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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: just a comment about your comments. I am in the real estate business and affordability is not always the driving force in prices. It is demand from offshore money, investors, both locally and from abroad. In Toronto, there is a lot of money that can afford these investments and a collapse in the housing market would mostly hurt the working people who if they had to sell or refinancing would be stressed. If investors have lots of money, they are investing with the risks. they do not need these investments to pay for their own food and accommodation. I have worked through the housing price correction in 1974,1989,2001, 2008 and it was brutal for some people but an opportunity for investors with money. Now we have the additional overseas money which even at 5-10% is paying up for real estate in an already tight housing supply market. Who would want to sell and have no place to live. There may be a correction in Toronto but the investment fundamentals have to change. Keep waiting.....
Read Answer Asked by john on March 08, 2017
Q: This is not a question but just an appreciation of what 5i has done for me and my family. I used to have a wealth MGMT company take care of my funds, but 4 years ago I found 5i. I started small with 5i to test the waters vs. my very expensive wealth advisors (2.5% fee plus 25% of profits over the TSX). In 4 years, my TFSA is up 226%; one of my other portfolios is up 102% in the same period. In 3 years my children's RESP is up 39% and in one year since I transferred all my other accounts I am up 20% in my RRSP; and my largest account is up 19%. The returns are so much higher than my fund managers ever did. In many of my accounts I have not sold any stocks in 2 years, not all have worked out, but my returns have. Just wanted to say a huge thank you.
Read Answer Asked by stephen on March 08, 2017
Q: Hello, my question is about an article I read in CMS. Bill Gross says investors need to watch only one number in 2017 to figure out what returns are going to look like across the various markets, and that’s whether the 10-year Treasury yield crosses the 2.6% mark. As of today the 10-year yield is 2.48%. "If 2.6% is broken on the upside...a secular bear bond market has begun," Gross said. "Watch the 2.6% level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important than dollar/euro parity at 1.00. It is the key to interest rate levels and perhaps stock prices in 2017."
So my questions are, what will happen if it crosses the 2.6% mark? Does this mean that the yield on bond ETFs such as XBB and VSB will increase? Does this mean that this will be good for the stoch market in general? What is a secular bear bond market?Regards, Gervais
Read Answer Asked by Gervais on March 07, 2017
Q: Could you compare Loblaw and Metro? Loblaw is in the 5i Income portfolio, but I am somewhat more inclined toward MRU. I like the ongoing contribution to MRU's bottom line from its ATD.B shares and due to current share price weakness, MRU looks to at an attractive entry point. As always, I would appreciate your perspective.
Read Answer Asked by David on March 07, 2017
Q: I have subscribed to your 5i Research for a few years and have never learned more throughout my years of investing than I have learned over the few years with you. A question that I should know the answer to is a term used at BNN and by you all the time is a stock is trading at 10 times earnings. Does this mean it takes $10.00 of earnings for the shares to go up a dollar? Thank you. Dennis
Read Answer Asked by Dennis on March 06, 2017
Q: Article "Boomers Stuck in an Unfunded Liability"
Thanks for sharing this insightful piece. Could you please provide your view on this article. Do you generally concur with the premise that demographics and retirees/investors return requirements in a low interest rate environment is essentially creating an underlying put on risk assets that could perpetuate for years/decades to come. Also, could this imply a flatter than normal yield curve going forward as short term Fed rate hikes could be mitigated by pension demand at the long end, benefiting both mid to long term bonds and high yielding stocks. Also, I didn't see the name of the author of the article? Any idea who wrote it? Thank-you
Read Answer Asked by Gary on March 06, 2017
Q: Hi Team,

I would like add a high risk/high reward micro cap stock to my portfolio, and would not be crushed at all if I lose a good chunk of my investment should the stock end up tanking.

All 3 of these stocks have had great runs, but I'm leaning toward rolling the dice on FLY. BUS seems the riskiest to me given the huge influx of orders and lack of a lengthy track record of being in business. FTG seems the least risky, but not sure if its growth rate would be comparable to the other 2 companies.

Which of these 3 do you think has the best growth potential for a long term hold? And what other speculative micro cap high growth names do you like right now?

Also, generally speaking, over a similar time frame (say 5 or 10 years) do you think it is easier for a micro cap company to increase its share price from $0.25 cents a share to $0.50 cents a share, vs. a larger company's ability to increase its share price from $25 to $50 a share?

Final question is what are the key metrics you guys look at when trying to evaluate micro caps that often aren't quite profitable yet?

(I understand if you dock me for a few questions here - its all good!)
Read Answer Asked by Jason on March 06, 2017
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