Investment Q&A

Q: Hi, Thanks for today's Market/Portfolio Update, specially the explanation of inverse relationship between value of USD (DXY) and risk assets ( S&P 500, TSX and Stocks in general). Do you think, the market bounce on Wednesday, was for no fundamental/technical reasons, but was a reaction to news from UK of BOE market intervention through Bond buying to support the fledgling economy and a one day breather to unstoppable US Dollar ascent ? Based on this thesis, besides other technicals, would it be prudent to keep an eye on USD uptrend breaking down, before entering into new long positions. Mr David Burrows of Barometer Capital was on BNN recommended to stay on the sidelines, until the market downtrend breaks and at least 2 days of Buying with High Volume is confirmed with follow through for 5 days. Their firm has 30% cash ( due to Stop Loss liquidations in Tech/Financial and others sectors). They own only defensives like Energy, Utilities and Telcos with 0% Tech. Does this strategy make sense, in your view, as most of us are almost fully invested presently as well as in past ? That seems to be the case for past several weeks and months - we buy/add to positions and stocks only get cheaper over following days. BTW, stocks with higher yields in sectors like Utilities/Telcos/Pipelines continue to get decimated - even though, bond yields declined over past 2 days - Any comments , please ? Thank You

Q: Can you pls explain why China has only 2% inflation, while the US has 8% inflation!?..if so...why are we all not buying Chinese stocks?

Q: No one escapes higher interest that will be with us for a while until inflation abades..As all companies refinance their debt loads , investors tend to shun highly leveraged firms..it almost killed baytex and a few others...what companies/sectors should we avoid?are tech s highly leverage d?and lastly, do we run to high cash flow companies? Many thanks

Q: For a ultra conservative retired income based investor can you please give us your 10 best portfolio building blocks starting a new portfolio?...many thanks...

Q: Stock picking is getting too challenging!
Slowly shifting to broader ETFs. Eg utilities, energy, banks.,
Now looking more broadly at the TSX, NASDAQ, Dow and TSX.
Long term it seems that even among the professionals it is tough to beat the indexes.
Hence my shifting strategy.

Are these indexes revamped periodically?
If yes, how is it done. How often. Criteria?

Would this be the main reason for beating most of the pros?

As usual thanks for your help

Q: With the DOW down 10% and NASQ down 24% YTD , where would the TSX be ex energy after its 20%+ rise is removed ? Also can you please supply support levels with a bad/worse case scenario for the DJ ,NASD and the S&P with the FED rising rates another 150 to 300 bps ( six or seven more hikes)?

Q: This month end rally maybe linked with buying by fund managers either to be fully invested or by artificially pushing up prices to base their bonuses upon...or short cover rally or new money entering the market...what's your view?

Q: Can you please post the total return for the S&P 500 and TSX for both 2020 and 2021. Thx

Q: Does your recommended allocation apply to the Canadian market or all markets?

Q: In a normal market pull back , where do you see support levels in the tsx and the dow ?

Q: How does criteria to be added to the TSX composite and additions/removals to the index work? I have a hand full of stocks I would've guessed would be on it but aren't (SIS, TIXT, CTS, WELL, DRM, PLC). Then, I noticed REAL is on it - would it be up for possible removal due to its decline and smaller market cap? Thanks for sharing.

Besides the above I mentioned, what other stocks might be added to the index over the next few years that you would recommend? GDI stands out as one I would guess? Any others?

Q: What part of the market do you see as undervalued? and can you provide a few choice selections? txs as always...

Q: Do you think the federal budget (and any nasty surprises in it) could have a significant impact on the Canadian stock market? Do you think any sectors could get hurt, or benefit, more than others?

Q: i understand anytime is a good time to buy stocks, but I feel this recent rally is slightly overdone Is this run up a combo of Major trading firms covering any shorts they may have on their books as reddit chases different asset classes and maybe some institutional cash being put to work?

Q: The TSX total return is now positive for the year. I would like to better understand whether the market breadth for the index is quite narrow, and whether the TSX returns are based on exceptional performance for a few stocks only, such as Shopify.

Are you aware of any site which provides details about how each stock has contributed to the overall return of indexes, such as the TSX? I would like to understand how many (and which) stocks are up, and how many are down, over the last year.

Many thanks for your assistance. Best wishes to you and to your team for a very Happy Holidays and a prosperous New Year!

Q: hi, according to the bnn website the tsx forward (I presume) PE is at 24.78, which as far as I can research is astronomical for a "recovery" period. can you shed some light on the tax historical forward PE, and provide some data/statistics on how well the tsx does over the next 6-12 months with a PE of 24.5 or above? I assume you have access to this data?? cheers, chris

Q: Hello Peter, Ryan and Team,
If you were to use the beating the tsx strategy using the dogs, which 10 would you choose today. Please no energy companies.
I got a service error so sorry if this is submitted twice.

Thank you!

Wes

Q: Any bad news causing the TSX has a big drop today? Specially, the technology sector declined more than 5%, any reason behind?

Q: Hello,
Read your article about the economy is not the market and vice versa, you said “just remember that 46% of companies in the Russell 2000 and 35% on the TSX are down over 30% this year”. I was wondering if you had any insight into the real bargains of those stocks that are down in those two indices. Thanks, Rick

Q: Looks like the markets are liking the financial aid packages approved in the last day or two but do you think that this bounce is warranted? Would you start deploying cash here in both the Canadian and US markets or wait for less volatility? What does your experience tell you? Thanks.