Investment Q&A

Q: Brookfield Corp is in a downtrend and is down 5% today. Is it a Buy, Sell or a Hold

Q: My question is: How does one decide it is time to re-evaluate and take steps to reduce market exposure? This is unique to each investor I believe.

The Substack link provided in response to Sandra’s recent post mentions the importance of institutions in the proper functioning of modern capital markets.
It states:

“ What matters is the health of the institutions that underpin economic predictability.

The institutional failures with the clearest financial relevance are well documented:

1)Erosion of judicial independence and contract enforcement
2)Politicization of regulatory agencies and central banks
3)Suppression or distortion of economically relevant information
4)Concentration of discretionary power in the executive without meaningful legislative or judicial constraint
5)Arbitrary property reallocation or expropriation and
6)Absence of durable mechanisms for accountability or peaceful policy reversal. “

In my opinion, every one of the listed“institutional failures” has happened to some degree.

As such I’m reconsidering my exposure to the equity and bond markets at this time.
Yes, corporate profits look good.
Yes, interest rates have fallen.

But the reality is markets need robust and stable institutions and these are currently facing great risks. Not to be dramatic, but these are the fundamental underpinnings of modern capital markets that are shifting. I’ve never experienced a massive drawdown.

I realise time in the market is what matters, but I’d rather miss some returns than weather the shock of a 10 or 20 point drop (or more). I think I have answered my own question: Things have changed for me (my view of the current stability of the institutional landscape) while my equity exposure has steadily increased. Yes, emotions and investment decisions can be terrible together.
But 2nd question —what’s the difference between an emotion and a comfort level?

I’m sure I’m not alone in feeling this.

Q: If you had to sell DSG or KXS to raise cash, would you trim from both or just sell one?

Q: Yesterday, Marshall asked for a high risk/high reward recommendation in the nuclear energy sector. You recommended SMR. Was this recommendation made with the knowledge that this company is now ‘under investigation’ or did that news break after your response? Would your answer change in any way?

Q: Please analyze the investability of these companies and order them as to which provides the best risk reward over a three-to-five-year horizon.
Thanks

Q: Thoughts on this company

Q: Hi 5i, I have a family member who has retired and is interested in buying a growth portfolio of ETFs that is US currency based. They have bought an annuity that will support their lifestyle for 10yrs. If you were building this portfolio what ETFs would you chose and what percentages would you allocate to them?

Q: Hi Peter
today is a pull back for the market
but both ATD and Dollarama has pulled back for over 1 week
knowing that DOL is a growth stock
I have a half position in each of Dol and ATD, which one would you
prefer for growth, abit of income? thanks
if there are any particular reasons for the pull back of both, let me know
thanks
Michael

Q: Are these two companies mostly identical in business model?? Are there differences and if so, can you identify those differences - thanks

Q: Despite it's name, Canadian Solar, is listed only on NASDAQ. Please advise whether there are similar companies listed in Canada, producing industrial-scale solar/wind energy battery storage products. Pls. also indicate their prognosis for investment.

Grazzia

Q: Don't see any news. Why is SHOP getting hammered 10% today? I know it's a volatile stock but could someone know something? Analysts are generally positive about it. Thoughts? If no reason for downdraft, could this be a buying opportunity?

Q: Bam is down seriously today. Is it related to today's announced acquisition?

Q: What are your thoughts on IFA I noticed this today when I was scanning the 52 week highs. It looks like it is seeing an increase in revenue lately and was profitable last quarter. Perhaps it is finally starting grow. It does hit one positive for me little or no questions from 5i members.

Q: Could you provide some insight on what TRI & DSG are saying about their future prospects and is their moat real and believeable? In the case of CNR, whenever the political tiddlywinks ends, they will eventually be filling freight cars. TRI & DSG seem to be more exposed to sentiment, which is a bit like guessing which way the cat will jump. Thank you

Q: Please help me make up my mind on what to do with Descartes, down 40% in one year down 16% YTD. Looks like it and CSU are on a race to the bottom. Your thoughts on DSG would be greatly appreciated.

Q: Follow your balanced and income portfolio I am wondering what order would you add today Included RY and DOL also because of their growth over the last year. Please include rationale of the top 4. Thanks as always.

Q: Hi Peter and 5i Team,

I manage my son’s TFSA. One of his holdings is Kinaxis KXS, which has been held for a long time. The average cost per share is $49.56, and the last time I looked, KXS is trading at $136.59.

Noticing that, based on answers to other members, 5i is becoming more frustrated with this company, so I’m wondering if any action should be taken.

Please advise if there are any other TSX-listed companies or ETFs (other than the CSU family) that have better prospects than KXS going forward, or would be wiser to “stay the course”?

Thanks for your insight.

Q: "Trade Rationale - We continue to like KXS over a long-term holding, but amid the sell-off in software names, KXS has been hit, and while we think it can eventually recover, it may take some time. At this time, we are looking to reduce the size of the position in favour of adding to other names which we think have better secular tailwinds. "

is what 5i said in your recent market rundown piece. Just wondering what stocks or sectors you would be thinking of in particular, US and Canadian?

thanks as always

Q: Could you please review the recent numbers from CPKR. Do you consider it a reasonable stock to own for the dividend income. Is the dividend sustainable? Payourt ratio? I would have thought that it would act somewhat like a utility with a steady slowly growing business
Thank you......... Paul K.

Q: Would you buy GlXY on this pullback?
Also can you comment on the reasons for the decline in MSFT and Shopify ?