Investment Q&A

Q: We are down about 15% from the peak of the S&P 500. I have about 5% of my portfolio in USD cash to deploy. Would you advise going a fifth of my cash for every 3% further fall in the S&P 500? I have enough Google and Meta, but was looking at JPM and Apple. Any other US names you can suggest?

Q: In my TFSA I have held WELL for 4 years and now considering selling along with DRX. Would selling these 2 and replacing with ISRG make sense for better growth.

Q: Retired investor with RIF and pension income looking to deploy capital to generate growth (moderate risk) and income. Please provide 5 companies each in the US and Canada to investigate further for investment soon. Canadian banks and utilities owned, so please exclude those.

Q: Hello I am new to 5i (one week!) and am really enjoying the Q&A as a learning opportunity. I use one of the banks to invest our personal retirement funds (ie we don't have company pensions) and am keen to learn to self invest.

As a 60 yr old I have recently started an incorporated and am wanting to invest my incorp dividends appropriately. I have invested about 20% of my available funding and have a high cash position at present.

The information I have gleaned online is that a an incorporation should invest accordingly:

Corporation:

1. Corporate Class Mutual Funds/ETFs
2. Broad market ETFs (stock and bond ETFs) *capital gains only taxed when sold, reducing annual tax drag. Be mindful of whether dividends or capital gains.
3. Canadian dividend stocks (eligible for dividend refund mechanism)
4. Growth stocks (Capital gains taxed at 50% when you sell) but no Dividend reduction management benefits compared to Canadian dividend stocks.)
5. Investment Real Estate (Rental income is considered passive and taxed at 50%. Can reduce small business tax rate eligibility if passive income exceeds $50K)

The online information also indicates that incorporations should not invest in:

1, High Interest Savings accounts and GICs
2. Foreign Dividend Stocks and REITS
3. Actively managed mutual funds

As well - I have completed your portfolio questionnaire which tells me that I am an Alpha Balanced Investor. This happens to align with the personal portfolio that I hold for our retirement which is invested 70% in equities.

Based on the guidance you have been providing in the past week, I feel it is time to start $ cost averaging for my incorporation funding. I believe that my husband and I can live off of our personal portfolio and do not need to pull $ out of the incorporated for 3-10 years.

Given that my current interest is to starting investing my incorporated revenues, can you please recommend the selections?

I understand that you cannot provide personal recommendations. However, I suspect there may be additional members who have set up their own businesses recently and can benefit from a tutorial and investment recommendations. Thank you !

Q: On these 7 themes please pick your favourite one or two stocks for each theme based on your view of the best potential performance over a 3 year hold with "appropriate" thought given to concern for downside potential based on corporate debt, management, current valuation or any other concerns that would prevent you from choosing a given equity. For most themes suggested equities are provided however please feel free to ignore those if not your favourite one or two. 1. AI COMPUTE (META ASML) 2. AI SOFTWARE (AVGO IBM) 3. POWER AND UTILITIES (NEXTERRA DUKE AEP) 4. BUILDING PRODUCTS (INHD AEHL WSO CRH) 5. LIFE SCIENCES 6. HEALTHCARE SERVICES (MERCK TMO AMGN SYK) 7. ELECTRIFICATION AND INDUSTRIAL (GEV EOSE GWH MVST). BIG ASK I know but likely of broad member interest and I seldom ask questions. Thank you.

Q: Hello,
Looking for what is currently on sale / best current valuations. 2 stocks from each of:

1) Income Portfolio
2) Balanced Portfolio
3) Growth Portfolio
4) US

Of these picks, please rank from lowest to highest risk.

Thank you!

Q: What's going on with Natural gas sector i own TOU ARX,TRP CNQ would you add hold or sell and in what order also own small positions in Gold (GDXJ and Silver same question ) lastly own COST WMT ....LLY ISRG also same question buy more sell or hold CW entry prices thanks for all your help


same question

Q: Can you suggest a few names with strong fundamentals and growth prospects in the long long which could be good picks in this bloodbath

Q: Of the following stocks TRI,GSY,BN, DIR.UN ISRG,PRL which ones would be a buy if you had to choose two?

Q: Which 5 Canadian growth stocks would you start to accumulate today? Cash account.
Which 5 USA growth stocks would you start to accumulate today? Cash account.
Five year hold.
Thanks

Q: I've done quite nicely on NVO over the last while and have sold off about a third of my original position at prices close to double the current level. With a few US dollars in my account I am wondering if I should buy back some NVO or look at a part position in ISRG (or another healthcare suggestion from 5i) for diversification.

Thanks for all your advice! Though I ask few questions, I learn "bigly" from those of other subscribers.

Q: Only within the last two months we were at record highs, now we’re in a bear marker for the Nasdaq and S&P nearing one. Futures are selling off again here Sunday night. US administration is digging the heels in on these tariffs.

What are your thoughts on the Trump and Fed put? If they don’t change course soon, the economy is going into a recession and midterms next year will be ugly for the GOP. Looking back at all previous crises, what do you think will happen in the next 6-12 months and what’s the game plan? VIX at these levels and large consecutive down days have resulted in nice future returns 1,3,5 years out. Let’s say you had 100k to invest now, how would you deploy over the upcoming weekly or monthly interval? Which 5 CDN and 5 US stocks would you continue to buy on any weakness, assuming only market related? Thank you!

Q: Given the volatility of markets, I would like to purchase some small quantities of equities shares as I have some cash to invest. Which equities would you recommend, top 5 in Nasdaq, S&P 500, and TSX.

Best,
Neeraj

Q: In today’s and current turmoil what would be your favourite 5 Canadian and US Stocks to buy? Would you be averaging in over the next 6 to 12 months?

Thanks
Tim

Q: Stocks are being pummelled. But as always, hopefully they will come back but it may take a while longer than normal. Trump is not normal. If one understands the risk, would you suggest buying some names that are being particularly hit today (eg SHOP -15%)? If so, can you suggest a few names?

Q: Twice in the last two weeks you've been asked to provide your list of top 10 stocks with the highest conviction over the next 5-10 years. The lists have been the same, with one exception. The earlier list had ISRG on it; the most recent list replaced ISRG with IFC. Are you losing faith in ISRG?

Q: Good evening,

I am wondering if you have any possible suggestions regarding companies that focus predominately in the application layer or operate full-stack models of AI.

The reason why I am asking this is because of an article entitled: "AI's revolution is just beginning" in Sunday's Globe and Mail. Sadly, there are a few parts that I don't fully comprehend which unfortunately prevents me from investigating more fully. A starting point would be great!

Take a peek to the article as it draws parallels to the dot com/internet crash of the 2000s.

Any ideas would be greatly appreciated so I may begin to investigate.

Conversely, state any points you think should be taken with a grain of salt!

Thanks!
Arturo

Q: I need to do some portfolio rebalancing. I want to increase weghtings in Basic Materials, Consumer Defensive and Health care. Could you please give me your top 3 picks in each category for a 3 - 5 year hold. Canadian or US stocks are fine.

Take as many credits as you think appropriate.

Q: I am working on increasing my sector representation in Healthcare. I will shortly have filled a full position in ISRG, adding in this downturn. I have traded around UNH, and am planning to take it from a 1/2 to full position. I have 1/4 position in ILMN and do not think I should be topping it up; I perceive it to be risky. I need 2 more companies, or may need to take one or both of IRSG/UNH to more than a full position.

This provides me a surgical/instrumentation company and a service/product supplier. For diversity in the Healthcare space can you rank your preferred buys (with entry points) I'd appreciate 2 recommendations on the pharmaseuticals side and 2 on the biotech side, or as you may see that fits better.

While I am open US companies I do have a concern that the Trump administration will bring the DOGE and Executive Order train wrecks to health care. I would appreciate your views on this potential action and howe it may impact investment choice in the field.

Thanks as always,

Dave

Q: Do you have any suggestions re the Pharma companies which would be a good time to purchase now, either in a partial or full position? Thanks