Investment Q&A

Q: My portfolio is 50% U.S; 20% Asia; 30% CAN; I was waiting for the NAFTA negotiations to lower the CAN dollar at which time I would repatriate some cash from the U.S. To CAN.....however with the strong commodity market of late the CAN dollar is surging........should I wait or repatriate now? Just looking for another opinion...... Thank you!

Q: Could you tell me what was the TSX total market return (including dividends) in 2017? Thank you for the great service.

Q: Norman Rothery recently wrote an article regarding the CAPE ratio. He indicated that the CAPE was above 32 where as the median value is aprox. 16 implying that a S&P market correction of 50% would be needed to bring the market down to its median value. The article was very convincing as are all his articles, they seem to very well researched and well presented. Could you comment on this CAPE ratio and how much faith would you put it. Thanks Ron

Q: Why the small cap sector has been lagging for the last 6 years. Its been underperforming for a long time. Also, why the millennials are not interested in his sector. I just do not understand why the sector is so unloved.

Last question, what is the difference between the US small cap vs Canada small cap.

Thank you in advance for your comments.

Norwood

Q: Happy New Year,
I have read recent media reports suggesting that the investment world views Canada as the primary listing location for many speculative "Cannabis" and "Blockchain" companies and that this is hurting overall investment in Canada and the TSX/Venture exchanges.

Any views on this perception?

Robert

Q: ...lofty US markets, tax cuts, presumed higher growth, greater chance of more interest rate hikes....would you put new money into the american market and what changes, if any, would you suggest to equity/fixed income allocations for the short to medium term? Thanks.

Q: Good morning Peter and company,

In his will, for his wife's benefits, Warren Buffett has instructed the trustee to put 10% of the money in short-term government bonds and 90% in a very low-cost S&P 500 index fund such as Vanguard’s.

Would that be a good practice for all retired individuals living off their stock portfolios by withdrawing 4% annually, if they are prepared to live with the market's fluctuations?

Bond values have nowhere to go but down as central banks raise interest rates. Would 10% cash be better than 10% bonds today?

Thank you for your considerate answers to my questions.

Milan

Q: What do you think will be the go to sectors or top sectors for 2018

Q: Hello,
Considering the significant run up that has taken place, would you recommend getting into the American market at this point?

Q: It looks like the year is going to finish with a lot of happy people. I'm not asking for a prediction but is this movement cyclical and if so what generally happens as the cycle progresses in the next few months?
I would like to thank 5i and all the question askers, I am learning every day with the many points of view.
Peter

Q: Hi - I believe we are at or near a top in all North American Markets - I am looking for ETF's or Individual stocks that will do well in a correction - What is your recommendation in 1) Canadian Equity, 2) REITS 3) Consumer / Staples 4) Commodities - thanks

Q: Marijuana and blockchain stocks seem to be soaking up most of the small cap/microcap dollars. As a result, a number of quite cheap stocks not in those sectors are being ignored. Do you think there is anything to this thesis?

Q: I have $500k in cash to invest. Getting into the market with current economy and market conditions is hard for me to do. I have asked around at other firms and of course the answer has always been "Get in now. why wait", but I believe that they are biased because they will make their fees from me even if I lose money during a market correction.

As an example I did some back calculations using a tool on Steadyhand's web page and the rate of return from 2007 to 2016 compared to 2008 to 2016 is significantly different. By waiting one year the annual ROR changes by almost 100% (5% 2007-2016, 11% 2008-2016). It is interesting how nobody ever talks about this.

I would like to wait until the market correction happens, whenever that may be, but I need some unbiased advice.

I realize that this question has probably been asked before but I think that the answer to this question has to take into account current conditions and where the market is compared to historical norms and averages.

If I was using one of the 5i portfolios it would be the Income portfolio.

Q: Just a comment about the 'dot-com bubble' worry, if I may. I remember that there was a legitimate craze happening at that time. Any company that had a .com at the end of its name took off to astronomical prices based on nothing - no revenue, no customers, no book value. The tech companies we're talking about now are real, and it looks to me like they're riding a secular wave of demand for computing power related to real growth areas like AI, data centers, machine learning, virtual reality, and cloud computing. Granted, this won't last forever, and it's an open question as to how long they can grow at current rates, but at least you're not investing in thin air like the crowd was doing back in the 00's.

Q: Where can I get the TSE yield and price per earnings as the Report on Business, Globe and Mail no longer provides this info?
Tax loss selling-Is it 30 calendar days or 30 trading days before you can repurchase?

Q: Will these Canadian companies greatly benefit from the US tax cuts and would your recommend any or all of them as buys at this time Are the other Canadian companies you would prefer. Thanks for your terrific service.

Q: It seems to me that the ability to pass tax reform in the US is a significant event. Could you please comment on the impact of this event with respect to market valuation as well as benefiting sectors.

Q: Markets have been pulling back the last few days. Do you attribute this to tax loss selling or something else? When would you suggest deploying cash?

Q: I am in my 30's and have a fairly diversified portfolio both geographically and by sector. Currently i own 100% equities with roughly a 70/30 split of growth to value companies. This money is for retirement and i don't plan on touching it for the unforeseeable future. I don't want to do anything drastic but i would like to get slightly more defensive going into next year. The bubbles i see in cannabis/bitcoin at the moment as well as i see many friends/family who normally don't invest or talk about investing starting to put money into the market (mostly in weed/bitcoin stocks) scares me slightly and i feel we could have a minor or slightly larger pullback at any time. Which of the following would you suggest. Add a 10% weighting in fixed income? Trim some of my growth winners (TOY,KXS,SHOP,etc) and add to some of my value names (XTC,OTC,WPK,etc)? Trim some winners to have my cash position move from 5% to 10-12% and add to positions when i see more value? I realize these can be personal questions but i am looking for your feedback anyways.

Q: Good afternoon 5i. I own the following stocks. Today there`s been talk about possible sector rotation of funds going from tech to financials. The Nasdaq is down 1.3% today. My portfolio stands as of right now at 22% tech and 15% financials. Would you recommend I leave my portfolio as is or should I lean more towards financials going forward?

Thx/Rob