Investment Q&A

Q: Hi Peter, Ryan and Team,

I was wondering about what is the best course of action for an investor when interest rates rise? Should we get out of growth stocks and move to consumer and noncyclical stocks? If our time frame is 5+ years, should we just stay the course? What 3 or 4 stocks would you recommend when interest rates rise?

Thanks for your helpful advice!

Q: What do you think is the remaining downside in this market? 0% or 5% or more than 10%? It does not bother me because markets go up and markets go down!
Many thanks
Clayton

Q: MKS instruments has an agreement with PHO to purchase their company for an all cash agreement to be finalized by September.. What does this mean for the shareholders?

Q: I own shares in Zoetis and I thought that the recently announced earnings were quite good but the stock has dropped significantly after the earnings announcement. Can I please have your comments on the earnings the company in general and would you recommend that I hang in or move on. Thank You.

Q: In an answer about this fund on March 24 this year you said you thought there were better funds. Could you name a few and explain why please?

Q: I am asking this question on behalf of my son. He does not like to invest on his own, he has no interest and probably never will. I am thinking of setting up some kind of weekly investment program using Wealthsimple (to save on commissions), to acquire a fixed dollar amount of shares/ETFs every week. This will serve as his pension in the long run. He is 31 years old. He is fairly conservative but still young so can easily assume some risk.
1. Do you think using Wealthsimple is a good choice.
2. Do you think that investing a fixed amount every week in the same shares/ETFs is a good strategy OR would you recommend doing so every 2 weeks or on a monthly basis. (If the markets (on average) don't move too much from week to week we can increase the investment window.) Would you recommend a different investment strategy?
3. What would you recommend as a good mixture of ETFs and stocks for somebody of his age and risk appetite (to acquire and build on over time).

Thanks again.

Q: In one of your answers about Affirm, you mentioned that it is "It is still pricey at 14X sales". What numberX sales would you consider as reasonable for a growing company like Affirm.

Q: Hello Peter,
My margin account is dominated with US stocks and a corresponding borrowing of US dollars. The Canadian dollar has been exceptionally strong probably at the top of the trading range. I generally prefer not to speculate on the dollar and keep the borrowings in the same currency as the assets. However, I am tempted to convert about 50% of the US borrowings to Canadian.
In your experience, would you endorse this, or just stay the course?
Regards
Rajiv

Q: Hi, a sector rotation in the market, in recent months from high growth names to value has been quite visible. Value, I believe, also includes cyclicals like financials, industrials and consumer discretionary sectors. Materials and energy, seem to have already shot up multifold. Portfolio Managers appear to agree for this trend to continue for a while. I am trying to catch some more exposure to the Canadian value companies, in those sectors. We own banks 15% and rails 5%. Looking for your expertise to have a list of your preferred names, which are not overly expensive and have room to grow. Also, if you could recommend an etf for Cdn companies to have exposure to value. Thank you

Q: I am allocating 20% of my TFSA specifically to Covid bounce back stocks and have AC as half of the allocation. Would you name 3 other stocks ( with reasons why ) that would fit this theme.
Thanks. Derek

Q: The Evolve ETF, TECH currently shows price discovery at $10.12 Canadian. The US $ version, TECH.U, also shows the same price. I'm confused.

Q: I am thinking about selling Couche Tard and buying GoEasy. I am concerned about what their confusing move for the French grocer meant. It was over so fast and they had to know the government would not been very keen. Was it signaling that they have run out of convenience store targets you think? What was that exercise telling investors? I know you like both but what one do you like better in my TFSA? When do you add sub prime exposure? When credit spreads are massive or when the economy gets back on solid footing? Thanks

Q: Recently, I transferred the following mutual fund 'RBC SELECT GROWTH PORTFOLIO FUND' into a self-directed online brokerage in the approximate sum of $40,000.00.
Can you please recommend a similar ETF(s) that are comparable? Thanks
Matt

Q: Hello. What do you guys make of the $20 million loan from AngloGold that includes a 90 day exclusivity period? Is a deal likely?

Thoughts on the company overall?

Q: PHO Should we wait for a higher offer or sell as it is dead money and is trading at the take out price? Which stocks would be a good replacement either in Canada or US with the same risk profile as PHO?
Thank you for your service!

Q: Hi 5i,
Thinking about initiating position in GXE. How did earnings look to you going forward?
Share price has run up quickly in last two weeks, would you be interested at current prices or does it have more room to move up?
What would be your three best energy plays for short to medium term?
Thx
Jim

Q: Where do you see a bottom for these 3 stocks? Do you think it is worth stepping in to any or all?

Q: I have received voting materials from XOM and there is a lot of discussion about a hedge fund called "Engine No. 1" that is trying to insert some directors on the board of XOM. This is interesting to me. Are you familiar with this effort? Can that even happen? And should I follow XOM's advice and vote along party lines?

Thanks.

Q: In your response to a reader's question about MFC's earnings you said "The stock remains very cheap at 8X earnings, and can benefit if interest rates rise."

While I agree with you, I have now held MFC for 15 years and am beginning to lose patience on the turnaround. MFC pays a nice dividend, for income in my RRIF, but on MarketCall today, Norm Levine is still negative on MFC. He says they may not benefit as much as you might think if interest rates rise.

I have done well on SLF, which is 1.8% of a diversified portfolio,. Should I just throw in the towel on MFC and double my position in SLF?

If not SLF, what would you recommend? Or should I be patient with MFC for a few more years?

Q: What three US and three Canadian Public companies would you recommend for growth and management abilities/performance when looking at a 10 to 15 year horizon. (In order of your preference)

Thank you for the incredible value your investing insight has given me over the years!