Investment Q&A

Q: With a Democrat Senate, higher government spending, rising inflation and an expanding 10 yr yield, what would be your fixed income allocation for the next five years? Do any of the above choices make sense? Thanks.

Q: Good morning - I was reading an interesting GS report which is calling for a structural bull market for commodities, starting in 2021. Let's say GS is correct. Assuming that, what would you suggest for a Canadian investor, both at home and in the US. Also, is there an ETF or two that you would suggest to address this assumed trend. Finally, do you think GS is on or off target here?
Thanks

al

Q: Hi guys,

Should the Democrats hold all 3 houses, what is your prediction for the North American markets. Drastic sell off or same as before.

Thanks

Jim

Q: Which sectors do you expect to perform best in 2021?

Q: Hi 5i team,
Peter, I enjoyed your last FP column and your fearless 2021 predictions. In your predictions a year earlier for 2020, you predicted the U.S markets would beat Canada, and they crushed Canada. For 2021, you did not make one for Canada vs the U.S, although you said technology would outperform, where the U.S. has a big edge. While I have a growth and U.S. bias, I did move a chunk of funds back to Canada in 2020 to pick up some value names and some newer tech names. Hence, my question. Who will be the big winner in 2021 – the U.S. with its big tech, healthcare and consumer names (the favourite) or Canada with its financials, energy and materials names (the perennial underdog)?
Thanks again for your insight over the years.
Dave

Q: Are we approaching a point where we should be cautious about putting new funds to work in the Balanced Equity 5iPortfolio? Valuations are high and for some reason one of the world’s best investors is sitting on mountains of cash?

Q: As an answer I'm looking for a general discussion (not a treatise) on sector allocation.
Have you or would you produce a recommended weighting of sectors, and where applicable, sub-sectors.
Are the traditional sectors still relevant? Should we be trying to fit all the emerging technologies (SEMI CONDUCTORS, CONSUMER PRODUCTS, 5G, GAMING, EV, AI, AUTONOMOUS DRIVING, SAAS, GREEN ENERGY, RENEWABLES, GENOMICS to name a few) into either INFO-TECH or one of the traditional sectors. What percentage of a portfolio should be in emerging technologies regardless of sector etc?
thanks, Hugh
p.s. you answer many questions that involve sector allocation - you may want to create a category for this in your searches.

Q: On December 23 of last year, you suggested an asset allocation for 11 sectors for a retired dividend-income investor. I found it helpful.
For 2021, what would you suggest the allocation for 11 sectors be for a balanced portfolio with the focus tilted more to capital gains?.
....Thanks.....Tom

Q: Question regarding the Canadian dollar. Do you think it will continue to gain on the USD and your best guess at a timeline regarding a peak if you see one? Also, what do you think a peak might be ($.90)? I realize this is speculative but appreciate your best guess.

Q: Peter; If the Georgia election is “ overwhelming “ in the Democrats favour - basically rejecting the Trumpaffoon - is this a market changer and possibly the end of the clown politics? Crystal ball question I realize. Thanks . Rod

Q: What sectors would decline if inflation and/or interest rates were to rise.

Q: Hi, thanks for the work that you do for the average Joe.

I am about 8-10 years from retirement. Earlier this year, when good Cdn blue-chip dividend payers were "on sale", I started creating an income portfolio in my non-registered account. The idea is that these stocks would form the basis of my income in my retirement as I don't have a DB pension.

I am currently in the highest tax bracket so will pay significant taxes on the dividends that I receive until I retire, in 8-10 years.

I also have funds in my TFSA where I focus more on Growth.

Am I too young to start creating a dividend account when I'll be paying significant taxes? Should I instead focus on Growth stocks now, and convert those to dividend paying stocks when I retire?

Or does it really matter that much?

This is a non-urgent question and can wait until the NY.

Thanks
Robert

Q: Happy New Year and thanks for everything you do. This year has been by far my best year in the markets thanks to the patience i have learned through the daily Questions and Answers. Just a general question re the markets. I get asked by alot of people who can't get their head around that so many people have been out of work and the gov't continuously dishing out money, but the markets keep on chugging along like everything is good or going to be good in the near future in the world. In other words there seems to be alot of disconnect, thanks?

Q: Good morning, as a relatively young retired investor I'm still leaning vs growth. As a portfolio year end adjustment I would like to hike my exposure to materials by approx 1%. Having said that my gold exposure has suffered and now sits at less that 3%. I own LUN at 2%. Where would you add ? In real estate I have a 2% in DIR and 1% in TCN.. Would like to add to maybe 5% of portfolio. Dividends are welcome but not a necessity since I can buy in either my Cash or in my RIFF account. New suggestions are welcome since your expertise gave me handsome results since I've subscribed to your services.

Stay safe,

Yves

Q: I find it quite interesting that there may be a possible correction in January due to tax-related selling. I own most of my securities in a TFSA and/or RRSP so i am not (in the short term at least) motivated by tax implications. Should I sell now and try to pick up shares at a discount in January?

Q: I am getting scared! This is way too many profits in such a short period of time, in a pandemic, the world shut down, how can that be? So many unemployed. I have never made this kind of money, EVER! Fear and greed is setting in. I am fearful of the market, greedy to let it keep moving up even though it does not look anywhere near sustainable. Help us out here, Peter. Have you ever seen increases in prices so quickly, what is going on? P/E, revenue, earnings, sales, nothing seems to matter. A vision of 2000 keeps rolling around in my head when I guess something like that happened and then everything came crashing down, HARD!

Q: Retired dividend-income investor. For the equity portion of a typical income focused portfolio, can you give me your suggested asset allocation for the 11 sectors. Thanks in advance...Steve

Q: Good morning, The year end once again brings us the many different opinions as to what lies ahead in 2021. I have read several analysts giving their overweight and underweight suggestions and am struck by the fact that some are overweight financials and utililies and others are underweight. With so many different opinions, I believe one has to choose who makes sense and once again, I choose you. In terms of sector weightings what does your crystal ball say? Of course it can vary, whether one is income or growth focused but with that caveat in mind, what do you think? Thanks

Q: commonly, all of these stocks seem to be in sectors that are doing well i know there are many more are there any sectors that you might particularly favour this upcoming year?

Q: I am overweight in the Utilities sector and underweight in Materials. I am considering selling some BEPC and using that cash to add to Materials. Is NTR recognized as belonging to Materials in the Portfolio Analytics ? What other suggestions would you have for Materials stocks at this time?
By the way I have found the Portfolio Analytics a great tool for following and planning my investments -Thank you for your great services .