Investment Q&A

Q: In general, what would be a good yearly return on investment in the stock market, and what do you expect for 2022

Q: My question is simply, when to sell ? I acknowledge market timing is impossible and most portfolio managers say stay invested for the long term. Somewhat cynical as believe that such advice is driven primarily by compensation and relative performance issues, issues which retail investors are not subject to. Most of my assets are in taxable accounts with concentrated positions, especially in the FANG stocks. It’s been a good run and inclined to sell the lot, pay the tax and wait for the dip. I have no doubt that these stocks will be significantly higher in 5-10 years, but I also have no doubt that there will be a dip where if patient you can acquire for a lot cheaper, ( prime example is Apple and Meta). Not looking for individual advice but retired which obviously impacts the length of the runway or exit ramp. Thx

Q: Hi Team,
You had mentioned the expectation of potential "small cap bounce" scenerio in January. Does this usually happen within the first couple weeks in January or what's the history on that? Also, if one was to use some "lottery ticket" money to buy some call options on a high beta name due for a bounce...would AT (acuity ads) be one to look at with options expiry Jan.21? I realize this is not a typical strategy, more of a casino night play. If you don't like this move, do you have any other call options strategies you are spotting right now that if they work out would yield some big gains?If so please list the precise call option contract. Again, I know options are not usually discussed here or endorsed. Thanks

Shane.

Q: Hello 5i Team
Why did the Technology stocks
sold off today when yesterday they all (most) rallied.What changed ?

Thanks

Q: What would you expect the 2022 increase in interest rates to be in the US now that the FED is signalling (Bloomberg) it's ready to begin to raise them?
If you were sitting on EUR cash, would this signal a readiness to buy USD? If yes, what news would you look for to know when to buy the USD?
I realize you aren't forex dealers but any insights would be useful.
Thanks a lot.

Q: Everyone, with the US Feds announcement- now what happens to the market?

Clayton

Q: I bought these (and others) for growth, and was doing well, but am now in the red on these holdings. I bought for a five-year hold, so don’t need to sell anything, but I would ask, do you see any that should be sold or any that I could be adding to for a January bounce? Thanks!

Q: There was an article in the G&M today (Dec. 14th) that I found interesting. https://www.theglobeandmail.com/investing/article-if-stocks-crashed-what-portfolio-would-you-want/
It suggested that a portfolio of 25% each of gold, cash or equivalent, long bonds and equity would have returned 7% plus annually over the last 30 some years, with the worst year being 2013 when it would have declined only 0.5%. It goes on to suggest some ETF’s that could make up this “Permanent Portfolio”. In the current environment, and knowing that past performance won’t necessarily be repeated going forward, the strategy looks crazy to me. Not sure if you would have read the article or if the “Permanent Portfolio” is a generally known thing, but any thoughts?

Q: Hello 5i Research Team
Looking forward to next year 2022, what strategy would you recommend with the likelihood of higher interest rates.Which area of the market are going to perform better and going to be hit hard. An example of a few stocks that you may recommend that should perform well next year.
I would like to thank everyone on the 5i research team for great advice and wishing you and your family a Happy and blessed Holiday Season.

Q: In your opinion how much of the inflation/interest rate fear is already reflected in the market. What is the best advice to feel better about this shift if growth stocks are a good part of a portfolio.
Thank you for the hand holding that you all do.
Peter

Q: Other than stocks vs bonds, please list your favorite uncorrelated asset pairings to include in a diversified portfolio. Thank you.

Q: Under present circumstances I find it difficult to determine at what stage we are in the business cycle. Could you overlay the business cycle and market cycle and indicate where you think we are and how this will influence one’s investment thesis?

Q: Like many here I am nervous about buying fixed income in the current situation. You often mention that most people will be sorry when things turn around and stocks fall. Well, I get that. Even though we would have enough to survive even with a fairly large drop in the value of stocks. But, I realise that it would not be fun. So, what to get in terms of fixed income. I have mentionned in other questions that I would be inclined to get something completely sure for this component of a portfolio. Unfortunatly, it is likely to lose money, when inflation is considered. So, is it worth it to go further afield and enlarge the fixed income space? Here is what a popular blogger writes about this question. I would appreciate it if, with your experience and judgement, you could comment on it:

Another fallacy to dispel is that the 40% of a 60/40 should be in bonds. Nope. Many govy bonds suck and will be creamed as rates rise. So this is a really bad idea. That fixed income portion of the portfolio should be made up of short-duration bonds, some corporate invest grade issues, a floating-rate bond ETF and a healthy weighting of rate reset preferreds, which rise in value along with the prime.

thanks as usual for the great service

Q: Some stocks you recomend from recent tax sale.(OVER BITTEN)

Q: Everyone,
When do you believe people will be buying for 2022? Have they been buying a little, normal or above average going into 2022?
Clayton

Q: Any thoughts on the fear of an increase on the capitol gains inclusion percentage being raised and the influence on the current stock market dip.

Q: Pardon my ignorance if I’m missing something with this question. I understand that the market worries about leveraged companies in an inflationary environment, and that is a legitimate concern with real consequences. But at the same time, as the price (in dollars) per unit of value increases, so must the price of those same companies that have a tangible value. Holding a company whose stock price might decline in the short to medium term due to market worries but whose fundamental value will eventually be measured in more dollars (ie a higher share price) due to that same inflation seems a whole lot better than holding cash whose buying power erodes as the price per unit of value increases. Is that a fair argument?

Q: Hi Peter,

In this downtrend market could you please give your three best stocks to buy for 3 to 5 years hold in each sector in canada and US as well ?
Thank you for your best advise on this platform.

KT

Q: Not a question, just an observation. Evergrande is in the (mainstream) news again this AM Dec 9. Blackrock is being reported as being the second-largest institutional holder of Evergrande shares, and I wondered what impact there might be on my portfolio specifically as regards my holdings in XAW. In looking on Blackrock's site for XAW's holdings, I found that out of total XAW holdings of $3.8 billion, Evergrande accounts for a mere $21 thousand, less than 0.01%.
I haven't looked at other iShares ETF's, but as far as XAW is concerned -- I'm not worried.

Q: Assuming rising inflation and interest rates, what are your top two or three security picks? In Canada please.