Investment Q&A

Q: I am curious if you are aware of any large cap investment (> $7B) that is -68% in 2 years and -40% in one year? I don’t think this can be entirely blamed on the market. In any other business there would be a massive purge starting at the very top. What are your thoughts? Has this thing bottomed?

Q: Hi Guys,

The above companies are well below water, I have a 3 year window before needing to sell anything, please advised!
Should I sell, I would be purchasing companies like td, kxs, doo.
Thanks
Jim

Q: I hold the above stocks in my Unregistered,TFSA,and RRIF accounts. I understand that as of January 1, 2023, the IRS will require a 10% withholding tax when Canadian residents sell US stocks. Does this rule apply to sell any of the above mentioned my stocks ?

2) If I sell above Stocks before end of 2022, will I avoid paying new IRS 2023 10% withholding tax?

Q: Hi! Doing some cleaning up and wondering if these are buy, sell, or hold. In reference to Shane's comments I also agree that it wasn't too long ago that so many advisors were recommending growth stocks at lofty prices. Having always been a more of a value investor I dipped my toes, but am feeling like I'd be too scared to ever enter any kind of a growth stock again. I know if interest rates peak you feel these can do well again but only time will tell and many investors have lost lots of money on the high growth names like in Cathy Wood's funds. Happy to hold any of these names if there could ever be a turn around. Thank you!

Q: I know that this is an unfair question - sorry. I realize that ARKK and AMD are two different investments, but if 5i had a chunk of money to invest in one of these two, which would it be? On a similar note, is Intel a better investment than AMD?

Q: Good morning, I have some USD in my tfsa and was wondering if you could suggest a few ETFs in the states where I won’t get charged a withholding tax. Can be growth or index oriented.
Thanks

Q: Dear Peter et al,

Your answers seem to indicate that the bottom is near but will take sometime to get up to speed. You seem to suggest that a 3 to 5 year time horizon is a reasonable time frame to expect a recovery. (I am paraphrasing here!)

With this in mind which group of stocks would you choose. ARKK or FAANG group. I see that ARKK doesn't have the big names in FAANG except TSLA which some people don't include in FAANG!

An impressive bounce in ARKK , almost 10% makes me ask this question.

Q: Hi there, ARKK has dropped very dramatically - about 75% to 80% from all time highs. I believe the 2000 .com bust had a similar fall in terms of percentages. In your opinion, has ARKK bottomed out here? Do you think it's time to finally start buying in the $40 to $45 price range? Lastly, do you see comparisons in buying ARKK today, similar to buying oil in March 2020 after oil went negative and XEG etc collapsed? Thanks!

Q: I am looking at 2 and 5 years charts for both funds and VGT was outperforming XQQ all the time in the last 2/5 years and didn't get cut as much. if you were to pick one now would you still go with VGT?
What is your view on ARKK now?

Q: I have now smallish positions in these ETFs held in registered accounts. ARKG at a 40% profit ARKW at a 60% loss and ARKK at a 64% loss. Do you see these recovering in the next few months or would you sell now and look elsewhere?
Please deduct credits as required.
Many thanks.

Q: I expected a blood bath this am with CPI at 7.5% and 10 year hitting 2%. The reaction is surprisingly mild. Even ARKK is up! Your thoughts please.
In spite of your 'do nothing headline' I checked out in January. Thinking of averaging back in or waiting for the Fed in March. What would you suggest?
Thanks Peter.

Q: Hi 5i'ers - ARK is down do you think it will rebound and that Cathy Wood will readjust these to move forward in the next few years. THX!

Q: Hi team,

In my question of January 27th on ARK ETFs, you had a nice development on half the question, that is the newest ARK ETFs, but nothing on the second part of the question.
Do you think you could elaborate ?

Gratefully,

Jacques IDS

Q: Dear 5i team.

Looking at Q history, you last pulled ARKK and ARKF from the ARK group of funds as your suggested two of the bunch as at Oct'21.

Does this still stand or has current market backdrop changed your view in any way?
I'd like to get small positions in the best two now that the rotation is well under way.

Thanks.

Q: With regard to your comments on capitulation. Would you regard ARKK's recent price action and volume as an example?
Thanks. Peter

Q: Would some of the companies that ARKK invests in have the "Zombie Company" label?

In a major market collapse where there is an avalanche of investor redemptions in this ETF, is there any danger(s) to be aware of? i.e. would it actually be less risky investing in perhaps (5) of the top holdings as opposed to the ETF itself in this extreme situation?

I like the idea of a Disrupter investment component within my very diversified portfolio. However, to come up with my own personal yet-to-be-determined weighting, I am trying to get a feel for the risks with this ETF if things were to really, really go south.

Q: With the market rotation and possible interest rates impacting growth stock valuations.

Is ARKK becoming hit too hard to ignore?

What would be your top ETF plays for today and the next 2-3 years? I've been riding semi's.

This is an added boost for my portfolio which is otherwise balanced.


Thank you very much!!!

Q: Hi 5i and Happy New Year!

I hold the above noted stocks/ETF in a TFSA.
The only 2 that are above water are Nanoxplore (GRA:CA) and PayPal (PYPL:US).
Question 1). Which would you recommend keeping?
Question 2). Which would you recommend selling?
Question 3). With ESG values in mind, what would be your top 3 CAD stocks and top 3 US stocks for this year's $6000 TFSA contribution?

Thanks for all that you do!

Q: Hi guys,

Here are my u.s. holdings and percentage; cost 5.5%, nvda 5%, msft 4.5%, J 3.5%, amzn 3%, crwd 2.75%, abbv 2%, U 1.5%, upst 1.5%, veev 1.5% plus 2 etf's, arkk 3%, spy 3.5%
(Also i2i fund 1.5%)
Are there any red flags here or changes that you would recommend for a growth/balance portfolio? The rest of my portfolio is a cross between your (5i's) balance and growth funds.
Happy new year and stay safe,
Jim

Q: Great response to Dennis’ Dec 18 question about today’s Tech sector valuations vs. the 2000 Tech bust – one of your finest. I remember it well. I wanted to transfer my 15K Technology mutual fund to something else, but my advisor didn’t think it was a good idea. It eventually shrunk to 2K. Obviously I do my own investing these days.

My question is actually on ARKK. I do like the disruptor make-up of this portfolio. So, besides your above response, I also think that for this reason ARKK is a more solid investment compared to many dot-com stocks 20+ years ago.

However, on the other hand I respect your response to another question that was specific to this ETF. You point out that “The average price/sales ratio of its holdings is 10X, so it needs to be considered very risky.”

Is there any past history on the average P/S that Tech stocks have typically traded at? Or at what approx. ratio would 5i Research feel “more comfortable” in taking a position?