Investment Q&A

Q: Hello Peter and team,
Just a comment. Your response to Dennis on December 18th regarding to what happened to the markets from 1990 to present (technology in relation to yields) is the best i have seen and somewhat comforting that investing in companies like Amazon , Google, etc makes sense. Thanks for the perspective.

Q: Regarding the answer to my question with respect to Nortel and the tech decline received Saturday @ 3:49 a.m., my family held stock in Nortel and I am very appreciative with respect to the detailed and quality of the answer to my question. Myself and probably many others had concerns with the Nasdaq doing what it has been doing lately and your perfectly explained answer made me feel a lot more comfortable. I guess you were working late due to the timing of the answer. Thanks again,

Q: I remember in the (i.e. Nortel -- I even worked as a contractor there -- one of a lot of tech stocks) days when they participated in a massive sell-off which took years to recover. Is this deja vu so to speak?

Q: Hello 5i Team
Why did the Technology stocks
sold off today when yesterday they all (most) rallied.What changed ?

Thanks

Q: U article dated Dec 14 did not show REIT as a sector. Note that U rated ZRE a C non-Cyc. in the Income port. Please advise the sector for REIT .Txs for u usual great services & views Please do not deduct a precious credit

Q: They say history doesn’t repeat but it rhymes. Well the last time we had a PM named Trudeau, we had supply shocks, monetary expansion, and runaway inflation, which was followed by double digit interest rates and much pain. Now I just saw a headline that a senate staffer leaked estimate of 35% inflation increase next year. What would your general advice be to investors in the event that this plays out this time as it did back then?

Q: Wondering when looking at asset allocation, not every sector can do well in all environments. As we see, growth stocks are under pressure as are utilities, renewables, emerging markets, and gold hasn't been doing too well either. Some fund managers brag that they are only in sectors rising and doing well--a reason to invest in their funds/expertise. In a reflationary environment the sectors I listed are not going to do well. However, my problem with holding only a couple sectors is that this can change at any time. So.... what are your thoughts on having this diversification where some things go up and others go down. My experience is that you never know when things will switch. And, isn't a good company that was recommended three months ago still a good company today, just facing other headwinds. OR..... is it foolish to own utilities and these growth stocks in a reflationary environment. Would it make sense to add to utilities/growth stocks as they go down?? Thank you for your insight.

Q: Like many here I am nervous about buying fixed income in the current situation. You often mention that most people will be sorry when things turn around and stocks fall. Well, I get that. Even though we would have enough to survive even with a fairly large drop in the value of stocks. But, I realise that it would not be fun. So, what to get in terms of fixed income. I have mentionned in other questions that I would be inclined to get something completely sure for this component of a portfolio. Unfortunatly, it is likely to lose money, when inflation is considered. So, is it worth it to go further afield and enlarge the fixed income space? Here is what a popular blogger writes about this question. I would appreciate it if, with your experience and judgement, you could comment on it:

Another fallacy to dispel is that the 40% of a 60/40 should be in bonds. Nope. Many govy bonds suck and will be creamed as rates rise. So this is a really bad idea. That fixed income portion of the portfolio should be made up of short-duration bonds, some corporate invest grade issues, a floating-rate bond ETF and a healthy weighting of rate reset preferreds, which rise in value along with the prime.

thanks as usual for the great service

Q: Hi! I have a question about my ETF portfolio. I currently own XIC, XEF and XEC and I'd like exposure to the U.S. market (S&P) and NASDAQ. Should I do this in my Canadian account through a Canadian ETF that tracks the U.S. indices or in U.S. dollars in a U.S. account like the IVV. I'd prefer to do it in CDN dollars. Are there major advantages or disadvantages to either option?

Thanks,
Jason

Q: If you were to buy one stock in Canada for about a five year investment horizon, disregarding any risk factors, but able to sleep at night which would you recommend? Not including Constellation Software and dividends don't matter either way thanks?

Q: Hi Guys
I don't see how bonds can have a stabilizing effect on portfolios in todays fast paced electronic trading platforms.
Between Feb 2020 & Mar 2020 my holdings in XLB dropped roughly 23.3 % XRB also dropped a similar amount.
Looking forward to your answer.
Thanks Guys !

Q: Hi
The income model portfolio contains about 2% fixed income/bonds. Is the model portfolio meant to be followed as it is or are investors to decide on their own allocation to fixed income/bonds? I have been disappointed in my bonds. I know they can help soften the blow in a market crash but this is pretty expensive insurance so to speak. What is your position on bonds? Should one be increasing their bonds at this point in the market?
Thanks

Q: Do you think that Nasdaq stocks are now more attractive as a result of the steep drop in U.S bond yields.

Q: Is the 30 day ruling on tax loss selling based on calendar days or business days and is it based on date of sale or settlement date.

Q: Hi Everyone at 5i! I need your advice. I have a non registered portfolio, half I have invested in Canadian and US growth and income stocks. The other half I would like to invest in something more secure. GICs come to mind, but with low interest rates, inflation and unfavourable taxation, they seem like a loosing proposition. Any low risk suggestions??? Thank you for all that you do!!! Cheers, Tamara

Q: My 20 year old grandson is about to step into the investing world. His plan is long term but his portfolio will be small to start. Can you suggest a starting point? I can teach him all the lessons you have taught me since 2013 but we just need a starting point.

Q: If buying US shares in my TFSA am I better to buy USD then purchase the stock? Or just buy the shares using CAD?

Dealing with about 75K CAD

Q: Hello Peter,

With the uncertainty created by the new variant likely to impact the economy and delay interest rate hikes I am preparing for extreme market reaction in the margin account where I might have to lighten up the portfolio.
I would appreciate if you could grade the sectors and subsectors to reduce first, from the list below.
Industrials, Technology, Digital payments/lending, Faangs, Online Retailers/commerce and in general high growth(&value) companies that have taken a hit over the last week or so.
I apologize if the question has got jumbled up, but would appreciate your rationalized response.
As always, your opinion and suggestions are highly valued.
Regards
Rajiv

Q: Hello Peter,

If one wants to own just one North American stock in the digital payment space, which one would you recommend? And if two, which would be the other one? Would there be enough differentiation or a low correlation to justify having two stocks in a portfolio?
In a similar vein, could you give me your recommendations (excluding GSY) in the lending/credit space?
Thank you in advance.
Regards
Rajiv

Q: For example, I have 200 TD shares at a cost of $50 EA in my cash account with Questrade. I have built this up over the last few years. I have NOT done anything at Tax Time, re: Div Tax Credit, Gross Up, etc. Should I be doing something? Each year I simply filed my Tax return based on what Questrade sent to me & the CRA.

Thank you!