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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: I see you continue to have faith in Goeasy. On the weekend the Toronto Star had an article on potential reductions to the maximum allowable interest rate for the alternative lending market. As a longterm holder, and knowing of your previous position that this has been a potential concern for years, I’m wondering if this time is different. An unpopular government, public anger at corporate profits, a usury rate set when interest rates were much higher all lead me to believe the maximum rate might finally be reduced. Your thoughts please.
Read Answer Asked by Warren on September 20, 2022
Q: Can you comment on the spinoff news at BAM? Some details were disclosed and it sounds bullish but would appreciate your perspective.
Read Answer Asked by Mike on September 15, 2022
Q: I currently own the following banks (weightings): TD (5%), BNS (5%), BMO (2%). I'm assuming that swapping BMO (and its 2% weighting) for GSY would be better diversification, correct ?

Would this move create a big exchange of risk ?

Could GSY survive a prolonged economic downturn - eg. is the housing bubble a risk ?

Is today's valuation already pricing in a potential "tough lending environment" ?

In that scenario, would they have an adequate balance sheet survive ?
Read Answer Asked by James on September 13, 2022
Q: Hello 5i,

I have a tax loss to harvest in a non-register account with JPM after ex-div; hard to believe considering rates are rising and JPM is what I thought was the blue chip of blue chips. Financials sure are not well liked in the current environment. What would be a good substitute to buy? WFC or BAC or another US bank you might recommend?
Read Answer Asked by Dean on September 13, 2022
Q: Hi,
Your outlook for this company in the rising interest scenario. Is rising rate will be headwind or tailwind for this company? Companies past financial figures are good form investors point of view. In last 10 years it is buying back shares (share count down 50%), increasing dividend (dividend increased to 400%), sales are rising (almost doubled). Can It be considered as a good investment? If not then can you suggest some good alternative?
Thanks
Read Answer Asked by Piyush on September 12, 2022
Q: I'm keen to exchange the shares of BAMR for BAM.A, especially before the spinout on one of the "divisions" of BAM.A. Recently in a Q&A, you mentioned now might not be the time to do it. Me, wondering what would be the ideal or right time look like to do this exchange. Thanks for such a narrative.......Tom
Read Answer Asked by Tom on September 09, 2022
Q: It seems like the NAV and distribution on this are extremely well protected, if I understand it correctly.
Would any drop in the price of the underlying banks be deducted from the NAV of BR before affecting the NAV of BR.PR? (would NAV of BR have to go to zero before affecting the NAV of BK.PR?)
And in the unlikely case that several of the banks cut their divs, would some of that cut be accommodated by cuts to the distribution of BR before affecting BK.PR's distribution?
Last, if the price of BK.PR falls due to sentiment - as opposed to drop in NAV - the product can be at some point sold back to the issuer at the then current NAV?
Is there a risk I am not considering?
Thanks,
Read Answer Asked by Peter on September 02, 2022
Q: When looking at historical Canadian bank returns, BNS has lagged significantly. I didn't isolate too many periods, but the longer term you go, the more consistent the underperforming becomes. I understand the past isn't an indication of the future, but perhaps their approach to international exposure just isn't the way to go? There appears to be a lot of conviction for BNS relative to others, does it's poor stock growth relatively not concern 5i? What keeps you the most confident on BNS? If you jumped ship on BNS, which would be the next on that would be in your model portfolios?
Read Answer Asked by Jordan on September 02, 2022
Q: Hello Peter,
Can you please comment on good natured results? Is it fair to say Blackstone is more for income oriented investors given its dividend and Blackrock is more for growth oriented investors. Also, would be better to diversify into both instead of picking one as i already own fair amount of BAM? Is Manulife worth a hold for long term given its decent dividend? thanks very much
Read Answer Asked by umedali on September 01, 2022
Q: Is it worthwhile to own both Etherum and Bitcoin? Are they really different or one of them is enough to be exposed to the crypto sector? Etherum seems to fare a bit better. Thanks again.
Read Answer Asked by Denise on September 01, 2022
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