healthy.

Q: Over the weekend, Warren Buffet is going to addressing his fans and no doubt all of the investment community is anxious to hear his views. I have no doubt he must be quite nervous for he and Charlie Munger since they are both in the late 80's . None the less , he will probably say some soothing words and it may give the market a bit of a boost, but how long it will hold is anyone's guess. As the economy reopens as early as next week, I think the "market" is going to feel better.

Q: I've been in the market for about ten years. During that time a certain predictability has emerged in what sorts of stocks get most heavily hit during market routs such as today's., and what sorts of stocks are least damaged. That predictability has disappeared since February. In fact, when the market drops down heavily the stocks most likely to be hit hardest are the ones which used to be hit least, like utilities, REITs, banks, and other dividend stocks. Do you have an explanation for this? Shouldn't the low interest rates which make bonds unattractive protect these stocks to some extent?

Q: Hello Peter,
The quarter beginning January is generally good for the market and this year was no exception until the time global economy was paralyzed by covid19. Now we are in May the time for sell and go away. Besides, history would suggest that the recovery does not happen in a straight line. I would like to know what probability you would give for a correction next couple of weeks, before /after the earnings season ends.
The recovery is usually led by large cap which has largely been the case and recently the small caps are showing signs of life as evidenced by the ETF IWO. I am fully invested participating in the recovery and here is the dilemma. Do I stay the course or should I trade the swing if there is a say a 70 percent or more probability of a correction happening soon. And I am not trying to be exact but reasonably close; and could do with your experience and expert opinion on this. And should I raise cash from large caps or the smaller growth stocks, almost all in the tech sector and in the USA. Both will recover eventually but which group would be primed for a trade if that is the route to go.
Thanking you in advance.
Rajiv

Q: I put a bunch of new money into my various holdings after some of the big market drops. I did miss the bottom and have just come into quite a bit more cash. Would you be deploying now after the recent gains, or do you have reason to believe there will be another sell of and decline? I have a tough time thinking the crisis is over, and if the stock market is just going to go up from here that really means the entire world overreacted doesn't it?

Q: Hello Team
I am hearing different comments, and one from David Rosenberg in particular, suggesting it is quite possible to see a 60cent dollar in the not too distant future and I would appreciate your thoughts. Further to this personally I feel that the markets seem to be going through a period of "irrational exuberance" and personally I feel we are only at the beginning of what is to come in terms of a downturn in the Canadian economy. With this in mind, what would your thought be of changing some Canadian dollars in my accounts to US dollars for investment purposes. I would also consider using a US ETF such as GLD to play the rising gold stocks. Appreciate your thoughts

Q: opinion question, the markets seem to be bouncing back.

What is your opinion on the market bottom having been reached?
What are the 3 biggest variables to affect the canadian markets in the next 6 to 12 months?

Q: This is a wild market which has rebounded well beyond my expectations since the March 23rd lows. Do you subscribe to this resurgence which seems at odds with reality? I know the market looks forward but, geez this is really optimistic...
What do you think?
Thank you.

Q: Good morning guys:
In layman’s term to an average Joe investor, what is going on here ? Why are the markets going north with the economy in a pandemic. I can see the stock market going south real quickly . Can I get your expert opinion on what’s taking place here..
thank you for doing such a great job during this difficult time for all clients
Mark

Q: I am hearing Depression more than a recession. Which one is worse in your opinion. When was the last depression?
Which sector does well in each scenario.

Thanks for the great service.