Investment Q&A

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.

Q: Building up my ETF portfolio and have some cash to deploy. Of XEF VE and SPY which is the best one to add right now. Crystal ball yes...balanced follower, 5 year time horizon. I am currently over allocated to Canada and on target for emerging markets a little light USA and international. Likely to buy a bit of each if not strong case for one in particular.

Q: Reviewing the issue of asset allocation and I must say that I have been avoiding bonds. The ETF approach interests me, but when to by is a mystery, re; haven"t seen bond gains lately. Appreciate any clarification you can provide & thanks!

Q: Hi, I do not have any bonds or fixed income. Looking for one or two prospects to start, with about $50,000 to invest. Would like 3-4%+income. What are your views on the above, and of course any other you may suggest. Would like one size fits all if possible.
Also in a possible 30% downturn in the market , how much would a bond etf cushion the blow?
Thanks

Q: I am in my early 30’s. In terms of creating a strategy for buying and selling stocks shouldn’t I just always be buying stocks, even if the market goes down?

If I have a 30-year run way until I start withdrawing or using the funds wouldn’t it be best to just find great companies to average into?

Your thoughts are greatly appreciated in advance.

Thanks,

Dave

Q: Hey Guys,

What are we to make of the constant negative headlines on some websites (zerohedge in particular) that talk about a recession coming this year?

I have been hearing in the headlines for years that there will be a recession...but it hasn’t happened yet.

I just don’t want to invest right before a major downturn like in 2008.....

What to do?

Thank-you.

Dave

Q: Hello Peter, I am thinking of shifting my portfolio to bit more defensive and generate some income too -
1. option 1 - To increase allocation to fixed income / bond type position.
2. option 2 - To buy more of defensive positions - like BNS, BCE, CU, FTS, MCD, HD, JNJ,
3. Counter position - that would have counter move to market drop.
Question - How would you approach / handle the situation and what would be your choice in each option.
Thanks

Q: What would you suggest looking to buy in anticipation of a potential crisis in the Middle East which unfortunately now seems imminent. Oil and gold I suppose are the obvious sectors that come to mind. Thanks.

Jason