Investment Q&A

Q: Good Afternoon,
Timely question I suppose with the market weakness today, I think the market is due for some weakness and volatility I'm not overly concerned by this. However, I am wondering what 5i's strategy going forward is in regards to the next recession?Perhaps we will find ourselves in a recession within the next few years, what will your strategy be for the B/E model? Can you see yourselves taking a more defensive stance , i.e raising cash, buying defensive sectors ( telecom, staples etc..) or just riding it out? I know the average recession is only about 9 months in duration.
Thanks very much.

Q: I currently have close to my target geographical weighting, but with the current (global) sell-off and cash in my portfolio I am thinking about going a bit overweight either Europe or Emerging Markets. In terms of value for new buying today, how would you rank Canada versus USA, Europe and Emerging Markets?

Q: Looking at the sell offs/drops on both sides of the border the last week, can you offer any advice? I have a long term outlook, and am ok with some risk. Do you see any stocks (on either side) the present a good buy at current levels that are likely to make a good rebound?

Thanks

Q: It's getting ugly out there. Any general comments about what to do (esp. if you like the gains you've had and don't want to see them just relentlessly evaporate?). I realize I've answered my own question but am still interested in any comments that come to your mind.

Q: Hi, is today a buying opportunity, or has there been some fundamental news regarding the markets causing this downward momentum? Can you comment please on latest remarks from IMF regarding global financial instability? Thanks

Q: How far are we to a tipping point in equities with the us T-Bills moving up.

Q: From today's Globe and Mail: Equity markets opened lower Thursday as global bond yields surged higher. Mehul Daya, an analyst from South Africa-based Nedbank, believes bond yields are approaching the “Rubicon level,”

“The JPM Global Bond yield, after being in a tight channel, has now begun to accelerate higher. There is scope for the JPM Global Bond yield to rise another 20- 30bps, close to 2.70%, which is the ‘Rubicon level’ for global financial markets, in our view. If the JPM Global Bond yield rises above 2.70%, the cost of global capital would rise further, unleashing another risk-off phase."

Normally, 'risk off' means purchasing the very stocks which perform badly during rising rates, ie. dividend stocks. That would not seem to make much sense here. What sectors do you believe would be most and least affected by these rising bond yields? I know it supposedly helps the banks and insurers but we have been hearing that all year without much sustained impact on their stock prices. So I'm uncertain where to put new money.

Q: Hi Peter, know as the nafta deal is over where do you see our Canadian $$ against US. $$$. Thanks Alnoor

Q: I sold dol recently. I'm down 8% on ccl and 5% on pbh. Both have been week lately which is driving crazy while the US markets grow. I'm tempted to sell these 2 and replace with ba, ita, grub.

Your thoughts please.

Q: How does the unwinding of the Fed's balance sheet impact the bond market?

Q: Thank you for your HUV recommendation. I am looking for a "short/bear" type ETF or stock to protect against downside. Would you suggest any strategy.

Q: Since the announcement of the new USMCA agreement I've noticed the Canadian market trending downwards, even the Balanced portfolio has taken a broad based hit from it. Any concerns you can see with the agreement that could be causing this distortion (while the US market rallies)? Or is this more sector specific?

Q: These tech stocks have been under pressure recently. Is a rotation out of the Tech sector underway. Thanks.

Q: Do you have any feel for what is going on with the TSX, one would think that resolution of the NAFTA issue would have settled down canadian markets but they seem to continue their downward movement. Thanks

Q: I know you've made sector percentage allocation recommendations in the past (always with caveats), but i can't seem to find them. So I apologize for what will no doubt be repetitive for you. What sector allocation percentages would you recommend for a retiree with no immediate needs for cash but needing to keep things pretty conservative due to advancing age and increasing health issues? I will keep your reply on file!

Q: The TSX appears to be shrugging off the US/Canada trade agreement without much interest, once again by far the worst performing north American index. Are you surprised at the lack of response? Would you expect much going forward or should money be moved into US markets?

Q: Feeling that Canadian stocks were due for a post NAFTA bounce, I am "all in " on Canada. My thinking is that while some companies and sectors will get an immediate boost, there is also a good chance that other Canadian companies, even ones that don't benefit too directly from NAFTA, will get another look over the medium (3 months to 1 year) term due to the improved stability of the investment environment. Obviously things can happen, but, in gneral, does this scneario make sense to you? Thank-you.

Q: Hi 5i Team,
At the recent Toronto Money Show, David Rosenberg advised that the leading indicators he monitors are showing signs of an economic slowdown. He advised people to become defensive. My question is what does he mean by defensive and how does a retail buy and hold investor do this. Would it be possible to give examples of defensive sectors and stocks?

Thanks and regards,
Danny

Q: Interest rates (as reflected in the 10 year U.S. T-bond) are up again today.
Canadian term deposit rates are at the same time starting to make me feel all pink and fuzzy. Over the last while I've started to build a ladder of rate reset preferred shares (5 yr with a floor) mixed with term deposits of varying durations, and at the same time moving slowly out of common stocks except for special situations. Good idea or too short-sighted?
(Full disclosure, I am very much a senior). Thank you.

Q: After the 2008 recession, which stocks/commodities made the quickest comeback. Also, which market US or Canada?