Investment Q&A

Q: The only thing that didnt go down with the rest of market was an asset class called Pensions. I believe the assets behind all pensions when south including the deterioration of the credit quality of the bonds held within .Is it possible that pension holders may feel the same pain as other asset holders?

Q: For investors with high level of cash and based on current information available, how would you deploy capital going forward?

If we experience another big drop in the coming days, would you advise waiting for more stability. I did buy stocks today but remembered that I bought in too early in the last downturn.

Thank you for the special report today. Much appreciated.

Q: We have a crisis and I am concerned .
I can’t get a fill with everyone heading for the exits at once .
Nobody in their right mind is buying .
We are in a bit of a helpless situation here .
I had never been so invested . I am underwater on Banks that I have held for years .My high fliers SHOP, LSPD, CSU ,AAPL, etc etc made me a wealthy man ( on paper) . I thought I was reasonably prepared , but I have held on too long. How do you see this recovering ?

Q: Hi, I have a bunch of cash looking to deploy in this carnage. I'm a bit underweight in international and emerging markets, however I'm a bit worried about putting new money into these markets compared to the US market when markets do bounce back. How would you recommend I deploy new $ into international, emerging markets, and US/CAD markets over the next few months?

Q: Looking to buy this morning. What do you think would be the least risky of sectors? Banks and telecoms look good to me.

Q: Peter; Would you consider this “ capitulation “?
Thanks

Rod

Q: It looks like stocks are going to be on sale this week.

Q: Dear 5i
Do all the US stock futures trade out of Tokyo ?
How does the trading of stock futures overseas affect the US and CDN markets (Indices ) ? If US stock futures are down then do the US stocks in the US markets start the next day down lower as a result of the Asian markets being down or do US stock values start off the next day where they left off the day before in the US markets ?
Hope this question makes sense . I'm trying to get a feel for applying a stop/loss on a stock so knowing how the futures markets affect opening North American prices is important to have an understanding of this .
Thanks
Bill C.

Q: What is your general "gut" feeling about this meltdown? If the Dow does not breech 25,000, does that indicate a bottom forming or do you see a prolonged period of share price damage?
No one doubts the seriousness of the virus, I wish they would call it the "new flu" as the present name sounds so ominous, but compared to the 20,000 plus who have died this season from the flu, it seems the media reporting "each case" is causing some serious panic both in life in general and in the markets. What is your overall assessment of the present conditions and can you take a stab at how long you think this will be so dominant in the news cycle. I guess when it's the second or third top story, it will be time to buy a lot!
Thanks.

Q: With the major down swings/upswings this last week or so, what type of investor are you seeing most active in the marketplace (and are we able to see this info publicly). Are these "mainly" the big institutional players unloading positions or loading up causing huge swings or is it the retail investor...or both
Also, are you seeing the majors starting to step in with more conviction on the dips?

Q: I was averaging in the market just before the correction and only deployed 35 % of the cash I had. Thanks to your advice in the past on that i was disciplined ( despite my emotions fighting the plan for months) . I feel like we have a great opportunity now.
Is it an average in - say 3- 5 % a week or see how it goes to catch an upward trend to and keep the gunpowder dry for now.
ps - II know you don't have crystal ball -just looking for a smart plan to execute - to keep my emotional investor guy under control

Q: Something that would be of enormous help to members currently buying stocks on dip (as opposed to ETF(s)) is a write-up that identifies companies (other than energy companies) that have balance sheets in a state where much lower sales for over a year could mean bankrupcies or share dilutions. I'm looking at forestry stocks, for example, and question what will happen if their sales go down 50%. Will they be able to pay their debts if this goes on 12-18 months? Even A&W, which appears on the surface to be a safe and boring income stock. What if sales go down 50% for a year, could franchise be under enough pressure to be forced to walk away? Buying a franchise is very expensive, afterall. I realize this could take time to write something like this, but no-one in the news is talking about the fact that some companies that need a minimum of sales before running in trouble with debt. Would appreciate your thoughts if you think this thesis is without merit. Thank you team!

Q: Nazim asked a question today that has been on my mind, "why hold stocks?" To follow up on your answer in which you opined that much of the downside may already have factored into prices, how can that be? The market is only down to levels it was at in the fall/summer. I am a long term investor but I moved to cash last week because of the risks. In weighing the potential downside risks (which could be huge) vs short term upside, why stay in the market? I just don't see how the effects of this virus will not be a lot worse than what has already been accounted for in the market. People are not going out, travelling, etc. and this must have a huge effect on the market going forward. Is this not a recipe for a recession? In which case, why not get out of the kitchen?

Q: how did low interest rates in japan affect there pension funds . did any get cut.or did employees have to pay more. thanks brian

Q: hi Ryan,
today market is 900points down again. at this stage which five stocks in US you prefer to jump in without any sector taking in consideration?
which sector you like the most?
Thank you,
KT

Q: Gey Guys,

I basically follow your balance portfolio and the stocks that I hold are between 2% to 6 %. Does it make sense in these unsure days to lower everything down to 3% and hold more cash?
Thanks
Jim

Q: Hello team.
Your thoughts about the interest rate and FX ( CAD/USD )move back home here after Fed cut half percent?
Really appreciate

Q: Hi Gang,

What are your thoughts on the FED rate cut just in? Which sectors do you see this helping and hurting?

Thanks!

Q: Good Morning,
Can I please get your general comments in regards to the rate cut and central bank reaction to the "worst week for stocks since 2008" followed by the "best day for stocks since 2009" It seems these headlines have taken over the decision makers, and more QE/ lower rates because the market has fallen to now Dec 2019 levels- from all time highs! BIG DEAL! There will be no where left to lower rates and so much debt on the government balance sheet when things do truly get ugly. As a young investor am I the only one that feels we should let the free markets play out before the fed steps in, or is this necessary to avoid a recession. It would appear there is really no risk in buying equities since as soon as they start to go lower central banks will prop everything back up

Q: Hi...just read your March 1 email....very timely. I have been evaluating some of my current equity holdings from the point of view of topping up some or all of them over time...to reach my asset allocation targets. I do a monthly review of all of my holdings using metrics like P/E, P/BV, P/CF, ROE, Beta, Analyst targets, charting vs 200 mda and higher highs-lows. Mid-Feb I raised roughly 5% cash (basically trimming oversized positions that also appeared to be stretched) and could direct it to the above list. I am a retired, dividend income investor.

The 4 BNN Market Call guests on Thursday-Friday indicated that legging in to this buying opportunity should be considered, as, in their opinion, the market is extremely oversold. In your past life as a Fund Manager, what metrics did you use to guide your process on whether to buy or sit on your hands? For example, "when the VIX is high, it is time to buy"...the VIX is now at 40.

If this is a fair question, could you rank the above 9 equities for topping up to existing positions? My process, for example, has identified LNF as one of the priorities.

Take as many credits as you think appropriate. Thanks...Steve