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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Is it possible that in this day and age a major North American exchange (TSX) can be down for better than half the day, when the markets are moving 5%?


Sheldon
Read Answer Asked by Sheldon on February 27, 2020
Q: Hi 5i team,

There is no much working in the market these days, which I guess is an understatement. Two stocks that are positively correlated with the virus are MRNA and GILD. There is only one dated question on MRNA. It is developing a potential vaccine for the disease. There is a recent question on GILD, but you did not mention the potential of the drug it is developing to treat people with the disease, likely due to how the question was posed. Both companies are fast-tracking their efforts. MRNA seems to have gone parabolic and hence, looks a lot more risky here. GILD was a value trap for years with a poor pipeline but seems to be breaking out now, which I attribute to the potential of the new drug, if it works.

What are your thoughts on MRNA and GILD is view of their efforts to combat the coronavirus?

Thanks again.
Dave
Read Answer Asked by Dave on February 27, 2020
Q: I am watching and waiting for the market to settle down and then the market will take another step or steps higher in the coming months and years. I will be adding to my current complement of stocks with the cash that I have recently set aside. Any other advice?
Read Answer Asked by Clayton on February 27, 2020
Q: North American markets have had a great run the past two years and now it looks like we are in for a prolonged period of selling, especially given that the corvid 19 virus is not a "one off" event but a protracted worry and uncertainty exacerbated by disinformation on social media. The markets were long overdue for such a correction. For the meantime, I have gone to cash in registered and non-registered accounts and bought inverse etfs like HQD (2X Nasdaq bear), HXD (2X SPX60), and HUV (volatility index) to continue making modest gains during the downturn (instead of losing money!). Are there any other defensive (inverse) etfs you could recommend?
Read Answer Asked by David on February 27, 2020
Q: Hi Guys,
Bought some puts on the above as insurance a few weeks ago and so far so good, they are the 104$ strike that expire in June, not sure if I should grab the profits now or wait a little longer. I know you boys trade options in the US so any insight would be appreciated as I'm relatively newcomer to options.
Thanks
Anthony
Read Answer Asked by Anthony on February 27, 2020
Q: I would like to thank Steve for his additional comments on opening a TFSA for my grandson.
Read Answer Asked by Allen on February 27, 2020
Q: In regards to Bernie Sanders question even if he is elected president I think he will also need to get the Senate and the House of Representatives backing his proposed healthcare legislation which is far from a sure thing. Considering the difficulty Obama had in legislating the affordable health care act (AKA Obama Care) it remains to be seen how much success Mr. Sanders will achieve with his healthcare proposals. All that being said the market can and does act on emotions so a Sanders presidency could be expected to increase volatility in healthcare stocks. I agree completely with your position not to react to speculation on Mr. Sanders. I always want to ride out volatility. As an aside I doubt any one of us has read Mr. Sanders detailed proposals on health care so our opinions about his healthcare proposals are already an emotional response based on fears and sound bites...not a recipe for successful investing.
Regards,
Jim
Read Answer Asked by James on February 27, 2020