Investment Q&A

Q: Something that would be of enormous help to members currently buying stocks on dip (as opposed to ETF(s)) is a write-up that identifies companies (other than energy companies) that have balance sheets in a state where much lower sales for over a year could mean bankrupcies or share dilutions. I'm looking at forestry stocks, for example, and question what will happen if their sales go down 50%. Will they be able to pay their debts if this goes on 12-18 months? Even A&W, which appears on the surface to be a safe and boring income stock. What if sales go down 50% for a year, could franchise be under enough pressure to be forced to walk away? Buying a franchise is very expensive, afterall. I realize this could take time to write something like this, but no-one in the news is talking about the fact that some companies that need a minimum of sales before running in trouble with debt. Would appreciate your thoughts if you think this thesis is without merit. Thank you team!

Q: Nazim asked a question today that has been on my mind, "why hold stocks?" To follow up on your answer in which you opined that much of the downside may already have factored into prices, how can that be? The market is only down to levels it was at in the fall/summer. I am a long term investor but I moved to cash last week because of the risks. In weighing the potential downside risks (which could be huge) vs short term upside, why stay in the market? I just don't see how the effects of this virus will not be a lot worse than what has already been accounted for in the market. People are not going out, travelling, etc. and this must have a huge effect on the market going forward. Is this not a recipe for a recession? In which case, why not get out of the kitchen?

Q: how did low interest rates in japan affect there pension funds . did any get cut.or did employees have to pay more. thanks brian

Q: hi Ryan,
today market is 900points down again. at this stage which five stocks in US you prefer to jump in without any sector taking in consideration?
which sector you like the most?
Thank you,
KT

Q: Gey Guys,

I basically follow your balance portfolio and the stocks that I hold are between 2% to 6 %. Does it make sense in these unsure days to lower everything down to 3% and hold more cash?
Thanks
Jim

Q: Hello team.
Your thoughts about the interest rate and FX ( CAD/USD )move back home here after Fed cut half percent?
Really appreciate

Q: Hi Gang,

What are your thoughts on the FED rate cut just in? Which sectors do you see this helping and hurting?

Thanks!

Q: Good Morning,
Can I please get your general comments in regards to the rate cut and central bank reaction to the "worst week for stocks since 2008" followed by the "best day for stocks since 2009" It seems these headlines have taken over the decision makers, and more QE/ lower rates because the market has fallen to now Dec 2019 levels- from all time highs! BIG DEAL! There will be no where left to lower rates and so much debt on the government balance sheet when things do truly get ugly. As a young investor am I the only one that feels we should let the free markets play out before the fed steps in, or is this necessary to avoid a recession. It would appear there is really no risk in buying equities since as soon as they start to go lower central banks will prop everything back up

Q: Hi...just read your March 1 email....very timely. I have been evaluating some of my current equity holdings from the point of view of topping up some or all of them over time...to reach my asset allocation targets. I do a monthly review of all of my holdings using metrics like P/E, P/BV, P/CF, ROE, Beta, Analyst targets, charting vs 200 mda and higher highs-lows. Mid-Feb I raised roughly 5% cash (basically trimming oversized positions that also appeared to be stretched) and could direct it to the above list. I am a retired, dividend income investor.

The 4 BNN Market Call guests on Thursday-Friday indicated that legging in to this buying opportunity should be considered, as, in their opinion, the market is extremely oversold. In your past life as a Fund Manager, what metrics did you use to guide your process on whether to buy or sit on your hands? For example, "when the VIX is high, it is time to buy"...the VIX is now at 40.

If this is a fair question, could you rank the above 9 equities for topping up to existing positions? My process, for example, has identified LNF as one of the priorities.

Take as many credits as you think appropriate. Thanks...Steve

Q: technically speaking, where are the support levels for S+P 500,the Dow and the TSX if I were to let some funds go to work in this current downdraft? support levels please...and thanks as always...I know that aiming at a target sometimes misses its mark..

Q: I notice that you are getting questions about what to buy when the market settles and it seems people are expecting this to happen soon. But isn't this something that could take a year or two, as closing plants down,people not travelling and buying things will reduce earnings and put us into a recession?

Q: Could you review the situation with covered call ETFs during this type of market where everything is dropping?
Do you buy covered call ETFs to obtain income?
Do you sell your covered call ETFs?
Do you wait until the market moves upward before buying a covered call ETF?
Do you simply stay away when the market turns and buy the individual security?

Thanks....

Q: I know you don't know where the bottom is in this market meltdown (I wish you did and could tell us - am I the only one owning stocks right now?), but do you have an idea on what the conditions will look like that will stop the meltdown? In your opinion, is this really all corona virus oriented or are there some other forces at play here, and if so what might they be?

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