Investment Q&A

Q: POAHY:US is the symbol in NY for Porsche Auto in Germany (it’s an unsponsored ADR and is not in your data base) . This business is held in the EWG (Germany) ETF. In addition to holding a modest amount in EWG, I also have a tiny position in POAHY. I thought of topping up after reading some near-rave reviews in Barrons on July 6, 2021. Barrons also listed it as a PICK in its "Picks and Pans" on 6 July. I would appreciate very much if you would please care to comment on Porsche Auto Company.

POAHY pays a healthy dividend (4.85%). More troubling than the high dividend is that it does appear to be seriously under-valued. Is it a value trap, you think? And do UNSPONSORED ADRs carry more risk? Thank you.

Q: Hi Everyone! Me again. I have been listening to some financial podcasts and the discussion came around to a liquidity crisis which these folks are predicting may happen in the fall. Now taking this all with a grain of salt, what , in a nutshell , is a liquidity crisis and under what circumstances could this becoming our way??? Cheers again, Tamara

Q: Is it a red flag when a company has a consistently much higher depreciation and amortization costs on the cash flow statement than it has CapEx spending? I have been researching a small UK company involved in online fraud detection. It is in a good space but this is one thing which worries me, together with rather low cash return on invested capital. Any comments appreciated.

Q: Could you please give me four small cap stocks to put in a TFSA taking into account my high risk profile. Could you also rank them with your top pick first knowing you do not favor these type of stocks

Q: Hi, I am interested in measuring the risk of my stocks, what is the industry standard or most widely used measure in the investment community, standard deviation? sharpe ratio? And what would be a good number to indicate low volatility?

Thx

Q: I need to increase my material sector weighting. So what Canadian & US growth and value oriented material sector stocks would i5Reseach recommend. Thanks … Cal

Q: Hello 5i Research
The US index has out performed the TSX index the last decade.
Do you think that the next decade
the Canadian market will out perform the US market ? What are your thoughts/ guess?
Thanks

Q: Hi, Iam having a hard time getting my head around how Bonds work. They are talking about a bear market for bonds these days, but when the price of bonds decrease then yield increases, so wouldn't the increase in yield offset the decrease of the bond price, Thanks?

Q: I've just read your email regarding the upcoming changes to your website and fees. What's the difference between "5i membership" and "basic bundle"?

Q: What are you thoughts on using broad based ETFs as "cash" in a portfolio? It seems like that's how the ARKK funds operate, except they are using stocks (I think GOOG and AMZN). To give you some context, my portfolio is mainly VGRO/VEQT, with some 5i stock suggestions for growth mixed in. I dollar cost average into the ETFs every two weeks but I'm wondering how I should approach adding to some of my stock positions and/or start a new position. Thanks as always.
Marc

Q: I have to laugh about inflation/CPI gaining ground versus same time last year? Really? With lock downs and pent up demand who would expect anything else. I read a great article from the head of the Fisher group in the USA. To summarize: this is transitory for the two reasons I mention and others. Be interested in 5i comments. Oh, the huge debt precludes any significant move up for interest rates. Would be happy to send it to you - very bright guy.

Q: Why does rising interest rates (or the expectation interest rates will rise) have such a negative impact on tech stocks?

Q: Answer to Gary (June 8) about budget records. We use Quicken Home and Business. It keeps track of investments (records security percentages and updates easily) and day to day banking. It is a lot of work to initially input information if a large number of securities and accounts so we will likely stick with it. No longer use Mint as we had to go to card websites to check balances and activity anyway.

Q: I have Canadian cash to purchase an S&P 500 index etf in a non registered account with no immediate need to withdraw any funds. Please explain the differences and advantages/disadvantages of using an etf that is hedged or non hedged C$ versus converting to US$ to buy the index? What are your favourites of each? Which approach do you recommend using now?

Q: Team, what resource names would you be buying right now?

Q: I research info south of the border and have found some small momentum stocks: HITI-CA (High Tide), MILE-Q (Metromile - insurance business), CERC-Q (Cerecor - medical) which the CEO and Senior Officers are from Celgenc and these stocks are fast moving to the upside. Your opinion? I checked and none of them can be found in your search engine. Thanks again.

Q: Team, would you suggest buying resource names over energy names right now?

Q: Peter Foster penned an article in the National post on Saturday about Mark Carney and the impending green movement and great reset. Based on Mr. Carney’s seeming ties to the libs and global heft, do you see the is as a threat to markets in Canada and globally?

Q: Hi folks.

With all this talk about higher inflation (new shiny object for the media) there has been very little discussion on the explosion of debt Countries have embarked on, pre, and since the onset of Covid. Seems like this appears to be a coordinated effort throughout the developed world, and as a result, no one seems too bothered, Including Conservatives.
Are there any lessons in history we can draw from? How does 5i think this all gets resolved over the next decade or two, assuming it will take a bit of time to generate enough growth to cover all this?
Are we headed for multiple Japans where the Gov't owns all or most Gov't issued bonds to control interest payments. Does this scenario create even more inflation with depreciation of currencies and a race to the bottom on exchange rates? Way above my pay grade so please take a stab at opining on this for us.

Many thanks.

Q: 5i team.

To compliment your offerings, would you consider creating three ETF versions to mimic your Income, Growth and Balanced portfolios. Any chance this is on your radar, or possibly partner with and ETF provider to achieve this?

Heres hoping!!