Investment Q&A

Q: Hello,

General best practice question here on portfolio diversification based on a question asked many years ago.

1. If you were starting fresh with an equity portfolio, how many names would you choose and would they all be equal weight by name? Within that number, would you have a recommendation investing in a set number of ETF's?

2. Would you recommend adding stocks across each of the 10-14 sectors (or prioritize specific ones) and apply the same weight?

3. In terms of tax benefits, would you tend to hold US stock in a TFSA or RRSP? I seem to read conflicting views.

Q: Hi,
We own both Atd (3% position)and PKI (1% position). Which is the better company going forward? I am thinking about selling PKI and buying more Atd and maybe also adding to ENB(2% position) All these companies have had sizeable pull backs. Just trying to figure out what has the best potential going forward. No tax implications.
Thanks,
Kerri

Q: Good morning; I read an article in the G&M on the weekend regarding the remote possibility (should Trump win) that they may change how the US Fed operates; affecting its independence and role as the world currency.

Crazier things have happened and with 50% of my investments in $US it got me wondering - if the US Finaincial system were subject to such change, which currency could/would replace it? I’d be interested in your view of the likely top 3.

Thanks very much,

Dave

Q: Do you think the copper trade has legs for those looking to get in at this time? Thanks,

Jason

Q: Everyone, I have a defined pension, aka income fund, that increases with inflation. Should I still have a diversified portfolio within my RSP / open accounts or can I take more risks with good quality growth stocks like CSU, the best of the best. Clayton

Q: With US GDP down and inflation creeping up, what is the FED to do now? Cut rates and inflation will increase. Increase rates and economy could crash. Are we headed for stagflation? In these times, how should investors proceed and which sectors do well and don't do well. For a long term investor like myself, how should we position? Thoughts? I'm high on Technology, Financials, Consumer cyclical, and Industrials. Thanks!

Q: Regarding your comment in an earlier answer: "We expect market volatility in November. ".... Why?

Q: I have a 5% interest rate on my bank account right now and because of this I'm way more cash heavy than usual. Does it make sense to hold a larger portion of cash when interest rates are so high?

Q: Hi Peter, It will be nice to get your detail opinion on today upcoming budget from investors point of view via a blog. Just a suggestion.

Q: Hello
I m wondering if your team has thought about a AI filtering / Help options for your Questions tab ? IMO I m noticing near 50% of the asked questions have been previously answered MANY TIMES OVER. This would allow other 5i members to save times not having to read the mulit requests on the same information.

This feature would most importantly allow the 5i moderator to focus on other NEW Questions, strategize on more / improved technical features (PA) for the platform or infact start to create member reports for the USA positions the moderators in fact hold and endorse.
This issue has really bothered me that many CDN TSX microcap positions have reports and endorsements (even on the 5i X acct) to buy while the 5iii moderatior doesnt in fact own them IE no skin in the game. FWIW many have very poor returns or get dropped from your T.A radar !

Just my thoughts as longtime PA Member

Q: I would like to hear your thoughts on bitcoin miners as we approach the next halving date.

Q: Good Morning! On a macro level and considering the current high average P/E ratio of the S&P 500 would you be more inclined toward Canadian, International or Emerging market investing. I see that both Canadian and International markets are also priced above average, although not as much as the US. For Emerging markets India and China on the other hand are presenting faster growing economies (still China is much riskier in my POV but BABA might be a good opportunity). What are your thoughts ? Thank you.

Q: Morning 5i,
You may have recently fielded similar general questioning and if so I apologize for the repetition, but here goes. Almost exactly two years ago the market was at a high very similar to its current level and I was feeling very good about my holdings, but things turned south pretty quickly - especially in tech but in other sectors as well - and it's taken me much of the two years since to recover. Granted, at that time I was holding tech names like LSPD, ILLM, EGLX, XEBEC, DOC and WELL which have now been replaced by LMN, CTS, HTA, TXF, TXF.B and I have shored up the non tech end of things with names like BNS, CM, GSY, PRL, EQB, CNQ, TOU, SU, KEY, ENB, EIF, SIS, DHT.UN and MDA but I can't help but wonder - are we approaching that precipice again and if not, why not?
Is the market fundamentally stronger now, and more resilient, than it was when everything looked oh so rosy two years ago? Presently things seem to me almost too good to be true, and I think when that's the case they often are and I would sure appreciate your perspective on the year ahead. (Right now I feel like I should all and go to cash ...).
Thanks, and please deduct as you think appropriate.
Peter

Q: My portfolio is not at all balanced because of the heavy weight of my Tech sector . I am reticent to sell any it. What would be the absolute max for a Tech sector?

Q: With the US inflation numbers showing a spike and markets selling off today, what do you see markets doing in the short and medium term. How important were the inflation numbers?

Q: If the US decided to devalue their currency, how would that effect stocks?

I read some where they did this in 1933 and 1971.

Q: Hello, The macro market models are really informative and exactly the type of information I was looking for. Within the TSX sector rotation model it does not include Healthcare, Discretionary, and Communications. Can you explain the rationale? thank you.

Q: are there any economic implications when both gold and oil and gas are rising in value at the same time ? Thank you.

Q: Hi Team,
Is the party over in the markets this year? Should we be cashing out for conservative dividend payers at this point? Funny ; just when I hear more and more talk of people buying small cap agressive names the market seems to have “peaked” and now rolling over. It’s hard to believe the economy is so “hot” in the US when I hear so much about people being hundreds of dollars away from paying their bills , and with mortgages renewing people that were on the verge will be slammed. Tech companies have laid off thousands over the last year. Some I talk to believe the numbers that the government put out are “false” and politically driven to make the current president look good: especially heading on election year. Sometimes a person really has to wonder if there’s a crisis in the making with the high inflation , interest rates etc. Not that I am a conspiracy theorist but over the years it certainly looks like books can be cooked, so to speak. Just looking for your take . Thanks

Q: Everyone, what are the three biggest risks to the market this year? Clayton.