Investment Q&A

Q: The switch to small-mid caps predicted by the 5i team is evident in the past few days. Seems to be in part at the expense of large caps that have been very successful in the past year (largely tech names). Many of us have a diversified portfolio that includes small through large cap holdings. However, is there sufficient uninvested money on the sidelines to support a broad range of gains or do we need to adjust our portfolios, away from AI names, for example, to profit from the rotation? The AI story seems to be in early stages but the market may not be adequately supported or rational in the short term. Do nothing and stay the course or react and trade with the trend?

Q: Morning 5i Team,

May I please have your comments on the apparent rotation out of tech stocks over the last few days? Do you see that as a fleeting thing or see that as sustaining?

Cheers,
H

Q: What are your thoughts regarding lingering inflation and the market?

There seems to be heightened conversations around a recession. Is it best to continue to pick away at stocks even though we are close to all time market highs?

Q: Hi Group can you please give me your top 3 picks for TSFA ( I am 74 years old but do nor require a dividend unless it fits with your recommendations ( i also have room for $50,000 Cad)

also what your top picks c/w short reason for the picks. for the leading 6 sectors as of today. regardless of US or CAD Thanks for your help it much appreciated

Q: Is there meret in the theory that metals do best at the end of a bull market. Does history show this. I'm thinking a recession is on the horizon based on the double digit returns I've been seeing in metals and should start taking profits.

Q: hi, what is 5i's current views on when, how many, and how much interest rate cut(s) the Bank of Canada will do for the remainder of 2024. further, is there a "metric" on how much "torque" each percentage point may have on the big beaten down blue chips in Canada ( eg Telus, BCE, Banks, Utilities, REITS...)
cheers and thanks, Chris

Q: If Trump is re-elected as president of the USA. he could seek to devalue the U.S. dollar, making Canadian exports to the U.S. less cost competitive. How would this be done??? Also would this put in jeopardy the USA dollar being the reserve currency and perhaps the currency of another country taking over, like Germany, Japan or South Korea??? Anxious to hear you thoughts....Thanks....Tom

Q: I am going to sell most of my u.s.stock so will have u.s. funds. where should I invest it for safety I am 87

Q: I've made the mistake in the past of selling a full position too early or holding too long. Now I'm trimming positions / rebalancing when appropriate. With some gains I want to make sure I'm diversified, is it a bad idea to throw gains into an S&P500 index or something to ensure gains over the long term. I'm 32 so many more years in the market.

Q: For the next 5 years, what would your asset allocation look like if you were building a portfolio today:

Money Market %
Canada index %
USA index %
International index %

For equity exposure, do you believe in the 100 - AGE rule of thumb?

Thank you

Q: Hi,
Brian asked about private equity on June 25. In your response you mention that private equity is not correlated to other assets. I am looking at the 10 year performance of PSP vs. SPY and their charts move up and down in almost perfect parallel (pre-COVID run ups, COVID crashes, post-COVID run ups, etc.), with PSP returning 93% and SPY 234%. On a 4-5 year time scale, PSP/SPY/NGPE move up and down in parallel as well. I am struggling to find a reason to invest in a private equity ETF based on this. Is it because an ETF, regardless of what it is investing in, is in fact correlated since it is traded like any other equity?
Thank you for all the great information your provide, Michael

Q: Thank you for your excellent answer to a very pertinent question by Brian this morning (25-06-2024) on Private equity.

You didn't include your all time favorite company BN :) How come? Also, sometime ago when I asked about non correlated assets, you had mentioned about the US companies like KKR,BX,BLK etc., They didn't get a mention in your answer to Brian either.

In your answer to Brian you had suggested ETFs both in the US and one in Canada. Do you have any particular preference?

Last but not the least, from your answers to various questions, I get the impression that you are not too concerned about the impending crash! You still seem optimistic. In that case increasing the allotment to Private equity is bit premature, no?

Take as many credits as it is warranted.

Many thanks.

Q: Hello 5i, Could you explain the recent amendments to Bill C-59 and how it will effect oil companies.

Q: In a non-registered US account, I wish to purchase anything Now that .. 1. Pays no dividends or interest. 2. Keeps up with real inflation ( US inflation is greatly understated ) 3. Would survive a 50 market crash largely unscathed. Already have 10% precious metals …… thanks - JP

Q: Are we Canadians fools? Rhetorical don’t answer that. My question is should we do what you do and not what you say. By that I mean should we invest 100% in the US market and forget about the Canadian stocks. It seems that we are 2%/year or so behind the US on a long term basis. We would easily make up the FX costs within one year. Currently you suggest 30% or so Cdn and I am not that low yet, but I do wonder if that target is too high.

A diehard Canadian who may also be a fool.

Q: this is a question about financial / portfolio advice in estate planning.
Assuming I were pass on, my 3 children all in their 20's , all still in university, they would stand to inherit a million each. What investment advice would you recommend for management of their inheritance. ( I know the Buffet advice, predominantly ETFs.)

I would be curious to survey 5istaff with children and 5istaff closer to their 20's for different view points.

thanks

Q: I think I know why more members don't use the Forum feature. It's a bit difficult to find! I suggest that you add a link in the top "Members, Market Data, Podcast, Blog, About...." Once members see the usefulness of the Forum, they will start using it, and there should be less "inappropriate" questions.

Q: Hi,
I read with interest your latest Market Update. I am curious, given your interest rate and market analysis, does the Russell 2000's performance (e.g., IWO) this year indicate anything to you about the possible future direction of markets and the economy? Thanks, Michael

Q: We have accounts in RRIF and TFSA. We like to keep approx 6 months of cash in case of economic downturn. Is this too long a period or keep 3 months and invest the rest to produce income. I thought maybe because of interest rates starting to come down it maybe would change economics to positive. Will elections play a role with all the gov't calling elections in the future. we have pensions and dividends that keep us happy .We live within our means.Thanks 5i

Q: Any predictions of when the $CAD is going to increase by about $.05 US? What will drive the increase?