Investment Q&A

Q: North American markets have had a great run the past two years and now it looks like we are in for a prolonged period of selling, especially given that the corvid 19 virus is not a "one off" event but a protracted worry and uncertainty exacerbated by disinformation on social media. The markets were long overdue for such a correction. For the meantime, I have gone to cash in registered and non-registered accounts and bought inverse etfs like HQD (2X Nasdaq bear), HXD (2X SPX60), and HUV (volatility index) to continue making modest gains during the downturn (instead of losing money!). Are there any other defensive (inverse) etfs you could recommend?

Q: I wonder if I could get you to speculate what impact Bernie Sanders being elected President might have on the markets. And how one might adjust a portfolio in response/anticipation of such an event. For example, I imagine there could be a major impact on health care stocks.

Q: What advice do you have given the current market correction given the virus? I have a conservative portfolio (banks, utilities and telecommunications, Berkshire B and Microsoft?
Thank you.

Q: What do you think is the motivation behind Trumps proposed tax incentive to buy equities and what would be the ramifications for investors should it happen?

Q: The US is having some issue, China is having major issues affecting world economy and Canada in particular is struggling to resolve transportation (and therefore market) issues.
Do you have a general outlook on where the market is headed and should I be cautious and keep a larger cash balance? If so, when do you anticipate a clearer outlook?
Thank you.

Q: Pro shares -SSO
DO you think this is too risky for average investor? Any way to protect downside risk?

Q: For the US market in 2020 in general what is the probability of having a 5% correction? A 10% correction? A 15 % correction? Or a 20% or more correction?
Clayton

Q: Notwithstanding the Coronavirus (which I understand is a wildcard at present), what sectors and regions would you be inclined to over/underweight in 2020? Thank you.

Q: I am concerned about the concentration of FAANG stocks in the S&P 500 index. My understanding is that the concentration of the top 10 holdings in the S&P is near historic highs.

Do you feel this is a real risk? Would you recommend switching from a market capitalization ETF (e.g. VFV) to an equal weight ETF (e.g. EQL)?

Your advice is most appreciated. Thank-you

Q: Good day 5i Team,

Would you be able to recommend few tickers for a cover calls strategy? Any suitable companies that are traded on TSE?

Thank you,

Q: Hey Peter & Team,
Interesting day in the market. Sizable drops across the board and around the world. I am sure there are some that will look to this as "the" excuse to panic and sell thinking a big correction is sure to follow. From what I can tell, this is not a bubble market such as the Mortgage Crisis or .COM tumble. Fundamentals seem strong in the solid companies, and unless you are invested in risky might-go-way-up-might-go-way-down companies everything will be fine.

Have you and your team come up with any thoughts on what's going on? Should we be concerned about what effect the beervirus (coronavisrus) fears might have on our investments? Or do you see this as the normal week-to-week month-to-month ups and downs that self directed investors such as ourselves should continue learning how to be comfortable with.

Thanks for all you do

gm

Q: There is a 1st death in Beijing. Do you think we should remain fully invested or is it time to start taking some risk off the table? During Ebola, I remained invested, but this time, the market hasn't stopped going up for a while and expectations are high. If you are not worried, what would be a new development with the coronovirus that does change fundamentals for the market?

Q: Hi, can you explain the connection between the Coronavirus and the markets? I’m watching stocks like Photon, Nvidia, and Xpel get hammered (xpel the worst at 12% - I’ve already taken profits so I’m only on house money there at least). I just don’t really understand why people getting sick has such an effect. I’m not trying to be cold, just trying to understand and learn if there’s a way to hedge against it.

Thanks

Q: I am interested in the investment implications of the coronavirus, should it spread similar to SARS or worse. Specifically, when SARS occurred, what was the impact on global markets? What markets did well, and what markets did poorly? Was there a movement towards cash, bonds or gold?

Thank you for this wonderful service!

Q: If the Coronavirus in China becomes a public health emergency, which North American companies will be impacted the most ? Thanks.

Q: It appears that the corona virus is continuing to affect the world markets...
I realize that it is still very early in the developing story but what kind of affect did previous health situations have on the U.S. and Canadian market place???
Ed in Montreal

Q: I have a non-registered account, with 8-10 years before the funds are needed. To minimize tax, we would like focus on 100% capital gains, if possible. Can you recommend some ETFs or individual stocks? We have been looking at Horizon's corporate class ETFs. Thanks for your continued excellent non-biased reports!! Grant

Q: I am a retired, conservative, dividend-income investor who is normally fully invested with a "buy-and-hold, but trim-add around core positions" strategy.
I currently have 2% in investable cash, with my portfolio set up exactly where I want it now...good asset allocation both via sectors and via individual position sizes.

However, I am also looking at the macro picture and things seem to be going parabolic. I am contemplating trimming to increase my cash position from 2% up to 5%. I understand in the past you have indicated that the key things to watch are interest rates are unemployment. They are both low, so "let it ride". So, what to do...let it ride vs trim? I know this amounts to market timing, which I know you are not fond of and, coincidentally, I am lousy at.

In your past life, as a fund manager, when did you raise or invest your available cash and what factors pushed you to do something or to just sit on your hands?

Thanks...sitting on my hands for now...Steve

Q: Interest rates. I use the theme that interest rates will show where the country is in the business cycle. At this time interest rates will be declining or will be stable rather than rising. Therefore the chances of a recession are very low to low.
I would appreciate your opinion.
Clayton

Q: Which do you prefer currently - VOO or VTI - and why? Thank you.