Investment Q&A

Q: Governor B.O.C said things will/can become much worst due to virus if I understand correct market will not do better in immediate future if so why hold stocks?

Q: Hi Team,

I've been through many of these events over past 35 years and I really like to avg in while people are throwing the baby out with the bath water.

Could you guys start a list of 5i stocks which should torque back after this selloff, ie stocks like Shop, LSPD, or any others in your universe that fit this criteria.

I'm certain you will start to get similar questions and it would nice if you could publish an updated list online like the tax selloff list.

For now I'd like your top 5 that have potential for a strong bounce.

Thanks again for all your great work!

Chris M.

Q: Good morning. My question concerns the shut down of the TSX yesterday afternoon. Our CDN platform goes down yet we have some 50 odd CDN stocks trading on multiple platforms that can still be bought or sold. It seems an entire nation of investors and investment professionals are unable to do their respective jobs because our data system is antiquated. Billions of dollars in trades are held up yet stocks with dual listings can be traded. Once again I'm underwhelmed by all things Cdn. The TSX needs to upgrade it's systems. I can see some enterprising lawyers developing a class action lawsuit on behalf of investors and investing professionals who are powerless under these circumstances to do a damn thing in real ttime. Any thoughts or suggestions? David

Q: Hi 5I team, can you explain in what ways the coronovirus affect stock market. Flu virus in the states are infecting over millions of people every years and killing over 100,000 this year .Thanks.

Q: Notwithstanding the Coronavirus (which I understand is a wildcard at present), what sectors and regions would you be inclined to over/underweight in 2020? Thank you.

Q: Hello Peter and Staff
I am looking to find a table of historical TSX returns inclusive of dividends .I can find the Composite returns but I believe those are exclusive of dividends. Also can you please explain what makes up the stocks in the calculation
Thanks for all you do
Dennis

Q: Hi,

I'm looking to start investing a lump sum over the next 12 months or so. What list of Canadian stocks would you recommend at current levels? Do you have 5-7 names that you find particularly attractive right now. Looking for a mix of growth and income with not too much risk.

Thanks,
Jason

Q: I'm in the middle of switching my portfolio to a much more simple style. I've always indexed my US exposure with ETFs like VOO and VFV and have bought individual Canadian stocks just because the Canadian index is so unbalanced, holding mostly resources and financials.

I've looked at VGRO and VBAL as well as XGRO and XBAL. I'm hesitant to buy them because they have a high percentage to the Canadian index. I also don't want emerging markets or any EAFE exposure. I'm a huge fan of Jack Bogle and he preached that all anyone needed was the S&P 500 and a bond fund. Since app. 48% of S&P 500 sales are non US, it seems to me investing in EAFE is unnecessary.

My plan is to go 60%US and 40% bonds. Since Canada represents just 3% of the worlds markets, why do most Canadian investing professionals say to put 30% or more in Canada? Doesn't make any sense to me! Thanks for your help.

Q: B of C has held rates however outlook is projecting perhaps a further rate cut. Household debt load is at an all time high, with little or no margin available for emergency requirements.
Personally I cannot help that a Day of reckoning is coming, as debt servicing for majority of Canadians is coming to a bubble, similar to the 2007-2008 crisis. When home values become an ATM, debt levels only increase further.
What is 5i opinion of this going forward, and if this does occur, would this be the catalyst for the next financial crisis.
Thanks Rick

Q: I have read about the new TSX30 index. Is there an ETF yet that follows it?

Q: Hi Peter and Ryan,
The US market has not done well in May and may get worse due to the trade war with China. The volatility of the market increased significantly. People also talk about a possible recession. I am a long term investor. I have some cash available now. I am a bit hesitant to invest in either US or Canadian market, as the two stock markets are somehow connected. Do you think I should wait a bit or invest in some attractive stocks after the recent market drop? What are they if you recommend the latter?
Thank you,
Yiwen

Q: Good afternoon
I seem to recall that one of your answers to portfolio balancing for ones entire portfolio outside of Canada could be up to 40% US and 10% or so Emerging and ? Europe. I'm approximately 30% US and thinking of going to 35 or 40% due to the strength of the US. May I have your comments on this strategy at this time for a 3 to 5 year time horizon.
much thanks

Q: Can you please give me the total return for the calendar year 2018 for the following:
TSX, Dow, S&P500, Nasdaq, and Nikkei. Thank you.

Q: Jan 18 article on BNN regarding U.S. Hedge fund shorting Canadian Banks. According to them, 80% of Canadian companies are not generating enough cash to support their businesses - the highest in the world. Further they say that 80% of non financial stocks are cash flow negative which they measure as cash flow from operations minus capital expenditures.
Would 5i please comment on this? Most often I read and interpret what I'm reading as a strong opinion from you that most companies that you cover are doing well.

Q: Do you have a resource for accurate tabulated annual returns of the TSX and S&P500?

Q: Hi,
You responded to Kevin yesterday that the TSX Total Return was -8.9%. I found in TMXMONEY symbol ^15NT which they are calling the total return. Using the daily chart I calculate the 2018 return to be -9.6%. Do you know why there would be a difference?
Regardless of the source, would it be possible to include this on your company pages so your readers can easily compare their total returns?

Thanks
Ian

Q: Hi There,
Can you tell me what the total return for the TSX was for 2018?
Thank You

Q: Would you have the 2018 yield for the TSX available?

Thank you

Q: Further to my earlier question today about the so-called predictive value of the inverted yield curve, I think recent stock market action is not due to such a prediction but more due to journalist hype and general equity anxiety. As pointed out yesterday by Stan Wong on BNN, "An inverted yield curve, where short-term rates are higher than long-term rates, has historically been a precursor to an economic recession. We note however that these (recent; ed.)short-end measures of yield curve steepness have not been reliable precursors to recessions. As a recession indicator, the more reliable yield curve spreads have tended to be those with larger maturity gaps such as the two- and 10-year, which still currently indicates a normal yield curve." I do recognize that your table of two days ago did reference the 2-10 yield gap but I still think if a prediction hasn't materialized in 12 months or so, it isn't much of a prediction.

Q: AS per a question August 24 of this year I listed 10 stocks in my TFSA that were sound favorites at the time and i was down and down 7 percent.I have held on due to yours and fund managers advise and am now down 30 percent and am starting to wonder why hold on.I thought the market was close to being done a small correction but starting to feel total capitulation isn't close yet but may happen.High risk tolerance i guess i am not if the correction ends up 50 percent.Will take years to recover.