Investment Q&A

Q: Looks like the markets are liking the financial aid packages approved in the last day or two but do you think that this bounce is warranted? Would you start deploying cash here in both the Canadian and US markets or wait for less volatility? What does your experience tell you? Thanks.

Q: During this downturn in the market I believe 5i said it could be a V recovery. At the rate we are going we should be back to normal very shortly. I read 5i questions and write a lot of answers pertaining to me over the years. Do you see this recovery going at this rate or will there be a noticeable pullback? Thanks Dennis I really rely on your service

Q: What is the one stock you would suggest to go all in with this correction?

Q: Re: Article appearing today. I have never agreed with David Rosenberg. This time I think he might be right. What would you place the odds of his view of the market proving correct?

Q: I know currency's are very difficult to forecast. However, I will ask this question anyway.
With the CDN $ hovering around $.068 do you recommend taking hedges off or leaving them on ?

Q: I'm thinking of switching etf's, selling VGG and buying VSP to take advantage of tax loss selling (VGG) and also buying into a CAN dollar hedged fund as the CAN dollar has taken a beating lately and should rebound looking forward, appreciate your professional opinion? Thank you!

Q: Want to get your opinion of what’s happening in the market today? Fear of missing out rally? Did you expect stimulus package in U.S. to create this much optimism when the virus is still spreading like wildfire in places like New York?

Q: Do you think we've seen the bottom now that the USA is close to a stimulus deal (as of writing today). I was wondering whether that stimulus announcement will be the last bit of good news for awhile. I'm trying to decide whether to wait for further lows which seems to be what everyone was calling for or whether to go in with a part position now. Your thoughts today on the stimulus deal and what may be to come would be appreciated. Thank you.

Q: David Rosenburg said on BNN: "I think that in short order we have all gone from talking about a recession to a steep recession, and now I think that we are talking about some form of Economic Depression, which might not have a formal definition, but it is a steep plunge in economic activity over a period of time, and then coupled with a very abnormally weak recovery."
The market is very spooked. Can I get your reaction/opinion, please.

Carl

Q: Lots has happened since your March 9 special report. Which ones are now your favorites?
Any other names you find interesting or sectors to avoid at the present time?
Thank you,

Q: I have asked a question today and here is another question that is related and comes with the same caveat that i do not know much about bonds/debt/fixed income; beyond the basics.
From what i saw on TV, the selloff in equities would force pensions to sell debt.That should depress the corporate debt prices? The central banks would buy mortgage backed securities. Who would purchase corporate debt, specially high yield? Would that also make the fixed income bonds issued by canadian banks more attractive(cheaper)? Would it also indicate that equity selloff is near bottom or reached bottom?
Would you prefer to buy bonds/debt or equity when there is a little stability? And could you please suggest some?
Thanks.

Q: What do you estimate the remaining decline in the market will be? I have read that the decline could be between 10 to 50 percent. Also, what do you think the market will end up at the end of the year?
Clayton

Q: What is your opinion on the $1 trillion+ stimulus and the Covid19 impact on the economy in the next few months or longer? What happens if the general lockdown last a few months? Any chance that it is not as big of a story than reported by the media? I had to drive out of town on Friday and I listened to CNBC for 2 hours. It was so negative I had to turn it off. Is it just me or are they trying to scare people? Thank you for your general comments.

Q: Considering buying US large caps ETF when things turn more positive.
To hedge or not to hedge with the Cdn$ having fallen so much largely but not only because of the Russia/Saudi war on the price of oil - which will get resoved. I understand under normal circumstances your preference for not hedging.
Thanks for your great service especially during these uncomfortable times.

Q: Just read your March 17 Stock Market Update article regarding "Where is the bottom???" and the bear Market histories. Very enlightening.

I have been almost entirely in cash for over a month now and noted your portfolio changes. You mentioned Adding a new 4% position of BMO Equal Weight REITs ETF (ZRE) in the Income Portfolio. ZRE has been very steady since inception in 2010 gaining almost 40% over that time period until the recent unprecedented and understandable 37% drop since Jan 31.

My question is where should we park our cash while we wait out this terrible situation? Should we just leave it as cash? Is the BMO ETF a suggestion for a short term hold? I did read your Trade Rationale and was a little confused by your comment "remove some of the 'tail risks' that might be seen if there are issues at any individual company." Am I right in thinking this is in reference to ZRE being an ETF? Apologies for my ignorance.

Thanks for all you do

gm

Q: I seem to remember in past recessions that I was able to buy bonds of troubled companies like Air Canada and GM with yields in excess of 12%. I just looked on TD WebBroker and AC bonds are YTM 3.5%! No thanks! Definitely doesn't sound like a good risk reward, and there were many other companies with still 'normal' looking yields. Any thoughts on when bonds will be re-rated (or not)? Even the energy sector at some point should be yielding much much higher, with better risk profile than equities.
Alternatively, I always hear that the bond market is smarter than the equity market. Could this be a sign that equity markets have over-reacted? Thanks for all your good work!

Q: Hi,

Could I get your opinion on 2 investment paths contemplating at moment for equity portion of portfolio?

At moment my equity exposure is passively invested in IWO, VGG, VIU, VEE. I am trying to decide if I should sell off this passive postion, in part or entirety, and invest in individual beaten up securities, for example a number from your recent reports for North American exposure.

The objective would be to have a higher return 2-3 years out from this market. Not really concerned with volatility.

Thanks

Q: On Sunday, PBS Wealthtrack aired an interview with a well seasoned advisor, R. Kessler, who recommended to raise cash as the damage to the stock market will get worse before it gets better due to a severe recession etc. His case made a lot of sense, and I would be interested in your comments on this statement.

Thank you!

Q: Assuming this downtrend will bottom at some point, and eventually recover, in your opinion, which three sectors offer the best chance of minimum damage in any downturn, and the best chance to recover sooner rather than later in an upturn. Could you name and rank (best first), 3 dividend stocks in each sector that you feel will survive the downturn and lead the way in recovering in each of the three sectors. Thank you. Warren

Q: I am an 88 year old, investing for over 70 years, and an appreciative member of 5i since inception. My present objectives include creating capital losses; reducing my formerly 80 stock non-registered portfolio to only those in your Balanced Portfolio; thereby making my life easier so that I do not concern myself each day with fluctuations, and let you make the decisions;etc., I believe I have the following options; 1) Sell all present losers; 2) Henceforth buy or sell only stocks in the Balanced Portfolio 3) Where the 30 day rule applies, buy comparative stocks for the 30 days).. What is your opinion? Do you have better proposals in view of the present crisis? Thank you in advance for your usual consideration and advice.