Investment Q&A

Q: would you recomend sitting on some cash at the present time?
At the turn of the year most experts seemed positive on both the Canadian and U.S. markets. Now there is a significant number of the same people calling for a general, large, pullback. Self fulfilling prophecy, perhaps?

Q: What would you pick to be the top growth sectors in the TSX this year? Thanks!

Q: Hello 5i,
My question relates to asset allocation (between fixed income and equities) etc.
There are a variety of suggested formulas for determining how this allocation
should be made, most based on factors like age, health, income etc.
Examples include (100 - age = % to allocate to stocks) or
(age x decimal of age = % to allocate to fixed income). There are many others too.
My questions are :
1. Is there a formula that you would recommend
2. In a situation where a couple have non-registered Joint CA$ and Joint US$ accounts,
as well as separate RRSP accounts, should this allocation be applied to each of these accounts,
(or only at the total of all accounts level).
And for the non-reg. Joint accounts, how would you handle an age difference of > 6 years ?
Thanks very much, your advice is greatly appreciated.

Q: Some think that 2014 will be the year for the Cdn stk mkt to shine. If you agree, what sectors would be best and what mutual fund(s) would best cover these? (I have mainly stocks in my accounts that are similar to you model, but am trying to get back to a few good mfs as well.) Thanks for you help. Alan

Q: Hello team, thanks for the well reasoned reply to my AYA question. I am thinking it may be time to add an industrial mining company to my portfolio, like a VALE for iron ore or TCK or FM in the coal or copper space. I have no miner exposure presently. Your only miner is in gold. What would you do here? Are you tempted to add one to your portfolio as a value play on eventual global recovery to include these stocks. Many thanks.

Q: Do you currently see markets as over bought? If not, where would you put new money? Thanks.

Q: Hi Peter and Team,
Can you recommend a manufacturing stock or any other stock that should prosper from the lowering Canadian dollar?

Q: Hi Peter and gang, I would like your opinion of Peter Schiff of Euro Pacific Capital. Especially his views of a financial future for the United States that falls somewhere between bad and terrible. I know that it is hard to contemplate an apocalypse but like they say, "Just because you're paranoid, doesn't mean they're not after you."

Q: Hello Peter, keeping in mind the long term and maintaining a balanced 20 stock portfolio closely mirroring the 5i Model portfolio is it advisable to add some US exposure of 10 to 15 % to the portfolio presently?
In the question answer section of 5i the following ETF’s SPY, IWO, and VIG seen to be the choice. For the long term would you suggest 3 equal parts of the above ETF’s or go mostly for the growth potential of small caps and recommended only IWO? Thank you for providing such great insight, Ronald

Q: re......deflation. I feel it is a possibility we may see real deflation where I live subject to the US dollar question of course. I am not worried about it from a local point of view but from a Canadian Macro economic point of view if it got going it could be worrisome. I believe we would have lots of notice with time to have some form of plan ready to go so to not have one is just plain crazy. But I can only find blank faces when I ask for opinions. Since I am convinced I must stay invested, I is moving to consumer staples a reasonable move? What moves might the bank of Canada do? Who is a deflation guru with an answer?
Is there a place to hide?
Thanks very much

Q: Hello 5I Team: I currently hold XTR & CIG686 for retirement income. If they comprise 50% of core portfolio and therefore both at about a 55% holding of bonds make up about 27% of portfolio, would you consider these types of bonds suitable for risk diversification? I also keep some cash and GICs in addition to core which amount to about 15% of core. Thank you, Larry.

Q: Peter,

With a weaker CAD, which companies do you think will benefit from rising USD and have Canadian based expenses?

Thanks,
Zach

Q: With the Canadian dollar down what areas do you feel benefit-any specific canadian stocks for example.

Q: I have 5600.00 to invest in my TFSA. Currently have these holdings with following % of total portf.: AW.UN (19.5%); BYD.UN (22.6%); CGX (15.2%); DH (12.5%); FRU (17%) & IPL (13%). I am 61 years old and retired. My focus is preservation of capital, safe dividend paying stocks and some growth. Could you suggest what would you consider appropriate to add (or replace) to my TFSA given my focus and what is already in this portfolio.

Thanks,
Joseph

Q: Hi What would happen if the us dollar droped substantially and created hyperinflation? What would the effect be to the canadian dollar and market? Would gold and silver go up and would it be better to hold the equities or the physical commodities?

Q: Have just renewed. Thank you for such sound advice. I have been financially " guiding" my employed 38 year old daughter for some time. She has $20,000 to place in a non registered account and about$15,000 cash in her TFSA . I have been keeping notes from your Q & A, your portfolio and other research. In her non registered, she has XDV;XIU and a dividend mutual fund. Feel free to suggest weightings , long term horizon, which of the following would you suggest for non registered and TFSA (Or as you like, make any substitutions):
BCE; CGX; BNS; SLF;PWF;T; CBO; BEP.UN; IWO.
Thanks for your input.
Paul

Q: Hi Peter and Crew,

I am a totally pleased member and have just early-extended my member ship for another 2 years. I am also a low-volume question submitter and gleen my information from the questions of others and the model portfolio and reports.

My question is a general one. 5I has made excellent recommendations (companies, funds) and strategies (inaugural and then increasing dividends) and provided great supporting information ... in a Bull market. I think I can express the feelings of many of us that the results have been very good and that we might be feeling a bit bullet-proof.

This bull will end - they all do. Might be gradual, might be abrupt.

Can you offer any insight, at this time, as to how you might change recommendations, approaches and/or the model portfolio as we enter and pass through a bear market.

Thanks again for your great service.

Q: Thanks so much for your great service and all the best for 2014 as you gain momentum which is the theme of my question. I have noticed that you often mention your appreciation for 'momentum' and I wonder how one identifies this quality in a timely way. For example, I missed out on BAD since I was waiting for a pullback that never came, and I have some Y and Y.WT arising from a bad investment in a preferred of the old Yellow Pages, and these have had tremendous momentum recently (8.66 on May1 to 21 now). Again, I didn't add to my meagre holdings, but it would have been wise to do so, in retrospect. In short, I wonder if there are ideas on how to assess this fairly common phenomenon of watching a stock continue to rise, knowing, of course, that it will end sometime. Perhaps the short answer is that i should ask you as soon as I notice such movement! But I wonder if you have particular guidelines that you follow is assessing whether it is 'a bit late' to join the party, or not too late. Thanks.

Bob.

Q: Hi 5i - thanks for everything in 2013, success to you and all members in 2014.
Sorry if this is repetitive - maybe need more links for these categories - What are ur best 5 stock picks for growth and 5 best for dividend in 2014.
Tks.

Q: Hello,

I have a portion of my savings sitting in savings accounts at Ing direct, would you suggest leaving it there or are there better alternatives which give better returns. Is it always better to have some cash liquidity or can I use my line of credit to replace that? Thanks very much. Shyam