Investment Q&A

Q: ..how do you think HFR and CVD will perform as interest rates skid along the bottom?

Q: What do you think about leveraging into this decline. For example I could borrow $100,000.00 on my line of credit at 1 over prime. Prime currently at .75 percent. The interest is tax deductible. I could spread the investment out over 5 stocks that are paying over 5% and just let the dividends pay off the load. I have enough faith that we are close to the bottom and have no doubts that most blue chip stocks are not going to drop that much more.

Q: I hear you when you say that we shouldn't be too involved in playing the exchange rate between the Canadian and American dollar. But would this not be a reasonable way: buy sunlife in American dollars, since i have them. If the Canadian dollar goes up i sell in canadian dollars. If it goes down, i still have my American dollars in Sunlife that i had before
Looks good but am i missing anything?
Thanks

Q: When do they report ? Thanks.

Q: Consumers are refraining but going out to eat. Do you see any value in picking up a position here with MTY?

Q: Hi 5I,

Looking back to 2008 the utilities sector held relative well to the meltdown of the TSX. This time around ZUT is following the TSX down. One would think people still need hydro to heat/cook.

Can you comment on why this is happening? Is there a fear these companies will become insolvent due to their balance sheets?

Thx,
Chris M.

Q: Why did gold drop last week, is there something else going on?
Also, Options expiration is coming up Friday, in what way do you think this may impact the markets this week?
Thank you
Kim

Q: With all the selling taking place, I am curious about what characterizes a buyer now. Someone suggested that companies are doing a lot of buying of their own stocks, which doesn't make sense to me. I would think a lot of average investors looking for bargains, especially high yields, are doing the buying. I would greatly appreciate your opinion on this.

Q: After the "blood in the streets" kind of day we have had today, March 12, was I "crazy" to add to my holdings of the aforementioned? Are their dividends as reliable as I perceive them to be? FYI, I am a year away from retirement at age 60 and value dividend income for a portion of my portfolio.

Q: Am surprised at the relative strength of this stock. Is there something specific that is happening here ?

Q: Q1. Can you describe a bit what actually happens when the FED says they will inject US 1 Trillion into the market. Where will that money go and is it a loan? In the 2009 recession, it was a loan to the collapsing banks which I think eventually got paid back.

Q2. Regarding increased dividend yield on falling values of stocks, how does this work? The funds are changing hands outside of the company, so if share price drop was the only thing to happen, theoretically the continuation of the dividend should not be in doubt. Maybe the business of the company might drop for some reason if share price drops.

Most grateful for all the guidance you provide to investors and the education you offer on the function of the stock market.

Q: I feel that management deceived their shareholders. "The Company has agreed to the buy-out of the contractual bonus compensation arrangements with the CEO". He took a huge payment. "These executives will remain in their respective positions, with current base salaries and benefits continuing, along with a new bonus plan." That is an outright lie. No sooner did he get his huge payment then the CEO announces his retirement. Really deceitful. Time to hang up on this company?

Q: Loved your special updates. Please provide your insights as often as possible. Very helpful!

Bought some stocks last week and planning to continue slowly this week. It looks like it s going to be down tomorrow after the Fed announcement...

My wishlist is ready. Fairfax vs Onex, which one do you prefer for long term hold (if you like) or a bit of both. Can you briefly comment on main risks for Onex.

Thank you!

Q: Is there an ETF that concentrates on 5G technology.
One that may be a candidate to acquire in the down market or would CSCO be a better choice.

Q: Need to add to the financial sector. Prefer an alternative to banks and insurance because of dealing interest rates. I already have BAM.A
Ideas?

Q: Please comment briefly as appropriate on the above stocks covered by 5i. Add,sell or hold? 1)EIF 1.5% position/ p/p$44 / Investment a/c. Recent big drop to $32.19 2)SU 1% / $42.59 / RIF. Sharp drop in oil price 3)AW.un 1.5% /$43.63 /Inv.a/c. 4)Real 2% / $14.25 / Tfsa. Sharp drop today. 5)STC 1% / $2.47 /Tfsa. Down since recent Q. 6)Ray.a 1.5% / $9.70 / Rif. Down trend.Decent results,but no love. 7)Qst 1.5% /$5.01/ Rif. Very sharp drop last few days. 8)Hr.un 3.5% / $21.33 / Rif. Its building in Calgary is leased to Ecana,now IVV( US$2.60.) Thanks for u usual great services & views

Q: First off I just want to say thank you so much for your special report you issued last week. For a young investor like myself who has never been through events like we currently are experiencing your advice has been extremely valuable to help navigate these uncharted waters.

I have been sitting on some cash and would like to increase my technology (both Canada and the US) exposure as it is low right now. I am comfortable with moderate risk. I have a few questions on this subject so feel free to subtract as many credits as you see fit:
1) For Canadian tech companies, after reading your special report and the Q&A's, it seems you like CSU, KXS, DSG, and SHOP. Would you recommend buying these individual companies (or others?) or would XIT be a reasonable alternative with these 4 companies composing ~61%? Or is there another tech etf you would suggest?
2) For US tech companies (or any US company for that matter), with the Canadian dollar being low, would you recommend looking at specific US companies or a Canadian ETF that holds US tech companies? I am worried the exchange would eat into possible returns. Do you have any recommendations (e.g. I have seen you mention XQQ for an etf, SKYY highlighted in etfupdate, and companies like MSFT, GOOG, TEAM, etc)?

Thanks for all that you do.

Q: I have provided a sampling of the Preferred Shares I have in my holdings where most of them have rate renewals out into 2023/24. With prospect of a recession and lower interest rates I have locked in returns for the short-term, would you be able to provide some insight into why their market valuation has dropped 25-30% in most cases? Are investors doubting Royal Bank, Bell, Algonquin Power, etc of being able to meet their debt obligations?

Q: Dear 5i;
I watch the Asian and Futures market in the evenings as a guide or possible indicator as to what North American markets might do the next morning / day and I'm sure I'm not alone in doing this .
I find it extremely irritating and unfair that I'm unable to take advantage of anticipated increases or decreases in the US and Can markets as a result of the Futures market being significantly up or down as the North American markets are already up or down big time before the markets are even open for trade ( ie the pre-market trading ).
Am i missing something here or are all of us ordinary investors stuck with this unfair system ( in my view anyways ) ?
Thanks
Bill C.

Q: May I please have your thoughts on IIP.UN in the current environment? It appears to have held up relatively well. As a growth oriented investor I do not have any REIT exposure. However, I have always regretted not establishing a position in InterRent as its performance over the years has been excellent.