Investment Q&A

Q: Sometimes when markets feel a little "frothy" I wonder what is behind the movement. I think one causal factor would be that certain investment managers, such as for larger pension funds, have cash flowing from contributions weekly (or at some regular interval) and they MUST keep cash balances within the range of their investment portfolio objectives so they need to buy SOMETHING!

If this in any way accurate? How much does it move the needle? What other strategies can these managers use to reduce volatility? (Maybe this comes full circle to Dollar Cost Averaging and that much of the time the market is at a new all-time high.)

Thanks!!

Q: I know market timing is a mugs game but would welcome your thoughts on the risk of a market top. What signs do you look for in determining when to reduce exposure? Is there an optimal cash level to provide some insurance? what inning are we in?

Q: What % of a growth portfolio would you suggest to be in small caps for an investor in his 50’s?

Q: Hi there, what are your current overall favourites names in the US space for growth with a decent risk to reward (ie: not looking for all or bust type names).

Thanks!

Q: What do you folks think of the proposal to cut back required financial reporting by public companies from quarterly to semiannually.

Q: When people compare investing a lump sum to dollar cost averaging to market timing they usually trot out long term averages showing lump sum is better. Doesn’t context matter? Valuations are currently elevated. If they ran the comparisons after eliminating the years when valuations were at or below some long term average would the answer change?

How would you approach this question in today’s market context.

Appreciate you get a version of this question regularly but I’d like your answer for today. Thanks!

Q: Please comment on how to manage position sizes of portfolio with different equity ETFs. Max / Min weight of individual ETF? Thanks in advance. Your comments are very much appreciated.

Q: Is there a Link for Peter's BNN Interview yesterday? Thanks! Austin

Q: Hello 5i Team
I had the pleasure watching Peter Hodson on BNN today and his top picks. What would be his three top picks on the Canadian Stocks ?
Regards

Q: FYI. I was listening to the chief economist at RBC the other day and she said the CUSMA renegotiations are to determine what the trade agreement will be starting in 2036 , 10 years from now. This means the current agreement terms would remain for a significant period of time ( unless Trump totally throws the whole thing out ). Can you confirm this ?

This important point doesn’t seem to get recognized by the media. Thanks. Derek.

Q: Hello folks,
Hope you had a great Money Show!

What did you learn from the questions and feedback of the attendees this year? Your measurement of "Financial pulse" of the public so to speak! TIFF prevented me from attending!

Q: Hello, do you have any plans to add a comparison option within that chart display when viewing a companies profile? This would be very useful when comparing different companies within the same industry and aid in researching companies on my buy list. Also, would be extremely helpful when comparing a CDR performance with its US listed twin to determine the impact of currency hedging on overall return over a period of time. Thanks for the great service that you provide.

Q: The last investment and economic report cards were aug 14 and july 31. When can we expect the next one?

Q: Please advise which covered call QDAY, SDAY or CDAY ETF you would recommend and why since I can have money to buy one ETF only or you prefer another cover call ETF.

Thanks for the great advice

Q: Dear Peter et al:

Everyone including yourselves talk about 7+ T USD on the sidelines when a question about market correction is asked. This money will step in and protect the markets from a crash. That seems to be the
thesis here.

But the huge cash reserves of big companies, (BRK for example) pension funds and various PE firms
(listed and unlisted) have ALWAYS
been a feature in the market, no?.Even during the bull or bear
market this Cash on the sidelines has been a constant, right?
So, the question is what is the range of cash on the sidelines? Can this cash on the sidelines act as a " metric" to signal Bull or Bear market?
(Just like your thesis on VIX. 40+ means buying time).

In simple terms what should be the "Normal" cash on the sidelines?!

Q: Just reading the question from Lisa. That is a very interesting point that 95% of all bought call options expire worthless. Can you recommend a one (couple) good books that focus on selling call options and strategies?

Q: How can you find your previous market updates?

Q: Will AI make software applications obsolete in the near future?

Q: In a recent market update you stated that the markets were approaching or beginning to appear a little frothy!!

Given that the markets have continued to reach all time highs (albeit earnings have been very good) do you continue to view the market as somewhat frothy or full on frothy??

How would you position your holdings going into a potentially frothy market?

Thank you
Tim

Q: Just want to confirm my understanding of attribution rules on these points below:
1. If a grandparent gifts $5,000 to an adult grandchild (over age 18) to be used for investing purposes, there is no attribution rules applicable.

2. But no such luck, if gifting funds to a spouse or to a minor child under 18, where the funds are being used for investing. Attribution rules will apply.

3. If a spouse puts the gifted funds in a TFSA, how will CRA be able to track attribution back to the gifter?

Thanks.