Investment Q&A

Q: Headlines scream out "Sell Everything" ... but surely there needs to be someone on the other end to "Buy Everything".

I've been slowly dipping in and buying and appreciate the wisdom in your answers to all members questions.

Do you have a gut feel for how long the market sell off will continue? I like open ended questions like these to see where you go with them.

Thanks
Mike

Q: Would you advise buying now in anticipation of a bounce back, and if so, what sector? Tech? Health? Or should we buy defensive stocks or bond funds in anticipation of continued heavy turbulence?
If you had some money ready at hand, what would you do with it?

Q: If one decides he has too much risk, would it be wise to sell some equities now at these depressed prices, or wait for a recovery to act?
Thanks,

Q: It looks like a lot of people are taking that RBS advise to "sell everything " to heart today. Wouldn't selling now just lock in loses? Do you advise the best course is do nothing and just ride it out for those who don't need the cash?

Q: I have a fairly diversified portfolio with stocks and etfs in different sectors. But I am seeing a majority of my holdings are down. Practically, anything which was bought within the last couple of years is down especially anything in the last couple of months (which was when I invested a majority of holdings) is down. I have a fairly long time frame but what should I do at times like these? What should I learn from this? Even those stocks which seemed like a good buy at that time seem overvalued..On top of this the drop in Canadian $ was a big hit.

Q: Can you please comment on the S&P500 valuation at the moment and going forward in this environment ? We keep hearing about the strong dollar which affects earning but it appears the index remains very high at close to 2000 (vs the last 5-10 yrs). Also, do you think the tsx will be closely correlated with the US index in the next 2-3 years. Thank you.

Q: Which stocks will benefit most from the low Canadian dollar. I had thought that exporters like Magna would, but the market has not been any kinder to it. Can you suggest a few names to consider?

Q: What are two Canadian stocks that would benefit from our very low Canadian dollar.

Thanks

Q: Hi, although I have learned plenty since subscribing to your service about two years ago, iam now realizing that my portfolio consisting of about twlelve total stocks from your portfolio's, majority of which are growth stocks, that my beta is about two at least, Do u think I should rebalance or stay the course in this tough market? I can handle it but it is more difficult than I thought, I won't need the money for about five years, thanks?

Q: Is it a good time to add to a diversified portfolio during these volatile times ? I have a long term horizon with limited exposure to stocks curently but the decline since the summer has been bad (oil and commodity mainly but many other names as well). I guess i worry that we could be in for another 20% drop and i have a lack of confidence in the market at the present time. Your comments are appreciated... If time to add, should i add to energy and materials as well ? Thanks

Q: My portfolio is overweight in Financials and feel I need to reduce over time. Wells Fargo has provided good returns but I am thinking there is more upside with BNS and TD over the long term.
I am planning to sell my position in WFC and move to a different sector in US$. Perhaps the Consumer Discretionary or Industrial sectors. Your thoughts.

Q: The CDN dollar has dropped (you may have noticed). Many Canadian corps are at very low numbers relative to 2014 highs. What are the chances of foreign (read US, for example) buying Canadian companies at extremely low prices (in US dollar terms)? Can you answer by segments, for example:
Banking
Other financials
Oil
Mining
REITs
Consumer discretionary
Any other segment that comes to mind?

Thanks for your insights.

Q: What do you make of a market that starts with hundreds of points up and end with hundreds of points down or vice versa. From your experience is that an indication of bull, bear or nothing can be concluded from these actions. Does history give us any indication what to come or is this a normal gyration of the market and unpredictable investor's reaction?

Thanks

Q: I'd like to get your response to the "Sell Everything!" headline in the Financial Post today, quoting an RBS report saying 2016 would e a 'cataclysmic year' for stock markets.

Q: Would you consider a rethink on the growth portfolio not only regards the constituent holdings but the whole portfolio as a percentage of the total investment? I ask this in light of the increasing probability of the following economic conditions:
1. The oil price remains depressed for the entire year with the western provinces in recession and the Canadian GDP also contracts for two quarters or more.
2. The steep decline in shale production and the rate increase in the US would have a significant negative impact on the Russell Index IWO which maybe in bear territory?
Assuming that any given individual’s investment in the growth portfolio is according to her risk profile, would you suggest adjustments to the overall portfolio weight (increase or decrease) in proportion to the balanced and income portfolios; and the individual growth stocks for 2016? If you would, then can you please try to indicate exposure to specific sectors/regions/stocks?
Regards.

Q: Just a comment: you like to repeat that we never had 10 year loss for any major market. Well, we are very close to this here in Canada: April 21, 2006 S&P/TSX Composite close was 12437, as I am writing this the index is 12241... While we don't have 10 year loss yet, we have 9 years and 9 months loss. Regardless whether we blame it on oil, Canadian bureaucracy and unions, or ignorant and corrupt politicians the fact remains that investing in stock market in Canada in the past 10 years was the worst mistake one could make...

Q: Hi Friends! My question is more general in nature. Most people including myself have a very general understanding of how financial markets and government monetary policy works. In an extreme situation where there is a breakdown of the financial system how can an investor maintain some sort of reservoir of value in the event most traditional investments had little value for a period of time? Sort of extreme I know but I think many average investors wonder about this scenario. Ian

Q: I have investments in the US and Europe and have started to think that India might be a good place to enter into the emerging markets as part of my Global diversification. Would you agree?
What are the options for investing in India and can you make any recommendations?

Q: Hi,
Response to Peter this morning "But if you are not withdrawing capital from your portfolio, this is just another week in the markets." prompts me to ask for all us retirees who must withdraw capital, what would your response change to?
Thanks for all your guidance.
Ted

Q: Hello.
Thanks for the quality reading about companies. This subscription has generated educational and financial benefits.

After review of many income and quality holdings held through 2015, I find myself questioning Portfolio Management strategies. While I attempt to have a long time horizon and focus on the company not the ticker, I have to question the practice of an Investor holding companies that rise nicely in price only to fall from high prices (pick any reit or quality income oriented investment).....essentially doing a round trip ..some into a negative position. (IPL, BEI, WSP, TCN, CGX will be there soon)

Often accompanying the Investor along this journey are comments like, good company, good to hold for income investors, fundamentals look good or the dividend should support the stock price.

Can you offer thoughts on the above general scenario and either how to overcome the sense of loss as stock prices tick lower for companies previously sporting gains or what alternative strategies/ Portfolio actions are out there (not trying to be a trader) to help reduce the downside action of a Retail Investor's portfolio?

Thanks for your efforts.
Dave