Investment Q&A

Q: In many cases buying the top 3-5 stocks of an index gives a better end result than the whole index since you don't have to drag the less performing.
1-Do see the same apply to the S&P500?
2-In a 3% (normal?) fed rate what is the normal multiple for the S&P500?
3-What is the current forward PE for the S&P500?
4-How does this apply when the top 5 holdings are technology with higher multiples than the banks and oil companies?
Many questions but one goal, trying to put the dry powder in an optimal manner.

Thank you

Yves

Q: Can you provide 8 growth/total return names to initiate a position an add to overtime in the TFSA for a long term investor.

Feel free to rank using your assessment/analysis of a balance of performance/recovery, prospects, total return, etc. Sector diversification is not necessary. Mid to large caps (small caps only with high conviction).

$CAD/USD names (please include your favourite growth CDRs as well).

Q: Good Day Team
In a Registered Growth for 5+years. On each one which You will add, hold or sell ?
GOOG 54%
AMZN 20%
META 6%
RTX 19%
Thanks
Regards

Q: Q1: What 3 to 5 stocks if added would work well with the existing 17 stocks below?

Q2: Are there any already in this list that you would say (like Jack Armstrong) "Get that garbage out of here" or are they all okay?

AAPL, ABCL, AMD, APPS, ATZ, COST, CRWD, DDOG, DOO, ECN, GOOG, GSY, NVDA, SHOP, TD, TOI, WELL

Q: Have these 2 in CDR, do you see them as good long term holds with good growth.

Q: It's time to add to my TFSA. I own ADBE, GOOG, AAPL, NVDA, PYPL, QCOM, CRM and TOL in this account, where longterm growth is the investment objective. Should any of these be switched? Please recommend replacements if so and ignore sector/market cap considerations. I wish to add to either NVDA or PYPL, which of these should I add to? Deduct as many credits as required. Thanks, and wishing you all the best for 2023.

Q: I noticed that your position on Google has changed in the past couple of months. Previously, you were always recommending it as #1 stock for growth/risk combination, lately I don't see this recommendation anymore. At the moment, it is the worst performing stock in my portfolio and I am down over USD $20K on it. Unfortunately, it's in TFSA portfolio, so I cannot sell and claim cap loss. Do you still believe in bright future for Google considering the challenges (e.g. Microsoft combining efforts with Open AI to integrate chatGPT in Bing and challenge Google search dominance and, by proxy, ad revenue)? Considering that the stock is held in TFSA, would you keep it or sell and replace with something else? If you recommend selling, please list your suggestions. What is your current recommendation on the US market for better growth/risk equilibrium? Thanks!

Q: Hi and Happy New Year!
question 1: We've managed to get through 2022 with about 25% cash on hand and are starting to deploy it now. Mostly choosing dividend paying stocks that are in the favoured industries (defense and industrial) at the moment, but also looking at some long term holdings that are below water in registered accounts, such as GOOG. I know you're not fans of adding just because a stock is down, but would GOOG be an exception, given it's moat, cash flow, etc? I am guessing it needs to confirm a double bottom, possibly get back above 95.00 in order to look like it might be turning. Would that be a plan, or is it time to just buy it now? Growth investor, able to withstand higher risk. Own AAPL, MSFT, and sadly still holding CRWD.

Question 2: is the recent downgrade on MSFT reflected accurately in the price, or has that been overdone, do you think? The downgrade by UBS indicated a shift to neutral with a target to 250 or so, I think.

Thanks for the infinite patience you exhibited over the past, very difficult year!

Dawn

Q: I've been looking at investing in one of the FAANG's + Microsoft. Some I don't find attractive despite their fairly attractive valuations:

Amazon - poor outlook

Apple - China production

Google -perhaps lower ad revenue near term, and it's such a large part of their business model.

Meta - uncertain future after change in business model.

I guess the above are cheaper for a reason. Would you see reason for optimism on any of the above?

I like MSFT and NVDA but can't get past current valuations. NVDA in particular looks attractive. AI seems to be a major disruptor going forward and it appears to me that NVDA has a moat in some parts of the AI world. Would you feel that it has the most avenues for growth too compared to the others ? How quickly can it grow into its current P/E, P/C and P/B valuations? They seemed so much more reasonable 10 years ago.

Q: Hello 5i Team
I have a very small total combined position in the above 4 stocks , I have no concerns at this time.
Would there be better risk reward in so other stocks in 2023 ? Let me know your thoughts?
Thanks

Q: As I recall in early 2022, prior to the stock split, 5i research said GOOG was the best bet in the big tech space, with lots of cash and good financials. For longer term potential, where to you see GOOG now compared to MSFT, APPL, AMZN etc?
Thanks

Q: A recent Financial Post article stated larger-cap, profitable and good cash flow stocks will be the place to invest in 2023. Would you please suggest 5 Canadian & 5 U.S companies that meet those conditions. Thanks … Cal

Q: How would you invest ‘23’s $6500 TSFA allowance? Is there 3 or 4 North American stocks you would buy tomorrow? DCA over the next month into one name? Not concerned about sector or risk - 10 year investment horizon.

Thinking SHOP, BN, NVDA and GOOG. All of which I own today and are down from when I purchased.

Appreciate your thoughts.

Don

Q: Thanks to the 5i team for all the great work amongst a very tough 2022! I wish you and yours all the very best for the new year.

I really appreciated and learnt a lot from the various indices/metrics that you used in your market update emails, especially circling back in the most recent one to update the trends. Looking at the various indexes you explored last year, it made me wonder if there was an index or metric that tracked digital advertising to look at trends through time (e.g., have things bottomed and more are spending on digital advertising). As a holder of companies like Google, Digital Turbine, and The Trading Desk, I am interested to know if there is an index/metric out there to follow trends in digital advertising. If there is, could you use it to suggest what the general status of digital advertising is and how it might help inform adding to positions of GOOG, APPS, TTD, and others (if you have higher conviction names to suggest).

Thanks so much for all you do and wishing everyone a strong investment year in 2023.

Q: when momentum was in vogue price to sales was a favourite measuring stick for valuing tech companies. so it would seem to make sense to apply this metric in the current environment. accordingly what are the historical metrics for MSFT GOOG. AMZN and what are the latest price to sales metrics for these 3 companies. thanks Richard

Q: what is the best stock for a.i. investing in?

Q: Would you recommend investments that invest in shares if individual art? Any in particular?

Q: Hi team,

Looking for strong growth names in my tfsa, I have been considering cheap stocks with potential. An alternative approach would be to look at names which have been doing very well this year and which still have momentum and potential. Grateful for your comments and some names which have wind in their sails.

Jacques IDS

Q: do these companies offer a decent upside in a moderate economy were inflation is dropping along interest rates. is the selling down based on perception or reality on earnings ,.short selling in control or is their a couple of stocks were their is a lot of insider buying and reducing share count and debt thanks

Q: Tough question for sure, but disregarding other personal factors (eg, diversification etc), if you could buy 3 Cdn stocks and 3 US stocks given YOUR assessment of the investment/economic landscape, what would they be? Let's say the only parameter is performance over the next 12 months.