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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: Many on your tax-loss list show estimated revenue growth > 100%; in more than a few cases, > 200%. In the case of marijuana stocks, this is puzzling, as many argue that prices will continue to weaken.
On what basis, then, should we place confidence in these numbers? Take HEXO, which you observed (last August) was priced at 4X forward sales, has since then declined by 45%, but is estimating revenue growth at 280%: what would it take to find its prospects 'interesting'?
Read Answer Asked by John on November 08, 2019
Q: You currently have > 9% cash in the Income portfolio. In the past you have indicated you prefer to be mostly invested. If my memory is correct, your responses to past questions have referenced the Income portfolio being up x% so far this year (now 13%) vs the targeted 6-8%/year, so you are taking your time to find appropriate investments. Respectfully, I would counter with the multiyear performance #s of 2-5%/year (quite a bit below the 6-8% target), so wouldn't you want the cash to be put to work? I know you just added a new 3% position on Oct 8.

So, I am trying to understand...is the 9% cash level is more of a "strategic" allocation (waiting for a pullback...market timing, which I know you don't believe in), are you still undergoing research for the right investment or is there some other reason?

Please note I am not criticizing. I have loads of respect for the 5iR team and have way more confidence managing my own portfolio knowing 5iR is there to provide guidance. I am just trying to understand the purpose for the cash in the Income portfolio. I too have roughly 7% cash and am struggling to find the "right" investment and put it to work.

Thanks...Steve
Read Answer Asked by Stephen on November 08, 2019
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