Investment Q&A

Q: I am going to add Gold to my portfolio and am looking for your advice. I really like the Franco-Nevada model being that they have royalties and do not own mines, but it seems quite expensive? Thoughts on evaluations etc ? Depending on your thoughts I would like to add FNV and an actual gold miner. The ones I have listed have a larger market cap as I am not interested in too small of gold miners.

With all the things going on in the world right now, how concerned are you of a recession in the US that will drag Canada into it? The flags I am concerned about right now are: 10yr bull market, US balance sheet issues, repos, inverted yield curve, Fed policy (decreasing interest rates), trade war, global slowing. A lot of other countries hold US paper........ It makes you wonder how much more debt the US can endure and maintain a strong dollar.

We all know that there is going to be a correction at some point in the future....but something to me feels different about what is coming. Maybe I am just a paranoid investor...I have to quit watching the prepper shows!

Besides gold what is the best way to protect ourselves in the event that the US has a financial crisis that affects their dollar?

Q: I am currently holding the following investments in almost equal amounts (20-25K per):
AQN, BNS, BCE, ZAG, ZEM. BEP.UN. CU. ENB. FTS, NPI, RY, PEGI. PPL. REI.UN. SLF, TRP. T. FN. TD, VXC. VSP plus $8K cash.

Are any of these questionable in your opinion? Are there other areas that would assist allocation? I am 72 , retired and need the additional income,

Q: Can you please recommend a value ETF in Canadian and USA dollars. Which one is your favourite value ETF

Canada
Global
USA

Thanks for your great service
Hector

Q: What sectors are best for stagflation?
What sectors preformed best during the 1970’S?

Q: Do you have any suggestions on where one can invest in the vertical farming business?

Q: Good morning.
It seems like the markets took a sudden wild turn on Thursday. Since then gold, utilities and reits are being booted out the door at a fairly high rate. Can you offer up a suggestion of what the markets might be thinking? Are they simply dumping equities or are they moving into some other sector?

Q: Given the market today - and what (if anything) we can intuit about the future - which sectors would you be inclined to overweight...and which to underweight? Thank you.

Q: Hello,

What is the reason for tech sector getting beaten up today? Thanks.

Shyam

Q: Thank you for answering my past questions so clearly.

All the ETF's below mirror the S&P 500.

BMO S&P 500 INDEX CAD UNT ETF Symbol ZSP (not currency-hedged)

VANGUARD S&P 500 Index ETF, Symbol VSP (currency-hedged)

iShares Core S&P 500 Index ETF, Symbol XSP (currency-hedged)

Over the last decade, as expected, XSP and VSP have appreciated as much as the S&P 500 has -- a little over 100%.

ZSP has appreciated about 180%. Likely, that is a function of the currency hedging/not hedging.

Please explain.

In your opinion, will ZSP continue to outperform?

Thank you.

Q: The direction of Corporate profits is relevant to investment strategy. I am finding an annoying number of contradictory statements on this matter in the financial press. Case in point: in Saturday's G&M Report on Business, the Chief Investment Strategist for BMO Nesbitt Burns says "However, earnings have been continually beating upwardly revised expectations and are now up more than 8 per cent year-over-year in the second quarter." In the same article, the Managing Director of Guardian Capital says "....there are clear signs of the global economy slowing and corporate earnings growth trends continue to decline markedly." Seems to me this is a matter of fact not opinion. Can you tell me if corporate profits are going up or down? Thanks..

Q: Peter,

What do you think of the low volatility ETF's especially in our current environment? Do recommend them as part of a balanced portfolio?
Thanks for your valuable service.

GM

Q: Today, the 10/2 year spread just dipped into the negative territory. What are your thoughts for investors going forward and how do you see this as an impact for the global economy?

Thanks,

Q: https://www.cnbc.com/2019/08/26/lehman-like-drop-nomuras-masanari-takada-warns-it-could-happen-in-a-week.html Please comment on attached article.Thanks for u usual services & views

Q: Hi 5i team, do you have any advice if US China trade war escalating ? Which Canadian sectors will be less damaging and which sectors will be affected most?

Q: I could use your guidance. A good friend has recently inherited $800,000. He and his wife are in their 60's, retired with a small pension. They are conservative people who have no investing experience and would like to invest the funds in "safe", dividend paying stocks/ETF's to augment their pension. They currently have no money in the market, with all their net worth (excluding the pension) in real estate. They have reached out to investment advisors who want to charge them a flat 2% to invest their funds and have asked me if this is reasonable. They need these funds to live off and the thought of paying someone $16,000/yr to invest the funds seems ridiculous to me. I would like to help them and was hoping you could suggest a balanced income generating portfolio.........perhaps a mix of a few blue chip stocks and ETF's.
Many Thanks
Scott

Q: Hi,
I'm currently in my late 30's and have some funds in a LIRA from a previous company pension. They were invested in some funds with Sunlife before but now just sitting in cash waiting to be in invested. I'm looking for long term capital appreciation as I won't be able to take these funds out until retirement. Looking to increase my US and Intl exposure, which ETFs would be best? Currently own VGG, VUS, XEF and VEE. Should I increase these weights to my desired % or add any others? Looking for low MER core positions. Also should I approach investing in my RSP and LIRA in different ways or would you view them as the same? For example, would you buy stock A in your LIRA instead of RSP or vise versa.

Thanks!

Q: Due to extraordinary volatility, I have reduced above stocks to minor positions and have looked at healthcare stocks. Not sure, whether this approach is realistic. Technology seems still to be surging after setbacks. Your assessment is appreciated.
Thank you, Team!

Q: Portfolio Rebalancing: I am a senior and have a "balanced" investor profile. I am supposed to be 60% equities and 40% fixed income.
Currently I have 20% cash and only 5% fixed income - all of which are preferred ETF's like CPD, or something like ZWE.

I hold most of the companies in both your BE and INC portfolios as well as a number from your G portfolio. The performance has been very satisfactory. Thank you! Hence I have been reluctant to "act my age" and move to 40% fixed income.

This is turning out to be a difficult assignment in part because of "greed" .... or FOMO .....and wanting to hang on to the successful 5i stocks. The relatively few that have not performed have been sold, e.g. NFI, GUD, etc. and are part of my cash position.

The larger part of my problem is TIMING i.e. my concern regarding buying bonds right now given the excellent one year performance of bonds. Am I too late to make this transition from a timing perspective? Concerns here are regarding how much further can bond interest fall? And when the rates start moving up again, would not any increase in interest rates be offset by decreases in most of the bond funds that 5i has been suggesting for Fixed Income?

I would appreciate your guidance in understanding WHY I should buy more bonds now and developing a strategy to do so.
( I understand your not managing my portfolios but any help, information etc would be appreciated).

Thanks.

Q: I am retired and wish to structure a conservative portfolio consider the uncertainty of the economy. I favour banks (RY, TD), utilities (Fortis and Algonquin) and Telecoms (BCE and Telus), BrookMiled Asset Management, Brookfield Renewable and Brookfield Infrastructure Microsoft and Berkshire B.

I would lik´to have 40% in bonds and favourCLF, XBB, XSB and XSH. I would move from FTB even though it has a higher yield but a higher MER.

Your comment would be appreciated.

Thank you.

Donald

Q: I have 5-8% (20%total) positions on these utility type stocks; if we enter a melt-up type scenario in the markets? Would it be prudent to reduce my utility type exposure by selling 1/2 positions and invest in growth type names like Vtv, vfv, etc.? Or would it be in my best interest to hold steady and ride the curve and collect dividends, I'm approaching 70 years of age? Thank you!