Q: This is really a comment not a question. In early January I asked 5i for some advice on how to get into the market as an older, conservative investor unwilling to risk too much for fear of capital losses. The advice was to enter in carefully and purchasing a diversified portfolio - basically a balance of the B+ or better rated stocks and four large caps for even greater balance (26 stocks in total). Since then ATP has crashed by roughly 50% (highly unusual) but the good news is EQI and FSZ are up ~20%, BAD and BYD are up ~15%, ESL and KBL are up ~10%, the rest are either up or down but nothing drastic. All this to say my portfolio is still up over 2% in 9 weeks (~12% annualized) even though ATP crashed. The diversification protected me. No one's going to get it all right all the time. That's why the balance is needed. Cheers.
You can view 3 more answers this month. Sign up for a free trial for unlimited access.
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Hi Peter and Team, apologies in advance to all but I need ask the following question; watched a fellow on BNN, Charles Nenner, a professor who has a mathematical system which has apparently been correct so far, so he says, that calculates the DJIA to fall to 5000...absolutely crazy, isn't it?? Have you heard of this fellow? He states that those who bought in 2009 are the ones selling into this ralley and going cash! He is all cash currently, so he says. Please see him on BNN today, and your thoughts on this would be greatly appreciated. I am currently fully invested with minimal cash on sideline. Thanks as usual!
Q: Hi Peter, This is just a general question. Funds in my company registered pension account are managed by Great West Life. Right now i have 100% money in high risk account (Leith Wheeler). I am looking at 10 - 15 yrs horizon. What would be the right approach as i can transfer funds from one fund to another fund like US Equity Index, conservative fund and bonds without paying any transfer fees??? Should i be moving money from aggressive to conservative in case of correction and move back to agressive once there is indication that correction is over. Thanks for the guidance
Q: Greetings Peter and 5i Team. Peter I recently saw you on Market Call/BNN...after hearing your philosophy I rushed to sign up to be a member of 5iResearch. Love it so far!
My question is, other than the top picks you gave on Market Call, do you ever publish a 'top picks list' here on 5iResearch from time to time ? Thank you...I'll hang up an listen ;)
My question is, other than the top picks you gave on Market Call, do you ever publish a 'top picks list' here on 5iResearch from time to time ? Thank you...I'll hang up an listen ;)
Q: Hello 5I Team, just a thought on selling winners vs losers. I remember hearing a story of a car dealership that each month fired the weakest performing salesman. Sometimes I think that this may be useful information when it comes to investing. If you have a stock that is just not living up to your expectations may be it is time to fire it.
Q: Hopefully not an odd question, but I hear and read comments and investors talking about short, medium and long term in reference to their holdings. In your opinion, could you define your thoughts on actual timelines for each? I realize this is subjective, I just want you thoughts on how you might define them.
Q: i remember the saying water the flowers,pull the weeds. also the 6% rule of total amount investing per stock.does this mean still stay within the 6% rule.
Q: Hi Peter & Team:
I am trying to pay more attention to sector diversification rather than just stock diversification. Could you comment on and/or provide a resource to help in determining how best to achieve appropriate sector diversification ? How critical do you feel this is and what information or signals does one look for when, because of general market changes, there should be an adjustment ? How does sector diversification strategy change depending on whether your portfolio is for growth,or income or balanced ? Can you recommend a site that classifies Canadian and US stocks into industry standard sector descriptions ?
You mentioned that you are doing a 'model portfolio' - will this also incorporate what you consider to be the best current strategy for sector diversification and will you do updates of that as appropriate ?
Would it be possible to provide a 'sector sort' for the stocks that you comment on in your Report and Member Question sections ?
Thanks so much for a great stress-reducing practical and educational service !
I am trying to pay more attention to sector diversification rather than just stock diversification. Could you comment on and/or provide a resource to help in determining how best to achieve appropriate sector diversification ? How critical do you feel this is and what information or signals does one look for when, because of general market changes, there should be an adjustment ? How does sector diversification strategy change depending on whether your portfolio is for growth,or income or balanced ? Can you recommend a site that classifies Canadian and US stocks into industry standard sector descriptions ?
You mentioned that you are doing a 'model portfolio' - will this also incorporate what you consider to be the best current strategy for sector diversification and will you do updates of that as appropriate ?
Would it be possible to provide a 'sector sort' for the stocks that you comment on in your Report and Member Question sections ?
Thanks so much for a great stress-reducing practical and educational service !
Q: How much influence should we put on small cap's P/E ratios? Some very good looking stocks have very high P/E's: AVO @ 69, LEG @ 87, etc.
Q: Peter,
What should one do if you are fully invested and and you feel there is some sort of 5-10% correction on the horizon. Should one sell some positions or stay fully invested. If one sells some strong performers, at their 52 week highs, would that be a wrong move. What should be the srategy in such a situation.
What should one do if you are fully invested and and you feel there is some sort of 5-10% correction on the horizon. Should one sell some positions or stay fully invested. If one sells some strong performers, at their 52 week highs, would that be a wrong move. What should be the srategy in such a situation.
Q: do you believe health sciences are a good investment, also what different types of stocks should be in ones portfolio to have a nice blend. your company is a godsend thankyou from the bottom of my heart and keep up the great work you are doing for common investors
Q: For investors holding significant amounts of cash, would you suggest dollar cost averaging back into the market or investing lump sums? Thank you.
Q: https://www.5iresearch.ca/index.php?p=download&file=119
Peter are the ratings on your Jan PDF report redone for the report or the same as they were on the report date? If they are the same will you be redoing them in another pdf?
Also what is your strategy on being fully invested vs cash - do you try to time corrections or bear market downturns? what % cash do you like to keep?
Tks.
Peter are the ratings on your Jan PDF report redone for the report or the same as they were on the report date? If they are the same will you be redoing them in another pdf?
Also what is your strategy on being fully invested vs cash - do you try to time corrections or bear market downturns? what % cash do you like to keep?
Tks.
Q: Hello 5i staff. I sure appreciate this fine service. I am a 61 year old aggressive investor. I have 10% of my portfolio in fixed income. At about $60k the fixed income portion is divided as follows. Sixty five percent in 5 high yield vehicles, FAP, TRH.UN, DYN9105, PHN280 and ATL908. Twenty five percent in corpoate bonds rated A and BBB, the rest in covertable debentures. With the prospect of rising interest rates should I sell any of the bond funds and switch into quality stocks? Thanks, Frank
Q: Hi team, I have about 3.5% of our portfolio in CHB US high yield income fund and I am up a fair amount from my initial cost and have enjoyed over a years worth of interest income (inside an RRSP). I know there is a risks to this ETF if US interest rates rise, but that just doesn't seem likely for a while yet. I don't think I am overexposed in this area, what are your thoughts? Thanks, no rush on your answer if you are short staffed.
Q: I was re-reading an article in the Canadian Money Saver by Wynn Quon. His analysis of a potential super bubble is certainly a scary prospect. I remember the 400 point losses on the TSE quite painfully.
What are your thoughts on this speculation? Have the problems that caused the turmoil on 2008 gone? Thanks
What are your thoughts on this speculation? Have the problems that caused the turmoil on 2008 gone? Thanks
Q: This is a follow-up to the answer to the "hold winners vs sell part of winners which are too large a percentage of your portfolio".
It is often hard to sell any part of something which is doing well and lookss to be doing more of the same in the future.
What I have done instead of selling to bring the percentage in line is to place a trailing stop on the amount which you would have to sell to bring the diversification back in line. Obviously trying to get the best of both worlds.
Would you have any comments on the validity of this strategy?
It is often hard to sell any part of something which is doing well and lookss to be doing more of the same in the future.
What I have done instead of selling to bring the percentage in line is to place a trailing stop on the amount which you would have to sell to bring the diversification back in line. Obviously trying to get the best of both worlds.
Would you have any comments on the validity of this strategy?
Q: Hi Peter and Team,
Thanks for a great first year of interesting and profitable investment advice. I will be renewing soon and look forward to the coming year of 5i reports.
My question concerns what seems to me to be contradictory advice having to do with portfolio rebalancing.
My approach is both capital gains and growing income for retirement. I have 20 stocks in my portfolio with what I consider to be good names such as STN, TRP, ALA, ESL, SYZ, AYA, BCE, etc. To me, some of my holdings are just getting rolling. If I sell back to 5% every time there is a rise in the share price it seems as if I am eroding my possibilities of future price and income gains (especially given the good prospects of dividend increases).
In a recent answer you said that an investor should not sell a good stock just because it is up. How do you reconcile these two assertions? Thanks again for the excellent service and have a great 2013. Rob
Thanks for a great first year of interesting and profitable investment advice. I will be renewing soon and look forward to the coming year of 5i reports.
My question concerns what seems to me to be contradictory advice having to do with portfolio rebalancing.
My approach is both capital gains and growing income for retirement. I have 20 stocks in my portfolio with what I consider to be good names such as STN, TRP, ALA, ESL, SYZ, AYA, BCE, etc. To me, some of my holdings are just getting rolling. If I sell back to 5% every time there is a rise in the share price it seems as if I am eroding my possibilities of future price and income gains (especially given the good prospects of dividend increases).
In a recent answer you said that an investor should not sell a good stock just because it is up. How do you reconcile these two assertions? Thanks again for the excellent service and have a great 2013. Rob
Q: Peter...looking for $US exposure via exxon ge p&g mcd. Is a US$ trading acct. the best way and if so...are there tax and withholding issues? regards Art
Q: Hey Peter and Co.
I am thinking about getting into covered call writing on some of my dividend stocks. I'm reading up on the strategy mostly from Alan Ellman's Complete Encyclopedia For Covered Call Writing.
I really don't want the stocks I have to get called so I'm thinking about just writing out of the money calls to add income to my portfolio. What is your opinion on OTM covered call writing and covered calls in general?
I am thinking about getting into covered call writing on some of my dividend stocks. I'm reading up on the strategy mostly from Alan Ellman's Complete Encyclopedia For Covered Call Writing.
I really don't want the stocks I have to get called so I'm thinking about just writing out of the money calls to add income to my portfolio. What is your opinion on OTM covered call writing and covered calls in general?