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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: In your opinion if Trump cancelled Nafta, which 6 Canadian Co's would be the most affected in order?
Thanks
Read Answer Asked by eugene on November 20, 2017
Q: Hi Peter and Associates,

I hear some talk of tax selling as early as August? Some professionals speak of setting up their portfolios to avoid and/or to take advantage of year end tax selling pressures? Some sectors and/or specific stocks have seen modest to significant declines this year and risk seeing above average volumes of yearend tax loss selling?

Many experts do not suggest trying to time the market but also talk of good entry points to initiate a position if not starting with partial ones to begin. Then there are those who factor in seasonality or other technical indicators. Without wanting to sound pessimistic, more than a few guests on business programs express caution, have increased cash weighting to have dry powder in reserve.Markets are not seen as cheap but opinions vary as what to do?

Bottom line, market corrections are part of reality and one has not occurred in some time? What percentage cash might be viewed as a reasonable cushion for a middle of the road risk investor with a 65/35 (Equity/ Fixed Income) objective who would prefer to reduce equity exposure by building up some cash reserves at this time? What suggestions might you have in response to the above and specifically, what reduction in equity exposure might be reasonable and/or sufficient to have substance? Assume a 5% weight in gold forms part of the overall strategy and a sufficiently large portfolio to provide diversification and no over weightings within it.

Fundamentally, are there any specific strategies an investor might use or at least consider in the last months of any year and more specifically this year?

Thank you.

Mike
Read Answer Asked by Michael on September 01, 2017
Q: SIS has sharply declined from its peak of $17.55 in late May.It is priced to perfection. After miss of expected EPS the last 2 Qs(May by 0.01 & Aug 0.05(0.07 vs 0.12 expected),investors are very unforgiving in this climate(eg geopolitical,Trump,seasonally weak period-mid July to mid Oct,talks of big correction & high valuation) despite 2 good US earnings period & slow & steady growth in economy.Look at similar negative impact on KXS & CGX.On the flip side,see PBH & SHOP.SIS was top pick of 5I on 3/3/16 @ $5.85 & 5/16/16 @ $7.99.I am now looking for an entry point,so please advise what is the catalyst(s) for a turnaround.Thanks for u normal great views & services.
Read Answer Asked by Peter on August 25, 2017
Q: I'm confused by the following 5i answer excerpt in response to Dave's question on August 16th.

"5i Research Answer:
The key here is that when reading our remarks, our comments are meant to reference the 'company' and not the stock price. A declining stock does not make a company 'bad'. We cannot predict sector movements nor stock prices, but we try to focus on the quality of a company."

Do I take from this that 5i doesn't take into account the fundamental "value" of a stock when making its recommendations? If so, I feel this is missing the point in making profitable investment recommendations. The highest "quality" company may be the worst possible investment if its stock is outrageously over-priced.

There also seems to be some inconsistency here as well. In the same answer, it was stated that a company like CRH may have more investment potential than another company since its stock is oversold. Another answer on the 17th suggested that the asker not chase the stock of Chorus Aviation (CHR). These answers indicate to me that stock price is being taken into account in 5i Research recommendations.

So what is it, is stock price ("value") taken into account in 5i Research recommendations or is the "quality" of a company the only criteria used in making the recommendations?

Thanks,
Colin
Read Answer Asked by Colin I on August 17, 2017
Q: On BNN this morning it stated our Canadian Stock Market ranked 96th out 100 world markets. Is there any way to find the figure for foreign buying of Canadian stocks and compare these figures to the past. Are we not in play due to Nafta changes coming and fear of Pres. Trump.,the low demand for commodities, our Liberal Governments Federal & Ontario Provincial, NDP in Alberta and BC. Our high home prices in Toronto and B C and fear of real Estate Collapse or What ? RAK
Read Answer Asked by bob on July 25, 2017
Q: Hi Team Fab. I'm interested in US financials because of Trumps plans. How would you rank these.
Thanks.
Read Answer Asked by Austin on July 12, 2017
Q: Saputo has shown downward momentum since Trump's inauguration. Supposing this risk were overblown, then one would expect the stock price to be 'cheap', but the current price is pretty-much what the long-term trend-line would predict. Put another way: if the price is only now touching the trend-line, does that imply that the Trump factor isn't fully baked-in yet - which, in turn, suggests further declines?
Read Answer Asked by John on July 11, 2017
Q: Hi Team, One of the reasons I own these stocks is that each of them does a lot of business in the U.S. and I wanted that exposure. However, with the renegotiation of NAFTA I am concerned these companies may face some headwinds maintaining and growing their respective businesses. Trump's "buy american" could certainly force some U.S. companies to start looking for U.S. based partnerships rather than Canadian. What does the staff at 5iR think? Is 5iR recommending any action at this time for these types of Canadian companies? Thanks Team Chris
Read Answer Asked by Chris on July 04, 2017
Q: I currently have, in ETFs, 20% in U.S. (VTI) and 10% in international (5% in VEF and 5% in VEE). I'm thinking that long term my U.S. and Int'l should be equal weight as one never knows what countries will perform the best. What are your thoughts on this and recommendations? Thank you.
Read Answer Asked by Pamela on June 13, 2017
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