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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i

I would like to take a position in AC, but I'm worried about Canada’s vaccine rollout. I don't see a resumption to normalized traffic this year. My guess is they might hit 50% capacity late this year, and that might be aggressive. Can tell me how long AC can last with current monthly cash flow burn before they have to raise more money? Also can you provide your best estimates to traffic for 2021 and 2022.

Thx
Read Answer Asked by Christopher on March 27, 2021
Q: In your response to Chris on PE, could you add forward ratios under the "Valuation Ratios" and "Price To Comparisons" categories, where it makes sense of course?

If we used NVDA as an example, the PE ratio shows 76 while it looks like Fwd FY1 is 48 and FY2 is 43, roughly.

It would also be nice to see any sector/industry ratios or any other comparison numbers.

Thx
Read Answer Asked by Christopher on March 27, 2021
Q: DUFRY is a US duty free company, With people getting excited to travel is DUFRY a good bet. It did trade above $ 16.00 in past 5 years, RAK
Read Answer Asked by bob on March 27, 2021
Q: Hello,
Do you think the trend of SPY outperforming Nasdaq will continue for the next 6 months or so? Also I am seeing IWM outperforming IWO..I am considering moving portions of my tech holdings to IWM and SPY for the next little while..What are your thoughts? Thanks.

Regards,

Shyam
Read Answer Asked by Shyam on March 27, 2021
Q: In hindsight (which, as we know, is 20/20), I was overweight in tech and underweight in both materials (0%) and consumer cyclicals (4%). Given rising fears of inflation, I am of two minds.

A. Hold the course. Although four of my tech stocks are well below water - ARKK, KXS, U,and XBC - they are fundamentally in good shape and will rebound in time. And I've missed most of the upswing in materials and CC anyway.

B. Inflation is inevitable. I should sell off one or more of my tech losers (so I am no longer overweight in that sector), take the proceeds and invest in either materials or consumer cyclical to enable my portfolio to better cope with inflation.

If Scenario B is, in your view, the best to pursue:
1. Which tech(s) - and in what order - would you be inclined to sell?
2. If only one could be added to, would it be materials or CC?
3. What are your two favourite US consumer cyclicals today?
4. What are your two favourite US or Canadian materials today?

Many thanks for your guidance.

Maureen

Read Answer Asked by Maureen on March 26, 2021
Q: I am wondering if from a diversification standpoint, do you look at each investment account separately, or on a combined basis. For instance, is a full position 2.5% in each of 2 accounts, or 5% in one account? Do you hold different securities in both accounts if its a good investment, or do you keep your holdings between both accounts at say that of a full position. Would you not advise to have more than 5%, full position, between both accounts or would you be ok with 5% in each but this would then represent 10% of your total portfolio?
Read Answer Asked by Steven on March 26, 2021
Q: I am beginning to shift out of specific technology stocks and into technology ETFs simply out of personal preference from a diversification and risk allocation perspective. I presently own EARK and read with great interest the Morningstar article you posted last week (No Room for ARK) which presented some other perspectives on the ARK funds in general (going forward) including some of the challenges very successful actively managed technology funds eventually face when they become so large. Which brings me to a few questions. 1. Do some of the go forward challenges the US ARK funds may encounter also apply to the much smaller Canadian versions offered through Emerge, such as EARK? 2. Can you comment generally on technology ETF alternatives such as ZQQ or TEC? I am interested in particular about understanding the comparison of a more actively managed technology focused ETF vs. a more passive index tracking ETF or one (like TEC) that seems to be a hybrid in that it tracks an index but periodically rebalances. This can all be a bit confusing so any general explanations of pros/cons would help immensely. Thanks.
Read Answer Asked by Brad on March 26, 2021
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