Investment Q&A

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: Hi there,

I currently follow the BE Portfolio with a slight growth tilt. I have about 25 positions on, each starting with a 4% weighting. I have done very well few names such as SIS, SHOP, PBH, TOY etc. At what weighting would you recommend that I trim back positions?

Thanks!

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

Q: Given a ten year hold position and wanting a low risk option would you recommend a basket of quality ETF's or solid dividend producing stocks like Canadian banks. Thanks

Q: It appears to me that you favor diversification outside of Canada and the U.S., even though your primary recommendations cover the Canadian market. What would be your top recommendations for the emerging markets, India, China, Japan, Europe, etc ?

Q: I'm wondering if your service will keep members posted on the yield curve trends in the US?
I'm no economist. But many pundits are saying big trouble lies ahead: Short term rates increase, long term rates don't, curve flattens, recession hits, corporate bonds default massively, blood in the streets etc etc. I think I am a typical member, in that I have some confidence that I am building a portfolio that works for me ( with help from you). But I am lacking knowledge about the macro risks that could wipe me (us? ) out. Will 5i monitor and comment occasionally on this risk?

Q: Can you clarify one of your comment?
In inflationary times Canadian markets outperform
the USA market ! Why

Q: I've recently sold my holdings and am entirely in cash. I'm wondering whether I should wait for a correction and take advantage of some bargains or whether I'm better off getting my money invested and not worrying about marketing timing. I realize you cannot "crystal ball gaze" but I'm interested in your comments regarding staying in cash and waiting for an opportunity to present itself vs. getting back into a portfolio. Thank you.

Q: I am 10 years from retirement with no company pension.I have a good size RSP and TFSA along with an equal registered account.In your opinion what percentage of my portfolio should be in bonds and in what type of funds.I only see junk bond funds that are giving any kind of returns but risky while government bonds are only producing 1% returns.What does a guy like me do .I need 10 years of steady 5-6 percent returns to fund s decent retirement but can't bet the farm.I am currently invested in geographic diverse funds and some hedge funds.

Q: Can you reccomend an ETF or other instrument for short term cash (3 - 9 months).

Q: Reviewing my portfolio at this time of year,i have decided to take a more defensive approach for 2018.I have recently purchased a couple of gold stocks(aem & lk).I am unsure if gold still has the downside protection for a portfolio that it used to.
Also with the expected interest rate increases will dividend paying large caps have the desired benefit of portfolio protection?
Do you have any suggestions on some debt free dividend paying companies that will do well in a flat or slightly down market.I don't care if they are small,medium or large cap companies!

Q: I currently hold a very small position in Enbridge (1.5%) and a very large position in CDIC-guaranteed High Interest Savings Accounts (HISA's). I am retired and capital preservation has become important to me. HISA yields are about 1% while ENB yield is more than 5%. However, ENB dipped below $44 briefly this morning, which represents a 20% drop over the past year. Would you recommend switching some of my HISA's to ENB at this time to obtain a better yield?

Q: why do trailing stop loss orders sometimes not work and you find the stock has dropped below the price that you had set your trailing stop loss at. I appreciate your expertise. thanks

Q: I am hoping you can address this question ( I know it might be difficult to answer) in your comments you mention "you are comfortable good long term" is there anyway to define this .i.e. next 1, 2 or 3 year - I know no one has a crystal ball. Second point I have always used the philosophy if you get a bad quarter usually a concern "cockroach theory" time to move on and find something else especially if you are in the stock. So if you have companies that report a poor quarter - would you use this approach especially if you want to outperform the market (more of a earnings and price momentum style). Thanks.

Q: Could you provide, for the latest quarter, the ratio of beats and misses todate for both the US and Canada.
Earning and revenue if possible.
Thanks
Ed

Q: Hi everyone at 5i! I need a clarification about bonds. I have heard that bonds are facing head winds with the anticipated increase in interest rates. I have a portfolio of 60% stocks and 40% fixed. My fixed component consists of GICs, bonds, some preferreds and ETFs of XHY, CBO and CPD. These ETFs pay me a nice dividend monthly. My strategy is to invest my monthly dividend into the ETF that is lagging to get the greatest value for my dollar. Considering that the value of these ETFs may fall ( hopefully just in the short term) would you consider this an ok strategy or would you refrain from putting more money in bonds and preferreds. Cheers, Tamara

Q: Hello 5i,
Love the new website. you must have put a lot of work into it. Thank you very much for your efforts.
I have been concerned about what is often called the 'housing bubble" in Canada. I am certainly no expert but house prices to rent, to income, per capita gdp and just the general high degree of debt in our country.

Knowing that I am not an expert in this area I don't want to bet too heavily on this fear. So, I think I have found a solution and thought i would run it by you for your commentary.
I don't have a lot of real estate other than my own home. So I am not worried about that, I am going to live here anyway. But, it seems like the Canadian banks would be hit if there was a big drop. I don't know if you know of other industries which would be affected?
Now, I have about ten percent in fixed income and I think all of that is in US funds in a rrif. I thought I might shave off some of the banks and buy my fixed income in Canadian funds. Then I would invest all of my US funds in stocks.

The big problems with this plan, as I see it, are capital gains and especially hold ing my fixed income outside a registered account ( because this is where my banks are, from which I would be raising the money). Of course at todays rates the taxes on the fixed income outside the sheltered accounts wouldn't amount to that much anyway. I know that you speacilise in straight forward questions on stocks but I notice that you sometimes venture further afield and reply to questions of strategy. So, i hope I qualify for this latitude. There may be a few questions in here so take off the points necessary
thanks