Investment Q&A

Q: Hello Peter.

I am a income investor with a high concentration in blue chip preferred shares...both reset and perpetual. The later being the larger holding. In theory, when interest rates move the two asset classes...Reset/Perpetual should move in opposite directions. This is not the case. In fact I see them moving in tandem.
I'm looking for an alternative to hedge out my income portfolio. I was thinking an inverse long bond ETF (HTD) might be a good investment to protect my overall balance should there be another rate scare like we saw in January.
Your thoughts?

Q: Good Morning
I hold 4 Canadian banks CM, TD, RY and BNS in an unregistered account. The bank stocks comprise just under 20% of my portfolio and each has approximately a 50% capital gain. My only other financial stock is a 2.5% position in PWF. Capital gains in my account this year will likely be taxed at 15%. I am considering selling one of the bank stocks (perhaps CM) and investing the proceeds in SLF. I have chosen SLF for it's relatively low valuation and secure dividend.
Is reducing the allocation to Canadian banks appropriate, or does the tax which has to be paid cancel the benefit?
Which bank would you sell?
Is SLF a suitable alternative or is there another company that you would prefer. I already have full positions in CNR and BAM.A.
Thanks
David

Q: Please comment on their Q4 report? Have you met the management team and what is your opinion of them? Thanks.

Q: Would you please provide an update on this company and there outlook for a long term hold for income and growth.

Q: hello peter;

could I please have your up to date opinion
for fie?

Q: What kind of long term dividend growth would you expect from this company? Can they keep up the historic 8% annually for the next ten years or is this asking too much. Their company presentation claims that they have a naturally higher ROE than other insurers. They do not seem to be aggressive investing their float like Fairfax is. Thanks.

Q: I am concerned about the risk associated with investing in large non Canadian bank stocks. Using Barclays as an example The shareholders’ equity in Barclays is $84bn, sitting on top of $2 trillion of assets. Putting that into perspective, the equity is 4.3pc of the total assets. It doesn’t take much of a movement in the value of those mortgages and loans written all over the world to cause serious problems for those holding the shares. Since the shareholders equity is the difference between two very large numbers the shareholders can easily be wiped out by small movements in asset values. In the case of banks like HSBC (HSBC.US) the exposure to places such as China makes the value of these assets questionable.

Do you agree with the analysis here and does any of this reasoning apply to Canadian or US banks? If so which banks are risky?

Q: Aegon,a Dutch insurer.
What are your thoughts on this company?

Q: BMO EQUAL WEIGHT US BKS INDEX ETF symbol ZBK. What are your thoughts on this ETF? I currently own this ETF .

Dolores

Q: hello team, can't tell you how helpful your services continue to be, many thanks!
my question is, do you have any comments on accord financial, I have a small investment in the company and would appreciate your assesment.
best regards,
ralph

Q: Your subscriber John asked about switching from Manulife to Element
Financial. I own both stocks (MFC 2.1%, EFN 1.8%) and both are down
on the same percentage. Do you think the switching is wise in my
case? If you think it is ok, when is the best timing? In the
Financial sector, I also own HCG-2%, TD & BNS-9% . Thanks

Q: Hi 5i team! I noticed this morning that CI had been downgraded to a hold from a buy. Any comments? Do you think it is still worthwhile holding on to? I am already underwater with it. Cheers, Tamara

Q: I have a lot of bank stocks that I have been accumulated with the dividend
reinvestment plan over the last 30 years. I do not want to sell them because it would trigger a large capital gain, besides it is adding up to a lot of dividends, with I will use in my retirement. Yes, Yes I know that I am overweight in that sector. I want to protect myself on a down turn, and don't pike the puts , because the premiums are so high.I was thinking about the huv etf, I don't fully understand it, is there "time decay" as there is with leveraged etfs.Do you think that this product will suite my goals, and or do you have any other idea's that would protect me on the downside?

thank-you and have a nice day

Q: Hi,

What is 5i's opinion of EL Financial (ELF) as a long-term hold?

Thanks,
IF

Q: Hi Peter and team,

I would like your thoughts on the recent partnership deal with Credit Suisse and also what your outlook is on CF in the near-term? I would have thought they'd be showing more correlation to the market and resources sector rising of late. Do you think if there continues to be strong market recovery that they should start to do well?

Thanks

Q: What is your opinion on the CWB addition of the GE credit Franchise and the Banks expansion plans.

Q: How would you compare Fiera Capital and Gluskin Sheff going forward.

Q: Hi 5i: I've been intending to switch SLF for TD for a while, but every time I go to pull the trigger, SLF goes up. Do you think that is a good move right now? My motivation is that banks will do better than lifecos until rates start to move up. Any comment on my choice of bank - I already have BNS?

Q: I currently hold mfc in my rrsp, down about 15% on it(less with div's). I am considering switching to slf as I am somewhat frustrated with mfc, however, I am thinking mfc will eventually get more value out of the us aquisition, asian expansion, and recent standard life addition transferred to the bottom line. it does seem to take forever with these guys as opposed to slf's performance. would you do the switch or give mfc more time. brokerage fees are not an issue

Q: Hello, Many Real estate investment trusts(e.g. IVR)and related ETFs (e.g. REM) distribute ~10 to 12% dividend. This appears very good but may be a high risk investment. What is your opinion about IVR REIT and REM etf?. Which one is better? or may be none?

Thanks