Investment Q&A

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?

Q: It appears that sometime in the medium to long term future the majority of the vehicles on the road will be electric. My question is, with the stock market being forward looking, at what point does this start to affect oil related stocks. Maybe it has started to affect them now. I have heard a few people say they are staying away from oil now because of this. I know there are a lot of factors on this topic but I would appreciate your educated guess.

Q: I just read the report by Eric Lascelles and the team of economists at RBC (Sept 7/18).They give a 1% probability to a modernized NAFTA that produces positive economic outcomes. All the other scenarios are negative with the highest probability (35%) given to the US getting all their demands with of course negative economic effects for all parties. Given this, a sane person has to wonder why we are even discussing changing NAFTA. As investors though, are we better to ignore all of this and assume well managed Canadian companies will adjust and emerge competitive once they know the new rules, or should we try to be more proactive. I am assuming you lean toward the former.
Your thoughts are appreciated.
Mike

Q: Re:your answer to Johns question of august 27th. 10 pick of best company's to best weather a correction. Would you consider a portfolio of 30% pmif and 70% these 10 picks at 5% each to be a decent portfolio no matter an iminent significant correction is at hand or not or would you tweek it in some way. Thank you kindly. Larry

Q: Hello Peter / Ryan
Generally speaking, is there anything out there that really worries you about the way the economy is currently or where it is headed ? On the whole, you seem optimistic / upbeat and I'm wondering what it takes to shake you up and make you nervous. Just curious.

Thanks

Q: What are your top 5 recommended stocks (in order of preference) that would do the survive the best through a recession?

Q: Still sitting on some american money, trade deals seem to falling in place, obviously a positive, but election coming up, if Trump does lose the house, what is your opinion on how the market will react to that?, and would now be a time to invest in a U S A core portfolio or any advice would be appreciated
Thanks

Q: Preferred Shares: How to evaluate risk? How have blue chip preferred shares behaved during previous massive downturns such as 1987 and 2008? Have they gone down as much as regular shares? Thank you for your fine service.

Q: In the past, when asked what the optimal geographic allocation is for the 'typical' Canadian investor with a long time horizon, 5i has variably replied 50/30/20 Cdn/US/Intl and 50/40/10 Cdn/US/Intl. Does this answer change if one considers the Canadian 'dividend-focused' investor, where the dividend tax credit would be a significant consideration? For this type of investor, would a higher allocation to Canadian equities be acceptable/preferable? If so, what would you consider to be a prudent 'upper limit' (percentage-wise) for the Canadian portion of one's total equity exposure? How would you allocate the balance between US and Intl. equities? Thank you.

Q: What are your top 10 defensive canadian stocks that, in your opinion, will best weather a significant economic downturn and/or market correction.
Thanks

Q: Russia has sold most of its US Treasuries and is buying gold hand over fist. Putin is not a nice guy, not stupid either.
Trump is making everything more expensive for people in America with his trade war, and other countries are retaliating, could this is help drive inflation?
The stagflation every one was on about did not materialize because our consumer oriented economies responded to the central banks band aid.
Inflation did not happen as it "should" have after the 2008 crash because interest rates are artificially held down and "money" was printed like it was going out of style.
I feel like the past ten years of bull market maybe be the mother of all "dead cat bounces" and the piper is yet to be paid.
I also wonder if the inflation numbers are artificially low/lagging?
Makes me think I should sell the investment properties and buy more gold or gold mining stocks that would normally be acceptable.
Opinion?
Please take as many questions as you see fit.

Q: Hi guys,
Given the strong suggestions Trump will carry through with his threat for a 25% tariff on Canadian autos next month, and the rock solid guarantee this would lead to a huge drop in the Canadian markets, would you delay new investments in Canadian companies for a bit?

Q: A lot of forecasters are saying that we in the later stages of the rally. Is the Materials index usually stronger in the latter part?

Q: Not all that long ago this stock was in the mid 60's and just falls everyday, sometimes as much as 5% in one day. Do you still like this stock? Have you any idea what the problem is with it? On the Canadian side, seems like pretty well all of the Canadian stocks are falling. BBD.B went from $550 to $450 then back up to $525 and then back down to $445. Is this going to do what it did in the past, causing people who got involved with it to lose a bundle? Thanks, Dennis

Q: How do you expect markets will react if the Democrats take control of both houses in the upcoming elections?