Ask me anything

November 18, 202028 Comments

Our most popular blog topic, “Ask me anything”, is back. This is your chance to ask me questions on the subject of investing, risk management, portfolio management and of course.. technical analysis. To ask a question, you need to post it on the comment section of this blog by midnight Monday November 23rd.

For those who haven’t followed this blog for long – here are the ground rules:

  1. Investment questions should be of broad interest to many investors. They can involve broad-sector questions, questions about various international markets, or questions about individual commodities or bonds.
  2. Please don’t ask about individual stocks. The exception might be in massively followed stocks like the FAANG’s. Better to ask about stock sectors, world markets, asset classes, commodities, etc. For example: Cannabis, gold, European markets, the utilities sector, the tech sector, oil, transports, long bonds, etc. Ask about the Canadian banking sector rather than my opinion on Royal bank. Or you might just have  questions on technical/fundamental analysis rules, or unique strategies like hedging or stop loss rules, etc.
  3. You can ask as simple a question as you wish. And don’t worry – there’s no such thing as a dumb question! But feel free to ask the hard stuff too! I’ll do my best to get as many questions covered as I can.
  4. If you don’t see your question answered – check  the comment section. I often get questions that have been covered in the past, and I will post a link to that reply rather than repeat myself. Also, if the question falls outside of the above 3 rules (example, someone asks for my opinion on ABC stock) – I will post a comment below stating so.

Finally – I’ll do my best to post the answers to your questions by next Thursday November 26th. We’re considering doing the “Answers” follow-ups via a video or series of videos that would incorporate the charts – which I will post on the blog. Either way, I’ll have your answers by late next week.

28 Comments

  • Hello Keith,

    First time poster here. You blog is great and definitely appreciated!

    You’ve mentioned a pull-back / gap fill that you have predicted to be coming soon and that you have sold some of your value stock positions. Are you continuing to sell some of your value stock positions to make room to pounce once the pull back happens? Are you targeting any specific sectors to do your selling and re-purchasing?

    Good news from the Vaccine side keeps coming in and US stimulus package adds some uncertainty.

    Thanks,
    Alan

    Reply
  • Gold:

    I use XGD and was holding a 5% position since April/May.

    This has dwindled to a 3% position due to gains in some other holdings of mine but concerningly, also due to a drop in XGD from ~$24 to ~$20/ share.
    I feel very hesitant to add back to it given the run gold has had but Teal Linde had a miner as his top pick the other day and people call it an inflation hedge.

    Can you make a strong case for holding a 5% position in gold still or should I sell and add elsewhere?

    Thank you.

    Reply
  • Hi Keith, In the Canadian Utilities sector, the pipeline companies like Enbridge and TC Energy are very cheap and seem to be stuck in an under valued range. Does it appear that they will just stay there or be sent even lower over the next few months? I don’t know if people are concerned about the different line approvals with the Biden government or if it’s something else that is sector related or technical?
    Thanks so much,Linsay

    Reply
  • A few prominent Economists and Financial pundits stated emphatically after the March decline and bounce that the market could not sustain a “V” recovery. As we near the end of 2020, despite the US election turmoil, the economic stresses, a second pandemic wave and the potential arrival of a vaccine soon is it possible that a “V” recovery is sustainable? If not, what is the more likely pattern into 2021 and 2022?

    Reply
  • Hi Keith,
    I think on a previous blog you mentioned that you trade the vix, can you recommend something in the tsx for this?
    Thanks

    Joy

    Reply
    • Joy I will answer this one here. There are no specific VIX type indicators or ETF’s for the TSX to my knowledge. The options market is likely too small for a VIX in Canada.

      Reply
  • Hi sir!

    What do you think of preferred shares right now, after LRCNs game changer and possible buybacks coming, reducing supply and main etfs like ZPR,CPD,HPR,etc having to spend the upcoming liquidities in the remaining issues. Your thoughts about corporates ones (bce,BPO,enb,…) vs banks/lifecos(affected by LRCN positively). Finaly, your views about rates in the future.
    Thanks !
    JS

    Reply
  • As an investor seeing the rotation between sectors lately, the vaccine news, and think that we will see a huge demand for vacation/flights/cruise in a 12-18months horizon… where would you choose to invest from a contrarian perspective but without the speculative side of it (ex. I would not get back in a CCL stock, credit and dilution problems, for example).

    Thanks!
    JS

    Reply
  • Hi Keith,
    Once you have determined that you want to buy or sell a particular stock, do you buy or sell your target quantity in 1 transaction at 1 price or do you buy or sell in multiple transactions at multiple prices. If multiple transactions at multiple prices, how do you determine the number of transactions and the quantities and prices for the transaction?

    Reply
  • Will tax loss selling pick up for the beaten down sectors like energy,reits,financials? Is it better to buy now in case prices keep moving higher.

    Reply
  • now that the investment community has decided the fossil energy sector is dead, despite predictions it will be the primary source of energy for the next multiple decades, it there still value to be found there?

    Reply
  • Hi Keith,

    Many believe the USD is heading much lower over the coming year. First, would you agree and second, how low do you think USD/CDN will go? Trying to determine whether to convert from USD to CDN $ for investments in this pullback you are predicting. 🙂 Thank you.

    Reply
  • Hello Keith, Thanks for this great venue that enables us to get questions answered. It’s a generous donation of your valuable time; you are a busy guy!

    I hold a number of US stocks (which I would like to continue to hold) but am worried about the depreciation of the US Dollar. I have happily ridden the strength of the US Dollar vs Canadian Dollar over the years which really helped the profitability of those investments. Is there a hedging strategy you can recommend to protect against the potential decline of the US Dollar and help maintain the value of these US stocks which I would like to continue to hold?
    Best regards,
    Paul

    Reply
  • Others may have asked similar questions, but where do you see gold going in the nest short or intermediate term? $Gold has been a on downward trend since August but there seems to be some support at the $1850 level.

    Reply
  • Wow…………I just reviewed all the questions that have been asked and they are fantastic. I look forward to your answers. I also have a question on where you see Gold going in the next 3 months to 2 years.

    Reply
  • One other question Keith. If the US $$ is headed lower, does it make sense that there will be an inverse relationship with Emerging Markets where they will likely head higher?

    Reply
  • Keith,

    It appears to me the market has already written off the 2020 US Presidential election and moved on but looking at what the Trump legal team is claiming this may just be the beginning of a very rocky ride.

    What are your thoughts on the matter and what do you think would be the best way to hedge against this. Currently considering a position in UVXY shares & options mix. Are there any specific stocks that you think would be good targets for puts based on a combination of weak fundamentals and being currently being overextended?

    Thanks.

    Reply
  • Hi fellow cyclist, is there a better sport?
    Thanks for the terrific blog, various articles and appearances. Always value your knowledge sharing and perspective.
    Can you provide your view please on when to use “stops” and what methodology you prefer?
    Thanks,
    Mark

    Reply
  • Hi Keith,

    Can you comment on the junior Gold Miners (GDXJ) & junior silver miners (silj). I keep hearing other commentators saying that gold and silver will reach new all time highs in 2021.

    Also the corn ETF (CORN)

    Thank you

    Reply
  • I am a dividend investor for required cash flow. I also would like to have some growth opportunity.
    What % of each type should a nice retirement portfolio have? I think 80% dividend and 20% growth.
    Thank you
    Ron

    Reply
    • Hi Ron–I’ll cover this question here rather than on the “Answers” blogs this week.
      Its hard for me to actually answer you–risk tolerance, age, etc are all part of the formula. An Advisor could probably help you–perhaps a fee for service financial planner? Not one of those mutual fund selling planners like a bank, etc –I am referring to a fee for the plan type. They charge you for the plan and don’t offer investment products.
      Or…As a shameless plug–we do have an Income Platform that suits many investors seeking regular income flow. Its comprised of dividend paying stocks that we monitor for safety primarily- less so growth, although you get a bit of growth over time naturally. It also has some liquidity built into it for unexpected expenses, which many income investors seem to periodically need (replace the roof, need new car, etc). We only charge 0.65% to manage it, which we feel is fair. Contact us with the contact button if you want more info.

      Reply
  • Hello Keith,

    An additional question if you do not mind. With the news coming in on vaccines over the past couple of weeks, do you think that now is a good time to start adding a good position into the oil sector? or is this premature?

    Thanks,
    Alan

    Reply
  • I recently bought your book “Sideways “, I’m halfway, love it. Concerning BYD (Boyd Group), the 1 year daily looks like a broadening top, but I’m bullish on stock until I seen this. What is your interpretation of the technicals of BYD here?
    Thanks,

    Reply
    • Thanks Allen re the book. Write a review on Amazon – it helps!
      While I wont do a formal answer here given my “Ask me” rule of no individual stock comments, I will say that many of the gambling stocks like BYD are right at old resistance points. Sure they can break out and go on to all time highs, and many stocks do…but long termed ceilings tend to need a very good reason to do so….

      Reply

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