Investment Q&A

Q: The size of the Ontario Debt and ongoing deficit are staggeringly huge and will weigh on the economy for decades. And the resource economy out West is severely damaged. Are these not dominant macro factors that will limit Canadian equity returns for many many years to come? If I had a blank slate of where to invest should I not take one look at the Canadian economic picture and just take a pass, 5% position at most? Tens of billions of capital investment dollars have left Canada for good reason, should not we small investors do likewise? Would value your opinion. Thanks.

Q: Do you know the P/E ratio on EPS estimates for 2018 & 2019 for the:
- S&P500
- TSX

Thanks!

Q: I am presently in 70% cash and wanting to rebuild my portfolio--with the emphasis on --dividends ---blue chips and diversity.
Could you please suggest 3 stocks in each of the 11 sectors that would fit
these requirements.
Thanks for all your suggestions over the years
Peter

Q: 12 years of Tse pain
On Oct 31/07 the Tse closed at 14,625, Cnd dollar was at par to U.S and Wti was $94.51 Dow Jones was 13,930 and 10 yr treasuries were 4.47%
I realize that Tse was strong in resources and weak in Tech ,however there must have been a huge flow of funds to foreign markets
In 2007 was there a restriction on foreign content in RRSPs and did Etfs exist at that time?
Do you think that Tse will soon have its place in the sun as U.S. investors can now buy at a 30% discount?
Is Dec 27 the last day for tax loss selling?
Thank you

Q: Is there an end to this stock slaugther?

Q: While your comments could apply to both our Canadian and US markets it is interesting that your slant appears to lean toward US markets rather than Canadian even though the bulk of your research covers Canadian based companies. Sure the US markets are still up this year but it is quite a different picture when looking at the Canadian markets. We are ' not still up' this year but down since January. Interest in the Canadian equity markets is waning for various reasons, taxes, regulatory hurdles, etc. So could you perhaps add some comments that address our markets and investment environment.in the context of our recent performance and future expectations. Thanks.

Q: I have read that the spread between US treasury 10 year and 2 year bond yields has been narrowing, and is currently sitting at 30 basis points. Assuming that the US spread continues to narrow and possibly invert, can you comment on the effect that would have on the Canadian financial and housing markets? And in your experience what would be time frame once the US yield curve inverts for those markets to be influenced? Many thanks!

Q: Generally, if you took out the rise of pot stocks from the TSX year to date, where would the bourse be at today?

15,800 maybe? Or is the sector not that influential yet?

Q: Do you have any feel for what is going on with the TSX, one would think that resolution of the NAFTA issue would have settled down canadian markets but they seem to continue their downward movement. Thanks

Q: I just read the report by Eric Lascelles and the team of economists at RBC (Sept 7/18).They give a 1% probability to a modernized NAFTA that produces positive economic outcomes. All the other scenarios are negative with the highest probability (35%) given to the US getting all their demands with of course negative economic effects for all parties. Given this, a sane person has to wonder why we are even discussing changing NAFTA. As investors though, are we better to ignore all of this and assume well managed Canadian companies will adjust and emerge competitive once they know the new rules, or should we try to be more proactive. I am assuming you lean toward the former.
Your thoughts are appreciated.
Mike

Q: It has been often suggested that an easy way to create a portfolio is to select the top 2 highest market cap stocks in each sector on the TSX and
hold them. What is your opinion of the performance of such a portfolio? Joe

Q: I am wondering why we would even consider buying Canadian stocks at this time with Donald in power? He looks to kill our economy and realistically could along with many others to make America supposedly great again Thx James

Q: I am interested in your views on the current market cycle. How much longer do you think price appreciation in the Canadian housing and stock markets will continue? And what would be factors that could cause a weakening in those markets?

Q: Hi 5i,

Peter said on May 16th "May I add a comment to Saeed's comment.On May 9 Technical Analysis provided by 5I show that PHO has broken out to the upside,Today it touched $2.14,a 52wk high."

Where can I find Technical Analysis by 5i? Could you please provide a link?

Thanks very much.

Q: Hi Peter,

With the TSX not doing much in recent months, are there any sectors in it that are starting to look good? Any sectors that could see some positive movement in the near future? Any recommendations in those sectors? I'm looking for growth with medium to high risk.

Thanks as always. Please deduct as many credits as appropriate.

Q: Hi Gang,
Noticed that the TSX traded over double the usual volume on Friday, is this great news as the institutions are buying in or is it one of those Fridays with option expiring and does not mean anything.
Thanks
Anthony

Q: The latest Liberal budget seems determined to put the nail in the coffin for Canada's economic future.
Some points from the Financial Post: “Declining business investment remains a critical concern for Canada, which is a signal that entrepreneurs, investors and business owners don’t see the country as a hospitable place to do business. From the end of 2014 to the latest quarter with data, the level of (non-residential) business investment in the country declined by 19 per cent, after accounting for inflation. Among a group of 17 industrialized countries, Canada now has the second-lowest level of business investment as a share of GDP.”

Your thoughts?
What is the mood of investors and business owners that you have spoken with?

http://business.financialpost.com/opinion/morneau-delivers-a-budget-in-deep-denial-about-the-dangerous-territory-were-in

Q: I, like everyone like rising share values but as an investor still in the accumulating phase of life, lower share prices equal more shares bought every quarter or month. If one is in invested in decent financial instruments and payouts are not cut then the price of the underlying security does not matter unless you have to sell. I remember 2000 and 2008/9. We were due for a correction and we will again survive. Just my two cents worth, Steve

Q: I wonder if I could get your take on what Jim Cramer says is behind the current mess in the market. According to him most of the problem is hedge fund managers having to sell stocks to make margin calls on heavy, leveraged short bets they made on VIX volatility funds. It makes as much sense as any other reason I've seen. If it was just fear of a rising yield the big banks would be rising, not leading the way lower. https://www.cnbc.com/2018/02/08/cramer-these-4-securities-will-signal-the-end-of-the-sell-off.html

Q: I have been wondering for some time about market valuations and your recent comment about inflation being bad for markets has raised it again for me. If a market is doing reasonably well and inflation sets in could there be a reset of stock valuations. If so what sectors could get re-evaluated and is it across the board in a given sector or specific to certain size market caps?
Thank you
Clarence