Investment Q&A

Q: What caused stagflation in the 1970's? Do you think we are at risk of stagflation again?

Thanks,
Hans

Q: Ryan's report on SLF and MFC was very interesting and is a great explanation for why you prefer SLF. I got the impression that in the less likely event of equity markets moving more than 10% along with a 100BP move in interest rates, that MFC would do better than SLF. Is this correct (and why) and if so, can you estimate the probability of this scenario happening ? Also want to say that the addition of the name along with the stock symbol as the identifier for each question, is a helpful addition-thank you.

Q: Hello Peter,
What is your opinion today about the strength of the US economy? Do you still think the downturn will be over in a few weeks?
Thank you for your honesty, your integrity and your support.

Q: Advice please on weathering this first time correction or worse for a rookie DYI investor (not my day job.)

I appreciate your calming replies about the fundamentals of the economy and the companies you comment on.

I have made only a total of 6 or 7 buys this calendar year and 1 good buy GWO offsets a few poorly timed purchases HSE, TA, SGY AND WCP

IN TOTAL IF I SOLD IT ALL, I would break even today, bearing in mind this is all together only 5 to 10 % of portfolio, would you suggest

getting rid of it all and waiting 30 days (by the way if I sold for a loss today when is the 30 day limit for claiming a capital loss? )

OR waiting things out because my selections above are fundamentally sound and I have a long time horizon (> 10 yrs )

thank you for the support !

Q: I have read with interest how many of the comments during this downturn refer to selling positions now. It is very important for investors to realize and remember, that it is during these downturns that the "smart money" begins to buy, not sell; perhaps not today, but soon. A 10% correction will take the TSX to around 13150, the DOW to 15600 and the S&P to 1800 and that is when there will be bargains to be had. Don't sell during these times; re balance your equities and fixed income and get your cash back in...just a thought :)

Q: Carl Icahn shorts S & P 500. He has taken these measures to protect his stock portfolio. He says the correction is going to get worse. Do you think your 5i followers should hedge their portfolio and, if so, what products would we use? It is nice that I can get this info. from 5i. The people I know wouldn't be able to provide me with this information. Dennis

Q: long term investor catching my breath

anything other than market conditions to be concerned about here after a very big drop?

Thanks for all you do

Gord

Q: Are global growth concerns significant enough to derail this market. Should we sit tight or lighten up. Thanks.

Q: Please advise the % weightings of the various sectors in the TSE 300 & the S&P 500 and your current recommended % weighting in the various sectors of The TSE 300.
Thank you

Q: Hi , Do you think were heading for a Bear market and if so when do you think will be in one , the other day I read that we are currently in the eight inning of the Bull market how long will this last before the bear arrives.

Thanks

Q: The following have shown little change in the current correction. Is this the type of correction wherein the sellers will get around to worrying about these stocks/sectors, or does it look principally oriented to the energy sectors. Thanks
BPF.UN, VNR, ET.

Q: Hi Team,
I am getting very tempted to buy some stocks that have sold off(pembina, td bank etc...). I keep telling myself to be patient and wait for some evidence of buying however, there seems to be some good opportunities to at least start a position or add to an existing one.

Seeing this great clip from Warren Buffett is also influencing my decision (clip #4) http://thereformedbroker.com/2014/10/02/warren-buffetts-tv-appearance-october-2nd-2014/.
I am normally against averaging down, but I have noted that it can work well with GOOD QUALITY companies in case the correction still has legs. Anyways, could you and the team recommend how you handle the correction and give 2 names from each sector that look attractive for a long term investor.
Thanks again guys

Q: My cousin has never invested in the stock market. She has 100k and is thinking to invest in a portfolio of 20-30 different stocks now. Her time frame is 15-20 years. Understanding you don't have a crystal ball, what do you think of the timing?

Q: Hi folks: Would buying HIX (TSX 60 inverse ETF) be a good hedge against a market sell off at this time?

Q: Today, Reuters (Mike Dolan) published a piece "Financial Market Storm Brewing.." and the last paras stated:

"If investors are surprised by financial storm, it won't be because they weren't warned. Financial watchdogs have been waving a red flag about overstretched markets for the past year and stressed concerns again this month.

"There are increased signs of complacency in financial markets, in part reflecting search for yield amidst exceptionally accommodative monetary policies," the Bank governor Mark Carney said last week, citing conclusions of the G20's Financial Stability Board which he chairs.

"Volatility has become compressed and asset valuations stretched across a growing number of markets, increasing the risk of a sharp reversal."

Particularly because of Mark Carney's comments, this caught my attention. Any thoughts on how this might play out?

Q: Since we are having a correction, I need to free up some cash to buy stocks I have been waiting for to pull back. Do you recommend selling a partial position of a winning position or selling a losing position(precious metals of course).The new positions I want will help diversify my portfolio. I am tempted to sell the losing position. Also, could you guys give any recommendations on a course of action with this correction and any possible future outlook of the economy etc..... Or any nuggets of wisdom you wish to throw out there.
Thank you

Q: Waiting for an entry point on your A rated stocks. Held on to excess cash for this reason. Should I just go with A rated or lower? I know you don't like to time the market but what might be the turning point clue?

Q: The Russell 2000 index is now negative for the year and looks (to me) like a topping pattern. Is this likely to be an early warning?

Q: What's your view on what's going on in the markets today?

Q: Hi Peter and team,
If Scotland say YES on Thursday, how bad will affect us in Canada - Will TSX Index down 10-15% ?
Thank you for your great service to all members !
Regards,
Tak