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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: Canadian pipelines have suffered along with most of the market during this correction. My understanding is that they are protected by take or pay contracts with the producers. In other words you either take the capacity you agreed to or pay for it. The obvious concern here is that the producers opt to do neither, not having the money and facing bankruptcy. My first question is whether this is even true to any extent. Secondly, what would the response of the pipelines likely be? Do they ultimately become owners of non-producing oilfields?

Secondly my understanding is that shipping by pipeline is cheaper than shipping by rail. Given this scenario the remaining product should shift over time from the rail lines to the pipelines, keeping the pipelines full. The loser becomes the rail lines. Do you consider this to be true?
Read Answer Asked by Larry on March 16, 2020
Q: I have a few questions about negative interest rates:
1) how low was the US and Canadian bank rates back in the worst of 2008, and where are they today
2) what major economies currently have negative rates/for how long/how low (or high?)
3) for those countries with negative rates, has this affected the dividends paid blue-chip stocks on their exchanges
4) what are the best investments for "hiding out" should we get to negative rates
5) could you hazard a guess as to the likelihood of negative rates in N. America
Thank-you
Read Answer Asked by grant on March 16, 2020
Q: Dear 5i team,
Thank you for the Special Report. Could you kindly confirm a few things about the graphs in it, please? My broker account doesn’t show graphs like yours, so what is the blue line and what is the brown filled-in background- I was thinking high and low stock prices, but noted the left and right y axis are different so I think I’ve not got that right. And how do you read the dark blue graph at the bottom- what is the stock’s ‘relative strength’ relative to?
Thanks so much!
Read Answer Asked by Hilary on March 16, 2020
Q: Just before the sharp downturn in market values I sold about 20% of my growth holdings.if I was looking to add a 2 - 3 names back what would be your top recommendations for good value on price and long term growth prospects?
Also, what was the reason for the decline in CBO price?
Read Answer Asked by PETER on March 16, 2020
Q: For someone looking for income, what dividend stocks, in any sector, would you find most appealing?
Read Answer Asked by Michael on March 16, 2020
Q: Hello 5i Gurus,
The central bank authorities at the Bank of England and the ECB have, this past week given authorization to all banks (domiciled in the UK or Europe) that they will be allowed to release ALL of their strategic counter cyclical funds that they normally hold in reserve. From what I remember, this would be several hundreds of billions of pounds or euros. Question is: Does the US and Canada have similar "counter cyclical funds" (not sure if this is the correct terminology)? that they can use to support the economy temporarily?
Read Answer Asked by Keith on March 16, 2020
Q: Hi 5i,

Thank you for the great insight during this challenging time. Can I please ask your opinion on these five existing positions? Each is sitting at a substantial loss and trying to decide whether to sell, hold, or with a Canadian recession on the near horizon:
-Parkland Fuel
-New Flyer
-Cymbria
-Western Forest Products
-Savaria

Thank you in advance. Please use credits as needed.

G
Read Answer Asked by Greg on March 16, 2020
Q: Jeffries has stated that rebound candidates in the market are CRM, CTSH, EMN, CVS, WBA - could you give me an opinion on these candidates?
Seeking Alpha mentioned an expert (I didn't catch his name) predicting that the S& P 500 will hit 2300 before recovering. Your opinion on that? Thanks for being around during this crisis.
Read Answer Asked by Dennis on March 16, 2020
Q: We Canadian like to drive and are willing block pipelines our resources re not worth anything if don’t export them our motor industry is dead how long government will be willing to pay our mortgages and pump funds in to our economy on borrowed funds
I think we re very near reccesion or let’s say reality check
Can I have your opinion on my assessment
We Canadians have very high debt so is our governments
Read Answer Asked by parmjit on March 16, 2020
Q: Can you comment on the repo purchases that have been ongoing and have ramped up recently in the US. Does this add another layer of concern to the markets or just what needs to be done in times like these? Is there any holding that might benefit from this?
Read Answer Asked by Gerald on March 16, 2020
Q: Hi, my question is more about next time the market goes into bear territory...
I currently own "SIL - Global X Silver Miner ETF" and always thought it would do better in market downturn. However, i am down 45% over past 3 weeks. Please help me understand why is it down so much.
Read Answer Asked by Harpinder on March 16, 2020
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