Investment Q&A

Q: Hi 5i,

In a recent newsletter by Richard Bernstein Associates they talk about a coming paradigm shift for investing in the next decade. They talk about the breakdown of globalization and the persistence of higher inflation and that asset class leadership will change.

They suggest the new paradigm will be to move away from long-duration assets (i.e. growth, technology, cryptocurrencies, residential real estate, and long term fixed-income) and that the longer term opportunities are in pro-inflation assets such as energy, materials, industrials, commodities, commodity related countries, gold and some real estate assets.

Question 1
I know no one can predict the future of the markets but I am interested in getting your thoughts on their paradigm shift idea?

Question 2
How would this paradigm shift be viewed through the lens of an ESG type of investor (i.e. someone that doesn't want to invest in fossil fuels, companies that wreak havoc on the environment, etc.?)

Thanks!

Q: Could I have your views on the latest quarter. Any changes to the high monthly dividend.

Q: Greetings 5i,

AVAV has poped up and seems interesting. What does 5i think of this drone company? It produces and works on Military drones, Agriculture drones, surveillance drones, research, etc. Has had quite a run up lately.

Cheers!

Q: Hello,

Can I have your thoughts on the 1-3 year potential this stock? Thank you.

Q: Good afternoon 5i team,

WM continues to perform poorly, what is your view of the stock at this time?
How important is the appointment of Tony Manuch as Chairman of the Board today?

Thanks,
George

Q: Ross Healey on Market Call this morning was asked a question about WSP . He didn't just dislike it he said " it belongs in the trash bin " and went on to make a case that it was WAY over valued . He was scathing in his criticism ...... I own it and sitting on a 278% profit and because of that rise it has risen to an 8.4% position ..... Which is a tad over my comfort level but not unduly for a blue chip company . But I've got to admit he scared me a bit .... Could you comment on his thesis ? Thanks Garth ....

Q: Hi,

The drops in SBUX, is this a good time to start a position? Obviously the Howard has a lot of experience and is a good capital allocater. If he thinks the company is better served by investments rather than repurchase..that should be a better move. What are your thoughts? Thanks.

Shyam

Q: Your current thoughts on TER please. BUY, HOLD or SELL at the current level

Q: When I look at the financials of goeasy I see a growing top and bottom line. Cheap valuation but my concern is the negative free cash flow. Can you please help me understand this and how concerning is it. I've been running a DFC model on all my stocks and don't like to see negative numbers

Q: Thinking about purchasing a little bit of these before the split. If I were to buy the CDR version in Canadian funds, on the NEO Exchange, would I still get some kind of split, or would they not be eligible? Also, is there any big disadvantage to buying the CDR version? Thanks so much…

Q: Hello team,

Ross Healy was on BNN and suggested that BAM is valued at the absolute top end of it’s range “the stock is at 2x book value which is at a high over the last 15 years”. Not done he then added “the 2022 earnings have gone right into the ditch and our FMV has cratered with it, it’s no wonder shares are softening.”

I follow Brookfield as closely as anyone and earnings going in a ditch? I see a beat on DE, FFO, increased flows from private funds. I see increased tailwinds from the spin off to the transition fund to the increased fee bearing capital and continued capital deployment. Also, I see the CURRENT NAV at $68 a share so a ~13% discount.

Needless to say I am on the polar opposite side of his commentary.

What am I missing hear and can you please elaborate on his argument.

Thank you.

Q: I hold this ETF in my riff along with canadian BCE and T Its performance and yield are not the best. I initially liked the mix rather than just adding something like verizon or ATT US telecom exposure. Is this worth holding in this enviroment? thanks for your opinion

Q: I have owned XIT since 2017 and use it as a proxy for my technology allocation. Based on trying to keep relatively close to my allocation targets, I have trimmed it 14 times and added it 3 times (most recently adding at $47 and $41.

It looks to my amateur eyes that we are near a reasonably strong technical support level of +/- $41, which leads me to consider topping up to my target weighting again. In January I also thought we had support at $46-47...wrong.

However, the forecasted aggressive interest rate hikes might be a headwind to each of the underlying stocks, in which case I am more than happy to sit on the cash to see what happens with the next rate increase or two.

So, it really comes down to SHOP, CSU, GIB.A, OTEX (over 74% of XIT). When you look at each individually, and then in aggregate, what does your crystal ball say for adding at this time? I suspect your answer would include...if it is an asset allocation question, just add/sell now.

Your thoughts? Thanks...Steve

Q: This company has been on my radar for quite some time. Despite major enhancements to the manufactured product, unlimited pattons, dealerships throughout the world, & attracting major investors, most notably Eric Sprott, the company continues to struggle to get those products out to Market! I fully understand that Covid has contributed to some interruption. Studies keep showing that there is a desperate need for such a product in todays market place. Just looking at financial results for year ending 31/12/21 is both mind blowing & simply difficult to understand! Would really appreciate your comments on the latest financial results and your assessment on where you see this company going! Thank You in advance.

Stan

Q: There have been no questions on STEP Energy since it's fall from about $13 down to below $1. It's now at about $3. Do you see more recovery here? Is the company healthy? Thank-you.

Q: Hi
I owned BIP.PR.D for a couple of years and liked the steady dividends. I am looking at a) another Brookfield preferred that is similar or
b) an ETF that has mostly rate reset bons with a decent dividend or
c) another preferred share from a stable company, like fortis, bce, telus, enb, trp, etc
I would like something that provides 5%, has at least 2 years shelf life. Is it possible to provide maybe 5 choices, ranked that meet the above criterion?
As always great, Len

Q: Looking at companies in these companies, some have more current business (EXAS) while others are based more on potential. Can you please rank each in order based on these two approaches:

1. Most growth potential
2. Best overall investment

Please comment briefly on why you would place a particular company as "Best in class" for approach 1 and 2.

Q: I heard someone on TV, on BNN I think, say that there is currently a severe housing shortage in the U.S. Doing some research I found one analyst stating a shortage of 3.8M units. Whether or not this is considered "severe" for the U.S. I have no idea. In any case many companies in this discretionary sector are down substantially from their highs. Could you provide your thoughts on investing in a home builder at this time? Preferably for a 2 to 3 year hold. Would Toll Brothers have the top ranking or would another builder rate better? Many thanks.

Q: I recognize this is a timing question so apologies in advance. My portfolio is 100% equities (no bonds). As I approach retirement I am thinking of moving 20-25% of my RSP/LIRA into bond ETF's. With rising rates and high inflation am I best to wait this out until we get closer to the end of the rate hiking cycle? If I was to time it perfectly (I know, I know) would it be to buy the bond funds at the interest rate peak? Please recommend a few ETF's to achieve a balanced bond portfolio and any thoughts you have on timing this.
Thanks
Rob

Q: With rising interest rates and/or possible recession, do you still like EXPI?


Leo