Investment Q&A

Q: https://www.cnbc.com/2019/08/26/lehman-like-drop-nomuras-masanari-takada-warns-it-could-happen-in-a-week.html Please comment on attached article.Thanks for u usual services & views

Q: Hi 5i team, do you have any advice if US China trade war escalating ? Which Canadian sectors will be less damaging and which sectors will be affected most?

Q: If we are headed to zero / negative interest rates, I am thinking of playing this thesis by purchasing XLB to capture the capital gain on the interest rate reduction and XGD should do well in a low / negative rate environment. The balance of the portfolio is VBAL and XEG. What do you think? Thank you

Q: I am retired and wish to structure a conservative portfolio consider the uncertainty of the economy. I favour banks (RY, TD), utilities (Fortis and Algonquin) and Telecoms (BCE and Telus), BrookMiled Asset Management, Brookfield Renewable and Brookfield Infrastructure Microsoft and Berkshire B.

I would lik´to have 40% in bonds and favourCLF, XBB, XSB and XSH. I would move from FTB even though it has a higher yield but a higher MER.

Your comment would be appreciated.

Thank you.

Donald

Q: I have 5-8% (20%total) positions on these utility type stocks; if we enter a melt-up type scenario in the markets? Would it be prudent to reduce my utility type exposure by selling 1/2 positions and invest in growth type names like Vtv, vfv, etc.? Or would it be in my best interest to hold steady and ride the curve and collect dividends, I'm approaching 70 years of age? Thank you!

Q: I would appreciate your opinion as to why you think interest rates are falling around the world and what is the implication of the underlying issues for equity investors? What would be the best/worst sectors to be invested in this environment?
I appreciate the high quality work you do at 5i.

Thanks

Q: What conditions in Canada would need to change to cause a significant upward trend in the Canadian dollar? Thanks.

Q: Market Outlook

I realize that I am asking for an opinion and will take it that way.

I have some cash that could be invested, but am not sure when to buy in. (financial sector is what interests me the most.)

Based on your decades of experience how would you decide on when the present down ward slide is near bottom. Please provide your top 5 indicators that there is "blood in the street" and could be a time for buying.

thanks

Ernie

Q: If a recession is upon us, would it be better to lighten up on bank stocks at this time. I'm at about 30% in total weight when I combine all my accounts due to the stock splits and DRIPS. Thinking about selling some and buying some Emera and BAM.A and adding to BEP.UN, AQN and TRP. Would a gold stock like AEM or FNV be suitable at this time ? Your opinion is greatly appreciated.
Thanks

Q: What would consider as a few "relatively" good names to own thru a recession if we are in/approaching one? Would SIS qualify?

Q: Hi 5i - I'm retired now and am wondering what your percentage recco would be for Stocks, ETF's, Index Funds and Bonds in the overall portfolio. Hope you can give me your insight! Thx!

Q: #1. Are there any key indicators that would suggest a recession ?
#2. Would it be a good idea for an investor to get out of the market and buy back in later, thinking there will be a recession soon and a downward stock market.

Q: I have been rebalancing my portfolio over the past six months, reducing financials and energy and increasing utilities, telecoms, and US technologies ( all in companies you have been positive towards). I remain overweight financials, with Canadian Banks and insurers. I do have a very long term horizon, say 25 years, so if history and my nerve holds, my wife and I should have the desired dividend stream and a decent shot a capital gains over time. However, after reading yet another “we’re all gonna die” column from Dave Rosenberg, it made me wonder if I shouldn’t continue my shift and sell down more financials and increase in sectors with strong dividends that might better weather the storms that may or may not be imminent. What are your thoughts?
As always, I value your opinions. Thank. You.

Q: I read with great concern in this weekend's National Post, David Rosenberg's article entitled "10 Reasons to take risk off the table right now". He makes ten legitimate reasons to do so. I would appreciate 5I's opinion of the article and his supporting logic. My high risk equities are WEF, NFI, TSGI, MX, COV and VET.
Carl.

Q: In reference to my last question you made a couple of suggestions. I parted ways with CHR and NFI. You also suggested that I lacked diversification in some areas. I have accumulated cash since my last question to be deployed at an appropriate time. I have listed again the stocks in which I am currently invested in. Percentage allocation in each was listed in my last question. I have wonder if you maintain an investment profile of your clients. Doing so would enable you to provide more appropriate advice and/or suggestions. It would negate the need for clients to keep repeating investment objectives. Thanks

Q: In your recent market analysis you noted the $13trillion in negative interest bonds as a positive. Presumably the assumption is this money would move to equities for better returns. The most recent report shows the $13 trillion is now over $15 trilllion. Also central banks are cutting interest rates. Does this change your outlook at all?
Many thanks.
Mike

Q: What is your opinion on shorting the tsx

Q: Hi Peter

You recently wrote an article about investing versus gambling which neatly explained why investing was not gambling. I had no issue with your explanation, but must admit that lately I am concerned that investing is starting to feel more and more like gambling. You just do not know what Trump is going to Tweet or do next. China’s reactions are another issue. I am not confident that Trump fully understands what he is doing. Case in point , his remarks that China is adding all kings of money into the US Treasury due to the tariffs he is imposing. Look at the reactions to his plan to impose further tariffs on China and subsequent devaluation of the Chinese currency. You just do not know what he will do next. But it does look like China is digging in for along term battle. Your comments please. Uncertainty is extremely high now. So why not sell most equity investments and move to the sidelines?

Q: I know diversification helps but am looking for some recommended investments and strategies that might weather a correction better than others.

Q: I read comments that go like this..... Trump wants a rate cut so he can play hardball on trade wars......but how do Federal rate interest cuts do this? I'm like walking in the woods on this.......Tom