Investment Q&A

Q: I've recently transferred approx. 10% of my RRSP to US$ currency. This portion of my funds will be invested in the US market. I believe that in the medium-term, the Canadian dollar will go down again against the US dollar to the mid 70 cent range as it has in the past. When that occurs, I was planning on selling my holdings, transferring the money back into Cnd. funds and possibly just repurchasing US holdings. I know it's after the fact, but was this a good idea or am I just overcomplicating my portfolio for little gain? My retirement horizon is over 10 years away.

Q: Hi Team,
Do you recommend having higher cash position at this time or near future?
Thanks!

Q: Thank you for providing such an unparalleled service. Your cost increases are minimal.

My question is about diversification in my RRSP which consists of mostly high quality growth stocks (GOOGL, VISA, NIKE, ACN, NVIDIA, etc.) I am however, under-represented in Canadian stocks which include BAM, SHOPIFY, IFC, FSV, & BIP.UN. My goal is to build up my Canadian portfolio in this RSP.

I am well represented in Tech, Consumers, disc, & health care with my US holdings. Can you recommend 10 Canadian stocks that I could add for the long term to balance out my portfolio? I am deficient in financial, materials & industrials. Or to apply the Occam's razor, should I just buy and accumulate XIC over time.

Many thanks

Q: My question relates to the 10 yr less 2 yr government bond spread as an indicator of a recession. Has it ever happen that Canada has had a recession without one in the US, or vice versa. The reason I am asking is because is it better to worry about the US 10-2yr spread or the Canadian 10-2yr as an indicator of a recession. Tnx

Q: According to yesterday's Globe, this Friday will see a frenzy of trading especially in the last fifteen minutes of the day due to the annual rebalancing of the Russell indicies. My first instinct is to avoid trading on the day as it may be frustrating. For a buy and hold type of investor are there any opportunities to look for, possibly next week, as securities are added and removed from funds? Are there any stocks you cover that will be affected? Thank you.

Q: Hello 5i Research
The US index has out performed the TSX index the last decade.
Do you think that the next decade
the Canadian market will out perform the US market ? What are your thoughts/ guess?
Thanks

Q: Are we starting to see another sector rotation particularly back into tech? What do you see as the best sectors to put money to work in right now?

Thanks!

Q: I realize that things are a little crazy throughout the world but can you see any particular reason that advisors of my friends ( 65 yrs plus ) are moving there portfolios into very defensive positions other than the good run in the last 14 months? Is there anything that I am not seeing as opposed to them? Thanks, James

Q: Hello, I have a well diversified portfolio with
• Asset: 73% equity, 16% FI (mostly cash), 2% Real estate, and 9% Preferred
• Geography: 37% in Canada, 38% in US, 10% in Global (not counting cash)
• Sector: 18% in utilities, 18% in Finance, 24% in high tech, 8% in consumer, 7% in multi sector ETFs, 7 % in health, and 5% or less in each Telecom, Material, energy, and Industrial
Portfolio Dividend yield is roughly 2.9%. I like to deploy part of the cash (6 to 8%) in Canadian safe dividend stocks to increase portfolio yield. Investment horizon is 10+ years. I already have Popular names like ENB, BCE, TRP, POW, BNS, EMA, T, TD, FTS, RY, SLF, RCI.b, and AQN.). Here is my question:
Should I add more to the shares I already hold, or do you have suggestions for companies with safe and growing dividend in the sectors I am under weight. I am about 5.16% in Telecom. Option is to add more to BCE, Telus, and/or Rogers? Is this a good strategy or should add more to growth stocks since I have 10+ years of time horizon.
Thanks for your support.

Q: What part of the market do you see as undervalued? and can you provide a few choice selections? txs as always...

Q: I am up 104% on TOU and the stock now represents 28% of my portfolio. I know it is time to trim, but would like your opinion on how much to sell and where I might reallocate the money for growth (non-sector specific).

Q: Peter Foster penned an article in the National post on Saturday about Mark Carney and the impending green movement and great reset. Based on Mr. Carney’s seeming ties to the libs and global heft, do you see the is as a threat to markets in Canada and globally?

Q: Hi 5i team.

I am interested in your analysis of the following.

Given the markets appear to be trading at higher multiples vs "normal", can you please comment on what the current levels are, what the median levels would be (that history shows us) and what the market levels would look like if a reversion to the mean took place?

Many thanks.

Q: Hi folks.

With all this talk about higher inflation (new shiny object for the media) there has been very little discussion on the explosion of debt Countries have embarked on, pre, and since the onset of Covid. Seems like this appears to be a coordinated effort throughout the developed world, and as a result, no one seems too bothered, Including Conservatives.
Are there any lessons in history we can draw from? How does 5i think this all gets resolved over the next decade or two, assuming it will take a bit of time to generate enough growth to cover all this?
Are we headed for multiple Japans where the Gov't owns all or most Gov't issued bonds to control interest payments. Does this scenario create even more inflation with depreciation of currencies and a race to the bottom on exchange rates? Way above my pay grade so please take a stab at opining on this for us.

Many thanks.

Q: I am currently over-weight in Financials (more than 50%) in my portfolio. I am in the process of slowly re-balancing by first of all moving some $$ into Utilities & Telecommunications. What would be a reasonable % of portfolio for an average investor to have in Utilities & Telecommunications?

Q: Hi, is there any means of measuring the volatility of a stock? Thanks.

Q: Looking for a list of North American companies following attributes: management owns at least 25%; sales over 1 billion; positive earnings last 3 years; no equity raises last 3 years. Thanks

Q: I am reading "Machine Learning for Algorithmic Trading" by Stefan Janson. It states that algorithmic trading in '19 accounted for 35% of institutional trading (excluding HFT) that is increasingly dominated by ML driven systems (Rebellion Research, Sentient, Aidyia,..) and of course we all know about Renaissance.
I am curious about any comment you might have on that topic, do you see value in this for your style of trading and maybe even considered using it. Your results are already spectacular, so my question is driven only by intellectual curiosity.
Peter

Q: What are your thoughts on the market and a big correction? Several articles of late saying it could happen sooner than we think, the most recent being a G&M article by George Athanassakos, wondering if you saw that one?

Thanks,

Cam

Q: I noticed huge collective volatility in a few stocks that I follow for the period May 13-May 21. Beaten down growth stocks rocketed up; C3.AI up 40%, PLTR up 16% and XBC up 36%, while a typical copper producer CMMC was down about 25%. It looks to me that there is a huge amount of speculative money out there looking for very short term gains, pouncing on anything that looks undervalued and shifting from sectors that have had a good run. I guess that it means that the individual investor has a high probability of getting whipsawed and that long term investors should not be overconcerned with short term volatility. Do you have any comments on this? Thanks, David