Investment Q&A

Q: Could I ask you to please suggest a half dozen or more equity based inflation protection ideas, perhaps mostly individual stocks and a couple of ETFs, CDN and/or US. Does CME-Q fit the bill at all?
Thanks.

Q: I am considering adding an ETF that provides coverage of assorted/balanced commodities. I would appreciate having some names that you would recommend; Canadian or USA. What is your opinion of adding a position as an uncorrelated asset to balance an all equity portfolio. I hold diversified energy holdings already (pipelines and producing companies in both oil and gas). I also hold mining stocks, RIO and AEM.

Q: I am reading about the benefits of adding commodities to a portfolio (PIMCO /Ibbotson 2006 study). Low correlation with other assets, positive correlation to inflation, optimal allocation from 9 to 29%.

Any overarching comments on the pros and cons of commodities in a portfolio?

Can you recommend how a regular DYI investor might try to add exposure to this area?… an ETF? Any specific securities you recommend taking a closer look at? I don’t want to be buying pork belly contracts!

Lastly, suggestion on ranges of how much commodities should represent in a portfolio? A conservative investor would be X% while an an aggressive investor would be Y%.

Q: I was interested in Stifel’s recent bullish long term forecast for commodities. Do you share in their enthusiasm, and can you suggest a favoured ETF and several preferred stocks in the sector. Thanks, Don

Q: I was reading last week about the Credit Suisse Report where they were suggesting that a commodity play would be a good hedge against inflation. The best way to play it is with futures. Do you agree and what is the easiest way to do it?

Q: I read with tremendous interest the Credit Suisse Global Investment Returns Yearbook 2023 Summary Edition you recently forwarded to members. Impressively researched. Two follow up questions for 5i. First, do you concur with the Report's conclusions that there is an 80% likelihood that inflation will linger for several years? And secondly, the Report suggests the best hedge against inflation is a
balanced portfolio of collateralized commodity futures. Do you agree? And if an investor were to follow this advice, how would one proceed (i.e. what sort of vehicle(s) and what portfolio %)? Thank you.

Q:
Any thoughts on BYD time to add more or sell/hold.

What do you like in finance space looking at COF, FFH, BLK, VISA...I already own GSY. TD,RBC...do i add to existing names or buy something new?

Do you think a commodities bull market is imminent with China opening back up. If you believe the sector will have legs going fwd do you preferer single stocks or an ETF (plse list you picks)

What do you think about Natural gas prices Presently i own 1,000ARC in the space and am still up 5% is it time to cash in ?

Lastly i am sitting on 40% cash expecting another test of the last OCT lows but looking at the recent strength am staring to get a little nervous (FOMO) your thought's please is it time to start to nibble at CSU,BYD,MSFT,APPL,AMAZ ATZ, GOOG

Q: Schedule K1 Tax Form. I was looking at general commodity type funds and see that DBC and PDBC seem somewhat similar if looking at their commodity portfolios. Both deal with 14 traded commodities. Was using ETF.com as the information source.

DBC seems to have more trading volume and also a higher mgmt expense (0.87%).
PDBC has mgmt expense of 0.62% and assets under mgmt seem to be approx 6Bil. vs 2.53Bil with DBC

One difference noticed is that the structure of PDBC doesn't result in the creation of a Schedule K1 Tax Form while DBC does.

Please explain to me like I'm a 12 year old and that I have a "BIG RED L" on my ETF/ETN trading knowledge and trades vehicle.... what significance is the K1 thing and what sort of pitfalls do I need to be aware of if trades are being done in non-registered accounts? Does the K1 have the potential to add complexity and hassle at tax time?

Thanks for all that you folks at 5i are doing. Much appreciated.

Q: My portfolio analysis indicates I am somewhat uderweight in basic material. My present holdings are FNV and NTR. Now that I am retired, my risk level should be considered low to moderate. Dividends are not particularly important. Could you suggest 2 or 3 companies in that sector that have good prospects over the next 5 years. If none are particularly interesting at this time, I would rather wait. In the same vein, could I suggest adding the option of searching by specific sectors in Questions? Thank you.

Q: The current market turmoil has made me realize that a certain amount of commodities exposure as an "asset class" should help with portfolio diversification and therefore risk/return profile. Is this thinking correct? What options, if any, are available for the average retail investor to get broad commodity exposure w/o a lot of overhead which you would recommend?

Q: Given the possibility of a recession and the certainty of volatility for the next couple years, can you give me 4 CDN and 4 US stocks/etf's, you think might provide some safety and reliable, albeit moderated returns? The equities I've listed are my ideas.

Q: Hi Peter
I have read alternative investments as a way diversify the portfolio beyond stocks and bonds.
There appears to be many types of alternative investments and complicated too.
If one were to invest in alternative investments, do you have any recommendations on how to approach such investments?
Are there any ETFs in this space that simplifies the investment approach?
My purpose is for income with a bit of ongoing growth.

Q: What do you think of the Bloomberg commodity index going back to 2005, very big move off of the low. Commodity Cycles are very long lived are they not? Can go on for many years. They have been outperforming Global Equities for awhile now, do you see this continuing for the next 5 years?
What would your best way to participate in this shift.?
Thanks! Gord

Q: I am interested in adding a copper producing company to my portfolio.
I would appreciate your comments on 2 or 3 that I might consider.

Q: HI,

I'm interested in resource stocks that have long term demand - five years or more. Unlike oil/gas stocks that I'm told are too cyclical for long term holds. What resource or resources - copper, steel, uranium, aluminum, fertilizer, etc. - do you feel is reasonably safe and can you suggest some ways to play it in both Canada and the US?

FCX:USDBC:USTECK.B:CANTR:CAAEM:CACMMC:CANUE:US, CLF

Q: According to a G&M article on treat of stagflation, XSB is not a good choice of invest re 40-60 portfolio.
Assuming you agree with this article what would be your top 3 or 4 investment to replace XSB ?

Q: If one is to consider commodity exposure, do you have any recommendations? TECK or RIO or both? Thanks.

Q: Do you think that, while this unfortunate war carries on, industrials will continue to rise?
I read that gold, grain (wheat?), copper, paladium and nickel have reached new highs.
If so, I'd be grateful to know what stocks you would prefer to own to cover some or all of these, plus an assessment of the key metrics for your view.
Thank you for your highly appreciated viewpoints.

Q: Hi,
I am seeing what appears to be a surge in copper and wondering if this might be an opportunity to invest in either an ETF or individual stock. Given the current market, which would you prefer? Risk tolerance is fairly high, but I have little diversification in the materials sector other than GDX and SLX. Most of my available cash is in US dollars, within tax sheltered accounts. Thanks in advance for your sage advice!
Dawn

Q: Good Morning Peter & Team.

I have two questions. Please charge me accordingly. Both have to do with ramifications from increasing cost of OIL.

1. Do you think the ever increasing price of gasoline is going to push more people towards EV and if so, what would be your recommended play to take advantage of this?

2. Commodities especially those coming from mining, and especially those used in the EV industry, appear to be on the rise. What recommendations would you make for us to take advantage of this trend? Right now I have RIO & DML on my radar.

Thanks for all you do

gm