Investment Q&A

Q: I have investments in the US and Europe and have started to think that India might be a good place to enter into the emerging markets as part of my Global diversification. Would you agree?
What are the options for investing in India and can you make any recommendations?

Q: I have owned for two years, ICICI Bank for international exposure to the Indian market. It has not performed well. Should I sell and move on or hold for now?

Thanks

Q: Hello I am interested in how I could get some exposure to Samsung; perhaps through an ETF here or one in the US. A top ten holding would be preferred, but not necessary. Is the Mawer 102 or 150 likely places to start? Thanks in advance.

Q: I'm underwater on a position in XBZ. Wondering what your thoughts are on the Brazilian economy?

Q: Since the US is allowed to ship oil by tankers starting on JAN 1-2016.Would you invest in shipping oil companies,and which ones would you choose?Thank-you for your excellent service and HAPPY NEW YEAR.DOM.

Q: For 2015 it was most beneficial to be invested outside Canada. I calculate the cost of the Euro rose 6%, the Pound 12% and the U.S. dollar 13%.These are major changes. There seems to be a rush for investors to invest even more outside of Canada. In my mind if I look at a U.S. non hedged etf or mutual fund I would need to subtract 13% fx change off the posted return to get a pure equity, apples to apples comparison. Keeping in mind trying to play the fx guessing game is pointless, do you see a real danger in loading up on foreign equities after such quick and substantial devaluation of the Canadian dollar. When the Canadian dollar does turn around there will be significant drag on the non hedged returns.

Paul

Q: Recently, Vanguard introduced a new etf that tracks international equities ex North America, VIU. I would appreciate your thoughts on this one and also, since it is new and small would you be comfortable holding it now, or suggest another that is similar.

Thank you

Q: Peter and team,

Merry Christmas! I've been thinking of some stocks outside Canada and the Louis Vuitton Moet Hennessy group is on my radar. Their long term chart and divide look good. What are your thoughts on this one?

PS. The rest of my equity portfolio (80% of total)is similar to the 5i model balanced equity portfolio and I have 20 percent of my total invested in short term bonds (cbo and clf) and floating rated HFR.

To fund this purchase, I was thinking of taking down my 5% weighting in HFR.

Thanks!

Q: Hello Team. I would like to start investing more in Europe and am looking at a few ETFs. Zeq, Ve and Xeu but leaning towards the Zeq as it seems a bit bigger. What is your opinion on this? Do you have another you would recommend instead and would you get a an etf that is hedge to the Cdn $ or non hedged and why?

Thank you and Merry Christmas everyone

Q: I want to diversify out of Canada. I'm thinking of an ETF for Europe. Do you have any suggestions?

Q: Hi Peter and team,

I'm looking to add a balanced core of ETF's in my portfolio for everything outside of Canada, what ETF's would you suggest? Some income would be preferable.

Q: Hi,
Why does this one drop a lot today comparing to FXI:us?
Thanks
Jim

Q: Hello Peter and Team,

I bought this ETF a few months ago hoping to participate in Europeam equity rebound. So far not much has happened. Your thoughts on this ETF and please recommend any if you feel will participate in rising European stock prices. Thanks, Rossana.

Q: Team, wonderful service.

I see you suggested GXC or FXI when asked about China ETFs. What are your thoughts regarding CQQQ or YAO as alternatives ? Thank you very much. Have a great holiday season. Nancy

Q: here is more info about that etf
thanks
margit

Q: I am looking for equity diversification outside of the Canadian market. Small portfolio.
What would you suggest given the current value of the Canadian dollar? How would your response differ if our dollar was higher relative to the U.S.?

Q: Your current view on CGR (ETF- ishares global real estate index).
Your top choice in this sector (ETF), for the next 5 years.
Many Thanks .
P.

Q: This turn around story continues to be very exciting. Management has pulled off a near impossible feat. I know overseas but would like your comment?

Q: <I>December 03, 2015 (asked by Desmond)

Question: I would like your opinion on Saputo, would it be a buy at this time. Thanks for all the great information this year.

5i Research Answer:
Saputo is not overly exciting, but in this market that is not a bad thing. Good earnings growth is expected over the next two years, but it does have a fairly weak record of meeting estimates. Its business is fairly secure and its balance sheet is 'OK'. It is buying back stock, and at 21X earnings is a bit expensive. Over the past 15 years the stock is up nearly 10-fold, and we would be comfortable with a long term position.</I>



I have to mostly disagree with your response to Desmond regarding SAP. Or at least the tone I extracted from your response.

How could SAP not be anything but exciting if a person is looking to make money? Unless they "play" stocks for excitement as in gambling and look only at short term fun.

If SAP has been almost a 10 bagger in 15 years that is a 16.5%/annum return plus a constant growing dividend. An original investment of say, $100,000 would now be approx. $1,000,000. A profit of $900,000! Most people and retail investors would love to have that big a profit both $ wise and % wise as most never produce that in a life time.

I am an investor who does not care if a company meets estimates! So what? Who cares other than the media? Without insider information is not an estimate just that? An estimate, a guess?What matters is the question, "Is the company growing itself, revenue and free cashflow...properly and in a sustainable way?"

I find SAP to be exciting in the short term because I can sleep at night knowing I do not have to monitor it daily/weekly and it should continue to make me money as I sleep with a growing dividend income stream for my future retirement days. Just like CNR, ENB, BNS....

Have a great day.

Stan

Q: John Embry wrote an article for the Daily Buy Sell Advisor (Investors' Digest) yesterday which was quite disturbing. It concerned the massive short selling of gold & silver and the exposure of banks, especially the Deutsche Bank to derivatives. Deutsche Bank is reported to have exposure to derivatives exceeding the entire world's GDP. I have concern for the world's financial system. Can you provide either further insight or guidance?