Investment Q&A

Q: I have Ryan's read excellent article dealing with the impact of the US election on Canada.

However, I am somewhat bewildered by recent market activity - especially on the downside here in Canada.

The opinion has been expressed that interest rate incrases are/were already baked into the market. Can you quantify that in any way? e.g. 3-5%; 1-2% .... to what degree they are "baked in".

The reason I ask is that, it seems like all the media had to this week was mention the likelihood of inflation driven interest rate increases in the USA and sectors here like utilities and REITS took it on the chin.

How much more downside can we expect given the impact of just a few words about possible Trump moves to drive the USA economy when the decision(s) are made to actually increase rates in the USA?

Could this downward pressure be magnified if, in addition, we see US corporate taxes reduced and see some companies start to shift production to the US.

How likely is it that we are facing the prospects of a signicant bear market lasting a few years here?

Or is this a knee jerk reaction right now like Brexit that will likely reverse itself over the next few weeks?

Any light you can shed on this will be greatly appreciated.

Q: I have $5000 I would like to put into a pipeline and wondered if you could recommend something? Perhaps one that might benefit from a Trump presidency. Some income would be nice but not essential. They all seem to be dropping which is the opposite I thought they would do. That's why I need 5i. Thank you :-)

Q: Could you please provide an updated view of this company.

Q: KWH.UN has dropped quite significantly, even though they have declared a dividend increase and improved numbers all round last quarter (EBITDA, Revenue, Customer base, etc). Any reason for the drop that you can see, or is it just the run from Canada and income stocks. Would you rate it a buy at these prices for the income investor?

Q: Hi Peter and company
I am sitting on a load of cash with a watch list itching to go but I dont know when I should pull the trigger.Maybe now or wait till 2017?I buy only CAN stocks.Thought there might be a downturn but so far hasnt happened.
Peter N

Q: I appreciated your answer to Michael regarding SJ (which we hold in several accounts) and the effect that Trump's position on coal may have on SJ. I came across this quote when a google search about this topic came up with this: "Why Trump Probably Can't Bring Back Coal (or Kill Renewables Either") The reason, as this former coal miner stated is that, basically, coal isn't as competitive as it once was. He said: “Big picture, I would imagine the U.S. is slower to phase out coal than a president who would have retained the Clean Power Plan. I think coal power is not coming back in this country regardless of what regulatory changes a President Trump is going to make. Economically, it is no longer as competitive as it used to be.”

My own personal opinion is that we shouldn't make rash decisions about what Trump may or may not do. This would apply to stocks that 5i covers or has commented on, such as BEP.UN, and others.

I do appreciate the 'tune out the noise, level-headed advice' that the small retail investor consistently receives from Peter, Ryan, and the 5i team.

Q: A number of the companies that grow by acquisition seem to be under greater pressure right now. I was wondering, if we are now in a context in which interest rates are likely to increase, whether companies of this kind (and thus their stock prices) will be impacted in terms of their capacity for growth and their ROEs. Decisions regarding any given company require more detailed financial assessments, so your general thoughts are what I am wondering about.

Thanks for the wonderful guidance that you provide.

Q: Please comment on BOS results. If I sell, what should be a good replacement.

Q: Can you please comment on Intertain's Quarter? Do you see an eventual sale of Amaya effecting Intertain at all?
Thank you

Q: I have recently joined 5i and have started converting one of my portfolios to the 5i Balanced Equity Portfolio. Given the limited funds, I am only comfortable holding about 10 positions. I am contributing to this account regularly, with the intention of building up to a full 20 positions within 12-18 months. Given today's conditions, which companies would be best to get into first?

I already hold full positions in CSU, KXS, NFI and SIS.

Thank you

Q: What is your opinion on these multiple factor ishares? They currently appear new as they do not have many shares outstanding, 1MMM to 2.5mm and have low volumes of trade. Should this be a concern a this point?

Q: Hi everyone,

Is it time to buy DHX or would I get a better deal if I wait for another couple of weeks?

What is the downside for DHX from here? The risks?

I am a long-term investor although it really hasn't worked well as a strategy. I have Disney only in movie industry and currently sitting on a loss.

Thanks for all your good work and independent advice.

Q: the Brookfield complex (bam.a.....bip.un ....bep.un)has been off meaningfully post the US election .Are you concerned about anything fundamentally different post the election for the BAM names?

Q: Do you have an opinion as to when these tech stocks will stop going down, I own them all and want to purchase more to average down (buy the dip) Just looking for your opinion, thank you!

Q: My portfolio is light on industrials as I only own wsp and sis. What else could I add? I'm not comfortable with nfi as I find it expensive. What are 4 or 5 names that you like in the industrial sector. Would a rail company be a good idea as I beleive they fall under industrials.

Q: In anticipation of inflation I am planning to buy some gold stock/ETFs. Above I listed some of the Gold stocks I am interested, which one of them would you recommend or do you have another suggestion.
Thanks

Q: Hi Peter and Ryan,

Dynacor released their Q results. Can I please get your opinion.

Thanks

Dave

Q: I am an 87 yr old retiree living on dividend income. I have a reasonable holding of CPG in both my regular investment account and also in my TFSA, both of which are currently in substantial loss positions. Obviously, a recovery is in large part dependent on the price of oil. At my age it doesn't look likely that I will recover my losses. I'm thinking of selling the shares in my investment account & using the loss to shelter some gains. If there is an excess, I may sell some of a profitable holding and then buy those back after the 30 day period [a strategy I have used before]. I'm also wondering if I should bite the bullet and switch my holding in the TFSA to something else. Should I sell now or is there a reasonable chance of a substantial increase in value in, say, the next year.
Thanks.

Q: Do you like the prospects of base metals, even after the recent run up?

What do you think of Xbm at these levels? It's nearly doubled in the past few months. Would you wait for a pullback before entering?

Alternatively, should I buy a basket of 4-5 stocks, and which might you recommend?

Thx

KR

Q: Hi, can I gave your insight on SJ's outlook in a recessionary downturn in North America? Is SJ tied to the coal industry? If yes, would a return to US coal positively impact SJ?