Investment Q&A

Q: What's up with the US banks????? Only real time reply would be useful as today's move confirms recent movement.

Q: The Canadian and US markets were DOWN SHARPLY this morning. The Cdn (XIU) currently down almost 0.5% and the US (SPY) almost 0.8%, although they now (1230) seem to be recovering a bit. Do you know WHY? What impact do you see over the next few days and months?

Thank you!

Q: The Canadian bank stocks have been declining since the last week Fed Reserves rate hike and potential more hikes. What is your opinion about Canadian banks in short run (one year or so) and long run (3-5 years)? From your professional point of view, when the Central Bank is about to raise rates in the future?

Q: Could you please give me your take HWD's 4th quarter results and their outlook for 2017. they do talk about the possible ramifications of possible or probable Trump trade changes as a headwind but with most of their product and biz still in the USA the future still looks good to me here.I hold about a 2-3% position in my tfsa and rrsp (up about 15% on hwd). Do you consider this worth holding or maybe moving on.I have a well diversified portfolio holding many of 5i's recommendations. I'm not sure how the market will react to the results on Monday, if it dives I am considering adding a bit and if it spikes I may trim a bit. I do like the fact that it is not widely followed and very few shares out and I do plan on holding it for at least a couple of years. Looking forward to your take on it.

thanks Tom

Q: Looks like the banks are softening both in the US + Canada I own BAC Royal MS BNS PYPL and C... Time to take profits or wait the correction out? Thanks for your valued opinion

Q: Hello Team 5i, I'm scared about a possible Trump Dump, not knowing what he will say/do next.....so staying away from Single Stocks, but do not want to stay out of Market. Hence looking at ETFs, and would appreciate your Ranking of these.

Q: Hello Peter et al.

Ithaca has come out with the information circular for shareholders to tender their shares for $1.95. The circular puts the company potential down in its ability to grow. If it is so bad why are they trying to buy it lol!!!!! They must be taking lessons from Donald Trump's White House with 'False News'. I was disgusted with what I read. I believe the company has higher value potential and people invest to take risk to get reward and they say they want to protect us from the risk. It is more like they want to rob us of the reward!!!!!! I thought it was going to be a vote but from what I understand from the circular is you vote yes by tendering your shares for $1.95 and vote no by doing nothing. Is my interpretation correct?

What is your opinion of the takeover based on the circular and what is your opinion of the circular?

Thanks,

Brendan

Q: Re: Your response of March 8, 2017

What tweet from the President are you referring to ?

Q: Hello:
RE: XLE Energy Select Sector SPDR (ETF)
(This ETF does not appear in your dropdown menu).

With the price of oil dropping today to the $49 level,
my position in XLE is down 10 % since I purchased mid Nov 2016.
I also hold SPE & PXT in my TFSA; my total Energy exposure is just over 4.5% of my total holdings.
What are your thoughts on XLE with regard to having it as a core holding in the energy space ? Would you recommend a Canadian energy ETF instead (i.e. ZEO) ?
My risk tolerance is medium to high, am looking for growth.
I purchased this ETF after Nov 8th and researched the "Trump" factor.
Appreciate your input ... thanks, Steve.

Q: Just wandering if you had any idea why there was a sharp pullback today in the face of a fairly decent quarterly report.Also would you look at adding now,I have a .75% position currently in the stock thanks

Q: Any explanation for GUD's weakness the past couple of days?

Q: Hello, my question is about an article I read in CMS. Bill Gross says investors need to watch only one number in 2017 to figure out what returns are going to look like across the various markets, and that’s whether the 10-year Treasury yield crosses the 2.6% mark. As of today the 10-year yield is 2.48%. "If 2.6% is broken on the upside...a secular bear bond market has begun," Gross said. "Watch the 2.6% level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important than dollar/euro parity at 1.00. It is the key to interest rate levels and perhaps stock prices in 2017."
So my questions are, what will happen if it crosses the 2.6% mark? Does this mean that the yield on bond ETFs such as XBB and VSB will increase? Does this mean that this will be good for the stoch market in general? What is a secular bear bond market?Regards, Gervais

Q: Hello,i'am really concerned that the media and Democrates in the states are going to try and shut Trump down, or impeach him,with all they got to throw at him, real or not.
If they are to succeed, i'am thinking the market will take a big hit.
I was thinking of liquidating up to 40% of my portfolio and ride this circus out.
What would be the best way to do this GIC,Bonds,ETF or something else
Thanks

Q: could you please compare Mal to Eif with the usual metrics and which would you prefer for a 2 to 3 year hold? Also, will Mal benefit from Trumps increase in military spending? Thanx

Q: Hello 5i team,
Your article on hedging for a market downturn is quite timely; thank you.
A 5% or 10% correction is not too worrisome as it could be recovered in a relatively short period of time.
I do not foresee a "black swan" event; do you? In my opinion, the current steepness of the yield curve does not signal the eventuality of such an event.
Regards,
Antoine

Q: Gold and Silver stocks got smashed across the board yesterday. Gold was down only $ 4.00 and Silver was down 8 cents, not enough to cause gold & silver stocks to go down 5 % to 11 %. What gives ?? Thanks Bob

Q: why the big drop at the end of the day?

Q: Regarding your comments on Magna's earnings - is it time to sell? I see many analysts see potential but there is so much uncertainty thanks to Trump that it could be many years before it makes gains. Thanks!

Q: I have been considering moving to a larger percentage of cash (60-70%)
My concern is that with the proposed tax plan due from Trump next week that the market is thinking one thing and if it does not line up with what is proposed that we will see a dramatic fall.
Can I get your thoughts please.

Thanks

Q: I know US stocks aren't your thing, but could you give me an opinion on Molina Healthcare. It looks very interesting to me after it's 17% drop yesterday.