Q: Is it concerning that NVDA had really good results (but not good enough) and the market is selling off? When all the good news is baked into prices and there's nothing stock earnings can do to impress the markets, is it time to get defensive? Is it more tariff and recession related? The 10 yr is down to 4.3% so you would think it's good for equities that rates are coming down, but if the reason for the decline is because we are expecting a recession, it's not good. I'm not really panicking but portfolio is mainly growth oriented and there are signs that the market is rolling over due to excessive valuation and a whole lot of other worries. Any advice on how we should be positioning or getting more defensive? Thanks!
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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: Hello 5i, given the uncertainties and volatility of the TSX and SP 500, would consider selling some US/ CND equities and buy gold and or GIC to weather the possible tariffs? If so what % of the portfolios would you sell? I am retired and have holdings in TFSA, RIF and individual accounts. Thank you in advance!
Q: 5i core principles
Can you clarify what you mean with this statement?
Avoid Concentrated Risks
"Don’t make a portfolio reliant on a single stock."
This is staight forward. But how many do you recommend?
"no matter how well you know a company or how confident you are in it, it can still go down."
How do you mitigate risk? It would seem that having a method of getting out of non or under performing stocks would be prudent.
"Having too many eggs in one basket can cause a lot of problems that are hard to bounce back from."
Are you suggesting having many baskets or having one basket with a few eggs that you carefully monitor?
I will post this under Avoid Concentrated Risks in the forums section if anyone wants to comment.
Can you clarify what you mean with this statement?
Avoid Concentrated Risks
"Don’t make a portfolio reliant on a single stock."
This is staight forward. But how many do you recommend?
"no matter how well you know a company or how confident you are in it, it can still go down."
How do you mitigate risk? It would seem that having a method of getting out of non or under performing stocks would be prudent.
"Having too many eggs in one basket can cause a lot of problems that are hard to bounce back from."
Are you suggesting having many baskets or having one basket with a few eggs that you carefully monitor?
I will post this under Avoid Concentrated Risks in the forums section if anyone wants to comment.
Q: A suggestion in response to Ahmed's Feb 20th question about resources on how to manage a portfolio approaching / during retirement: "Secure Retirement" by Jacques Lussier. A bit academic but I hope you find the concepts useful.
https://rpc.cfainstitute.org/research/foundation/2019/secure-retirement
https://rpc.cfainstitute.org/research/foundation/2019/secure-retirement
Q: How do you handle your portfolio if your concern is cash preservation for yourself rather than for any heirs and the time to recover from market falls is no longer there?
Q: Is there a book or online resources on how to manage your portfolio during retirement (or close to retirement) that you can recommend?
I have read a lot about long term investing, the economical cycles, and related weightings during wealth maximization stage when one has many years before retirement. I recently started asking myself about how that could change when a person approaches retirement and then actually retires. I still have many years before I retire but I would like to plan early.
Your advice is greatly appreciated.
Thank you
I have read a lot about long term investing, the economical cycles, and related weightings during wealth maximization stage when one has many years before retirement. I recently started asking myself about how that could change when a person approaches retirement and then actually retires. I still have many years before I retire but I would like to plan early.
Your advice is greatly appreciated.
Thank you
Q: Good Morning 5i Team,
Retired income investor. Current funds generated keep my wife and I comfortable.
Will be inheriting a large sum in very near future. With ongoing Trump issues should I hold monies in reserve; dollar cost average or go all in.. Are we going to see a major downturn which would provide buying opportunities Your thoughts and insights on how to proceed would be most appreciated.
Retired income investor. Current funds generated keep my wife and I comfortable.
Will be inheriting a large sum in very near future. With ongoing Trump issues should I hold monies in reserve; dollar cost average or go all in.. Are we going to see a major downturn which would provide buying opportunities Your thoughts and insights on how to proceed would be most appreciated.
Q: Hello,
I've heard that stock traders are using AI-automated trading platforms for day trading. Is this practice becoming popular? Does AI truly help improve trading performance? Based on your knowledge, what are the success rates of these trades? Can these AI platforms effectively do the job? I would appreciate your insights. Thanks
I've heard that stock traders are using AI-automated trading platforms for day trading. Is this practice becoming popular? Does AI truly help improve trading performance? Based on your knowledge, what are the success rates of these trades? Can these AI platforms effectively do the job? I would appreciate your insights. Thanks
Q: For now, investors seem to have decided to fade the chaos of Trumpenomics. However, one has to wonder how long the massive contradictions will be ignored.
Scott Bessent (Treasury), the man who wrote the report that identified the contradictions in the UK economy that made George Soros $billions, certainly must see the dangers, and yet, he is the source of one of the major contradictions, when he says the Fed shouldn’t lower rates while Trump demands the opposite.
Is Fed independence under attack and how will investors read this?
Are tariffs, as claimed, for revenue or to reduce imports? They can’t be both.
But if the tax cuts are to be permanent, $3 trillion in revenue has to be found somewhere.
Will Trump let a gnat like the Parliamentarian, or the Chairman of the Federal Reserve, stand in his way?
If, at some point, investors focus on the issues around tariffs-as-revenue, or threats to Fed independence they may begin to worry, and decide to sell equities.
The cost to hedge against such an event would be prohibitively expense given one wouldn’t know whether or when it would occur.
I’m sure 5i is considering these issues, but here is what I am pondering. How does an investor with a large equity portfolio manage this kind of risk? Would growth stocks be hardest hit? Are etfs better than individual stocks? What defensive stocks are likely least affected? Are there equities that would do well in such a scenario? How would bonds perform?
Scott Bessent (Treasury), the man who wrote the report that identified the contradictions in the UK economy that made George Soros $billions, certainly must see the dangers, and yet, he is the source of one of the major contradictions, when he says the Fed shouldn’t lower rates while Trump demands the opposite.
Is Fed independence under attack and how will investors read this?
Are tariffs, as claimed, for revenue or to reduce imports? They can’t be both.
But if the tax cuts are to be permanent, $3 trillion in revenue has to be found somewhere.
Will Trump let a gnat like the Parliamentarian, or the Chairman of the Federal Reserve, stand in his way?
If, at some point, investors focus on the issues around tariffs-as-revenue, or threats to Fed independence they may begin to worry, and decide to sell equities.
The cost to hedge against such an event would be prohibitively expense given one wouldn’t know whether or when it would occur.
I’m sure 5i is considering these issues, but here is what I am pondering. How does an investor with a large equity portfolio manage this kind of risk? Would growth stocks be hardest hit? Are etfs better than individual stocks? What defensive stocks are likely least affected? Are there equities that would do well in such a scenario? How would bonds perform?
Q: Hello 5I, I am in my late 30s and have been a contractor my entire working life. Seeing as I have no pension, my business account is essentially my retirement fund. If you could pick 10 stocks (doesn’t matter if they are Canadian, American, or international), as potential retirement stocks (some combination of capital appreciation and yield), to potentially live off of 15 years down the road, what would they be? I do have a TFSA and RRSPs invested more aggressively.
Thanks
Thanks
Q: Hi Peter & Team,
What's your take on the new BMO SPDR ETFs cs?
https://www.bmoetfs.ca/articles/new-bmo-etfs-launch-summary
Thanks as always for your insight.
What's your take on the new BMO SPDR ETFs cs?
https://www.bmoetfs.ca/articles/new-bmo-etfs-launch-summary
Thanks as always for your insight.
Q: Dear 5i Team:
I always enjoy your 5 from 5i section. Usually contain at least one if not more thought provoking articles and help me to understand the BIG picture better.
First a non-question! Who in the team "curates" these articles?! Thee is some consistency here.
From Ritzhold's article: Based on their take on opportunities, what are the stocks/sectors you would suggest? Financials? Stocks that will benefit from inflation!! Energy. I couldn't "decode" this article into actionable ideas.
I always enjoy your 5 from 5i section. Usually contain at least one if not more thought provoking articles and help me to understand the BIG picture better.
First a non-question! Who in the team "curates" these articles?! Thee is some consistency here.
From Ritzhold's article: Based on their take on opportunities, what are the stocks/sectors you would suggest? Financials? Stocks that will benefit from inflation!! Energy. I couldn't "decode" this article into actionable ideas.
Q: Where can I find a repeat of the Feb 4 webinar by Ryan
Q: I am a retired investor and am concerned of the current state of the Markets in Canada and US.
While we go back and forth on tariffs one thing is becoming clear, the next four years will be filled with uncertainty and disruption. I am hopeful that common sense will prevail and we can move forward in a positive and productive manner, but who knows!!
Given the uncertainty around the current markets and another deadline in 30 days, is there sectors that you would avoid right now or lighten up on? How should investors prepare for this period of uncertainty?
Thank you
Tim
While we go back and forth on tariffs one thing is becoming clear, the next four years will be filled with uncertainty and disruption. I am hopeful that common sense will prevail and we can move forward in a positive and productive manner, but who knows!!
Given the uncertainty around the current markets and another deadline in 30 days, is there sectors that you would avoid right now or lighten up on? How should investors prepare for this period of uncertainty?
Thank you
Tim
Q: What price did the Dow 30 close at the end of 2024.
Q: In the event that the USD reverses course and starts to become even moderately devalued (e.g. BRICS decides to actually develop an alternative trading currency system that by-passes the USD), how should Canadian investors strategize and position themselves within the various asset classes?
Q: Could you please provide the names of the companies in 5i Portfolios, which could see a meaningful impact on their business, in order of Major to Moderate, if the Tariffs on import of goods/oil from Canada, as announced by the US administration, starting Tuesday, continue for at least 3-6 months.
Please exclude the names which are least or not effected.
Thank You
Please exclude the names which are least or not effected.
Thank You
Q: Hi 5i Research team,
Which among your favorite Canadian companies are down significantly this Monday morning, but are unaffected directly and indirectly by the tarifs and conter-tarifs?
Thank you for your collaboration, Eric
Which among your favorite Canadian companies are down significantly this Monday morning, but are unaffected directly and indirectly by the tarifs and conter-tarifs?
Thank you for your collaboration, Eric
Q: As a recently returned member I know you do not generally like to time the market. Situation is, my portfolio is in the hands of an advisor. I've simply not spent as much as I withdraw monthly and now have a reasonably significant amount of cash in my chequing account. Thinking of investing through RBC Direct or Wealth Simple but using my decisions based on your site for direction.
Question is...leaving the money in the account I'm not loosing anything except through inflation. I don't mind waiting given all the noise and Headlines from Trump. Am I at undo risk jumping in now? Do I wait to see what happens? Do I start to trickle in?
Thank you, Dave
Question is...leaving the money in the account I'm not loosing anything except through inflation. I don't mind waiting given all the noise and Headlines from Trump. Am I at undo risk jumping in now? Do I wait to see what happens? Do I start to trickle in?
Thank you, Dave
Q: Hello 5i,
Can you shed some light on Bloomberg's article into alternative off-exchange activity. The report indicated that 51% of all trades now are through this or alternative platforms called dark pools instead of Wall Street. It sounds like rich people getting higher value for their investments than the ordinary joe.
Thank you
D&J
Can you shed some light on Bloomberg's article into alternative off-exchange activity. The report indicated that 51% of all trades now are through this or alternative platforms called dark pools instead of Wall Street. It sounds like rich people getting higher value for their investments than the ordinary joe.
Thank you
D&J