Investment Q&A

Q: In your opinion,what are the best sectors in North America to invest in at this time

Q: I've been in the market for about ten years. During that time a certain predictability has emerged in what sorts of stocks get most heavily hit during market routs such as today's., and what sorts of stocks are least damaged. That predictability has disappeared since February. In fact, when the market drops down heavily the stocks most likely to be hit hardest are the ones which used to be hit least, like utilities, REITs, banks, and other dividend stocks. Do you have an explanation for this? Shouldn't the low interest rates which make bonds unattractive protect these stocks to some extent?

Q: Hello Peter,
The quarter beginning January is generally good for the market and this year was no exception until the time global economy was paralyzed by covid19. Now we are in May the time for sell and go away. Besides, history would suggest that the recovery does not happen in a straight line. I would like to know what probability you would give for a correction next couple of weeks, before /after the earnings season ends.
The recovery is usually led by large cap which has largely been the case and recently the small caps are showing signs of life as evidenced by the ETF IWO. I am fully invested participating in the recovery and here is the dilemma. Do I stay the course or should I trade the swing if there is a say a 70 percent or more probability of a correction happening soon. And I am not trying to be exact but reasonably close; and could do with your experience and expert opinion on this. And should I raise cash from large caps or the smaller growth stocks, almost all in the tech sector and in the USA. Both will recover eventually but which group would be primed for a trade if that is the route to go.
Thanking you in advance.
Rajiv

Q: Another member pointed out that you have a link to "Dividend Updates", which I did not notice before. I don't recall seeing an email announcing that.

What is the criteria for entries in that list? Is it all Canadian stocks that report dividend changes? Since Jan 1, 2020?

I maintain my own list of dividend changes for stocks that I own, and noticed that there are a few dividend changes missing from your list. These changes were announced after Jan 1, 2020.

Specifically:

PPL Announced 20200106, up 5%
BPY.UN Announced 20200205, up 0.76%
BCE Announced 20200206, up 5%
BAM.A Announced 20200213, up 12.5%
TD Announced 20200227, up 6.76%
ENGH Announced 20200305, up 22.7%
SGY Announced 20200309, down 90%
VET Announced 20200316, down 82.6%
SGY Announced 20200415, dividend suspended
MX Announced 20200429, down 90%

Q: Good morning guys:
In layman’s term to an average Joe investor, what is going on here ? Why are the markets going north with the economy in a pandemic. I can see the stock market going south real quickly . Can I get your expert opinion on what’s taking place here..
thank you for doing such a great job during this difficult time for all clients
Mark

Q: I am hearing Depression more than a recession. Which one is worse in your opinion. When was the last depression?
Which sector does well in each scenario.

Thanks for the great service.

Q: A comment on Jacques frustration with RBC. I use TD Webbroker and very rarely experienced any disruption of service. I also use BMO Investor line with some minor disruption but not to the extent described by Jacques.

Q: I noticed how supply chain related companies are growing after watching the mess with PPE and other medical supplies. I also read/hear there may be a rise in Nationalism in the future. I tend to believe this also, but Canada rushed signing the CUSMA the last day before breaking from Parliament (which I think was reckless considering we were in a crisis). I'm guessing most people (including myself) don't know a lot of what they signed off on. So do you think it's possible this may limit the amount of "new" Canadian manufacturing taking place as far as North America is concerned?

Q: Under ask a question, how do you find past questions that are not about a security? Members ask questions about capital gains, preferred shares, etc.. This was mentioned in an answer for Carlos on 4/22 where he was directed to the preferred category? What do I insert in the "Companies Addressed in Question" when I want to find out information on what people have written in about in the past of a general nature? Thanks Dennis

Q: Clayton's question and Peter's honest answer prompts me to ask this question: Do you know of anyone or reporting service that focuses on the bad behaviour of corporate management or directors?
As a long time investor I have seen a lot of outright fraud, fraudulent and negligent misrepresentation on the part of corporate management. There is not a lot of legal action against these crimes or civil wrongs and class action law suits take a long time to wind up and usually with insignificant payout to a small investor. Analysts seem silent and most of the guests on market call do not usually highlight it. Vermillion comes to mind. Repeatedly we were told the dividend would not be cut and shortly after this representation, the dividend was cut. Surely management at that time would have known that the dividend would be cut. Full marks to Eric Nuttal on this when he pointed out the huge salary increase taken by a member of management just before the dividend cut. Tricks with the financial reports are also not rare. Thanks for any suggestion you may have. Hans

Q: Before I buy and sell I usually review 5i’s opinion and review StockCharts candlesticks and P&F chart for technical guidance . Investors are presented with presets such as moving averages , MACD, RSI etc . You can add options : OBV, Full stochastics , Channels, Bollinger Bands , Channels, Pivot Points etc etc etc . ( actually too many choices ) . Which options do you find most useful in technical decision making ? Thank you for all of your help .

Q: Hi there, I saw a long term chart the other day of the S&P500 and how the market typically bottoms, relative to the spike in the VIX. In past recessions/corrections, it appeared that the market tended to bottom out about 2 to 3 months after the VIX has spiked. Based on your experience, do you see this happening again this time around? If so, that would approximately give a mid May to mid June bottom. Do you see this pattern to likely repeat or is it this different this time in your opinion and what would the reasoning be?

Thanks for your input and guidance!

Q: I just asked about a yield portfolio to replace income from my newspaper pension and would appreciate guidance about buying.
I.E. each month for 4 months or would you shorten or lengthen the buy period.

Q: Hi,
What industries/sectors in Canada would be a winner in depreciating CAD case , such as earning a mostly the income in USD, etc ?
Would you please suggest few companies with solid balance sheets and growth potential ?

Thanks

Q: I notice that last friday the TSX closed at 14360 and on the end of 2018 it closed at 14323 relatively unchanged over 16.5 months
Out of curiosity I checked my portfolio results for the the above period and was surprised to see that if generated a return of 21.5 %, as a result of picks from your three portfolios
Looking forward to renewing my subscription.

Q: Negativity re Covid 19 seems to be decreasing and attention may be switching to the economy, beginning with this weeks reports. Everything I'm reading suggests that the massive testing required to safely open the economy just isn't there, and a vaccine is far away. Meaning a later rather than sooner scenario for business as usual. Today's retail numbers and bank earnings have moved the market lower and only reflect March's partial shutdown.Do you see the markets recent Covid 19 optimism, being replaced by economic negativity, with markets deteriorating further towards Q2 numbers. I have a large cash position and cognizant of your buy slowly strategy, but can't help thinking the worse is yet to come.
Thanks Peter.

Q: Hi there,

There are some high quality names that have not been beat down in the downturn (ie: KXS, DSG, CSU etc) which have not participated as much in the rebound, which makes sense - but if someone was looking for high quality names that have been beat down that would present a good entry point and a great opportunity at recovering and outperforming in a rebound, what would you recommend looking at?

Thanks!

Q: From your 3 portfolios what are the top 5 names from each you would recommend in order for new money over the next few months for combination of income and growth

Q: What is your opinion of the usefulness of the Shiller CAPE ratio, and is there a site where the CAPE is available for individual companies ?

Thanks,
Mark

Q: please explain an etf hedged to Can. $, and an etf unhedged. which is advantageous when Can. $ rises, when Can.$ falls ?
thank you