Investment Q&A

Q: Hello Peter et al:
Just a note of thanks. Some time ago I suggested that a portfolio assessment section would be helpful in a Q&A format here. You said it was a good idea but may be suitable for Canadian Money Saver, (CMS). I see now in CMS Portfolio Confidential has become a regular feature! This month's case history has so many similarities to our situation and is very helpful
Thank Ms. Barbara Stewart on my behalf and a big thank you to you as well!

Q: 10/15 div stocks that would be best in a market melt down (maintain div)
10/15 div sticks that would be best in inflation run up (no/low debt)
No consideration for sector or concentration needed.
US and Canadian stocks ok prefer Candian if there is a tie
Use credits as needed

Q: Good day! I am slightly off topic but have a comment & question. I think the your chart attack is a nice addition. Thank You.
My question is with the February Chart attack. Looking at the chart for "House price to income", I noticed that Canada, as you mentioned alongside New Zealand, is the most expensive place to live per dollar of income earned. What surprises me is that I was expecting this to be the result of the crazy real estate price increases during the last year but looking at the chart, the amount of income earned to buy a house has been pretty stable in Canada for the last 4-5 years. The year 2020 (which some of us call a bubble) has not changed this important metric. Our new inflated house prices are equally expensive today as they were 4-5 years ago. If yes, there has been no real increase in real estate prices as a % of household income which is definitely not what I expected. Am I reading this correctly? Any comments? As a secondary question on same topic, I thought the US real estate market also shot up but does not appear to be reflective here (or not as much of an issue)?? Is there really a bubble going on?
Thanks.

Q: Think I had asked this before but can't find the answer. To cover a Margin Call do I sell Winners or Losers?
Thanks. Austin

Q: Is there any light reading you can suggest on the topic of Investment psychology? Thanks.

Q: Morning 5i,

Some time ago you recommended a podcast called Invest 'Like the Best', which has been great, thanks for that. One of Patrick's recent guests is Jeremy Grantham who outlines a case for the current market being in late stage bubble territory. Do you have the same feeling? Any advice as to some defensive plays prudent investors should take other than taking some profit off the table or going to a slightly higher percentage cash to be prepared to take advantage of a downturn? Are you recommending any examples of securities which have done well in such situations?

Thanks,

Dan

Q: Hi Peter/Ryan, do you have some book recommendations for Growth/GARP investing? Thanks in advance.

Q: Hi there,

Do you think we are closed to the beginning of a sell off/correct, or the end? Also, do you see this as a good opportunity to start a position in ARKK (~$135)?

Thanks!

Q: With the NASDAQ at a 3 week low and technology stocks seemingly being used as a source of cash to fun other sectors, do you think it is a good idea to start researching big technology in the U.S. Names like MSFT, NVDIA and GOOGL? While they may not be in favour for a quarter or two, it seems like they will still have strong earnings momentum for years to come. Your thoughts?

Thank you,
Jason

Q: Hi Everyone at 5i!! Peter, I would like to thank you for your article in the National Post this weekend! It gave me quite a bit to think about. I am stepping into retirement next month with a very comfortable nest egg. 60/40 stocks and GICs. Stocks are diversified dividend players and growth. It seems though, that any direction you turn, if the stock market develops one kind of an issue or other, we are getting hit. If inflation goes up( which anyone who does the grocery shopping will tell you, it is happening at a goodly pace), and interest payments do not, there goes the purchasing power of your money. Gold could be a portfolio holding...but how much of the stuff is effective to protect the portfolio ? Dividend players may not offer much protection....well there goes that idea. GICs pay piddly amounts. Bitcoin? How could something that technically is based on nothing have so much value??? Real Estate? Stupidly expensive...So, I have a come to two conclusions: 1) start a small hobby farm in my backyard and grow my own vegetables, should things really go egg shaped. 2) Ask for a 5i article, which outlines specific portfolio protection advice considering the times we are living in. Right now, like you, I am trying to stay optimistic,, though sometimes it is hard, and I am staying the course. Thank you for all you do! Cheers, Tamara

Q: Dear 5i,

I don't have any margin accounts and definitely do not plan on getting any but, I do have many questions regarding them.
1. what accounts can use margin?
2. how does one generally qualify for margin?
3. can the broker essentially make a margin call at any time?

thanks

Q: whats behind the demand for the CAD, causing its constant rise. Is the reason the lack of demand for the USD? but why,can you explain a bit more.
Art

Q: What cycle in the economy are we in?

Q: Can I transfer stock from my CASH a/c to a TFSA a/c WITHOUT having to SELL it first in the Cash a/c and then BUY it back in the TFSA a/c? Obviously, I don't want to incur Cap Gains on a stock this is up 200%.
Many Thanks!

Q: Is there an ETF focused on environmental theme companies in Canada?

Q: Hi,
This is more a big picture question.
For several decades the concept of "Inter-market Analysis" had high "currency" value. Simplistically summarized thus: Stocks go up and bonds go down. Inflation goes up so does Gold. US goes down and Emerging markets go up etc.,
That idea seems to be dead now. It appears that having a long and short position even within sectors seems to be popular. Or the correlation exists still but with different asset classes. For eg., inflation and Bitcoin are now linearly correlated!
Or Bitcoin and Gold are negatively correlated! (Bitcoin hit another record today>50 k and Gold went down below 1800$!!)
Should one really forget about fundamentals and enroll in classes for Options trading strategy?

Q: Hello 5i Team
I have questions about the market run up in general as of late ?
I own all 5i research stock in the portfolio and plus others that 5i has recommended . I am getting mix signals about the market for this year. I have done very well with your recommendations , looking for directions on the market outlook for 2021? Please deduct credits as appropriate.
Regards
Claudio

Q: Hi, how often should we look to high grade our portfolios? For example, in many questions you rank stocks and today in a previous question you ranked these stocks in the tech sector - CRWD, NVDA, TTD, SHOP, LSPD, TEAM, KXS, PLTR, TOI, MITK, DOCU, AVLR.
If I currently already own SHOP, LSPD, KXS and DOCU, should I look to high grade from DOCU/KXS into CRWD/NVDA/TTD since these should show higher growth? Can you shed some more light around your process and how we can best manage quality in our personal portfolios. Thanks!

Q: Bonds are one place that I do not understand well. Can you point me in a direction where I can learn more about bonds, especially related to predictions of interest rate rises over the next few years.

Q: Hi Guys
How do you think Mawer International fund will perform going out 5 or 10 years, or would you choose Emerging Markets instead, Would China be a risk ?
Geographic Allocation
45.9% Europe Ex. U.K.
20.0% United Kingdom
14.2% Asia Pacific Ex. Japan
10.7% Japan
5.3% United States
3.9% Cash & Cash Equivalents
0.0% Middle East/Africa
0.0% Latin America
0.0% Canada