Investment Q&A

Q: Hi guys,

In today's environment, would you be more inclined to let these names grow a little larger than normal ie: instead of selling the stock when it grows to 7% (back to 4%) of your portfolio, let it get to 10%.
Thanks

Jim

Q: I use a big bank trading platform but possess limited skill sets in setting up the stock screeners. We can recognize however, this book value to stock price. (aware of the temporary dividend suspension).
How can I more easily find investments like this one ?

Q: I have most of my wealth in an unregistered account and would like to invest in the safety of Bonds or GIC's but I don't like that they get fully taxed. Are there any ETF's or funds you would suggest that use derivatives or some other wizardy to turn Bond/GIC income into dividends so they are taxed more favorably? All without giving the advantage back through high fees or MER?

Q: What are some best ETFs, Mutual Funds that is best to park temporary cash holdings? Preferably something that's safe (but not an interest-bearing savings account) with the expectation that it's better than holding actual cash and that I can sell easily to use within less than a year time-frame?

Q: Since the world is engaged in massive bailouts and handouts, does taking a position in US treasuries become more appealing. I know very little about govt bonds other than they are supposed to be safe and they are uncorrelated to the stock market, but if the US govt (and everyone else) is going to buy huge amounts of their own treasuries, it seems this might be a place to make money, not just store it. Is this thinking flawed?
If i take a position in ztl, is this just a safety play, or can it continue to make big gains? Are there other long bond etfs that i should consider?
Thanks for all your help in demystifying the investing world
t

Q: Hi
El-ann asked about PUTS on April 21, 2020.
The Montreal Exchange offers free seminars and they partnered with OptionsPlay, a software that provides feasiblity scenarios. FREE if signed up via Montreal Exchange, OptionsPlay offers weekly lessons. You can ask questions. etc. So save the $1300 and put it in the market instead!

Q: In my Margin Account I had FRU and IPL which I sold as the dividend had dropped form the 7% range to~2%. The G & M referred the other day to some Preferred shares paying over 6.5% and up. For example BMO PrC - 6.49%; BCE PrC 7.94% and CM PrP at 7.24%.
As a preferred share gets its dividend before the common I would think they are even more secure than the Common.
Your comments please.
Thank you

Q: I have $20,000 to deploy in today's market. Should I do this at $500 a month, $1,000 a month or some other amount and time frame. The complete amount is ready to go. I am a 73 year old retired value investor with a good pension who enjoys dividends with a ten year + time frame. I will be investing in what I already have.
Thank you
Stanley

Q: What is your view of where the Canadian dollar is headed from here. Would you recommend using a hedge at this time? Thanks

Q: I just asked about a yield portfolio to replace income from my newspaper pension and would appreciate guidance about buying.
I.E. each month for 4 months or would you shorten or lengthen the buy period.

Q: I know already this will be the most naive of questions to anyone with a business background -- but how in the world can oil trade at a negative value? I can understand the notion that "one has too much" and that one has so much that you're actually willing to PAY someone to take it away ... but ... really? How does this happen? What does this mean in the oil world? How can an industry continue to function? If this has been addressed elsewhere, I'd appreciate if you could just provide a link, saving you the grief of answering it twice. Is there any point in getting/staying in oil for the foreseeable future -- other than those who are comfortable with more advanced trading techniques, of which I am not.

Q: Would that be an impact on non-energy stock price as the oil price went negative ? What are the possible scenarios ? Would that drive down other stock price as well ?
Thanks for your expert opinion.

Q: In one reply you said inflation could be good for R/E. Isn't the following info copied from a Vancouver Sun article the negative?
"In steps that dwarf those taken during the global financial crisis, the federal housing agency and the Bank of Canada are ready to purchase billions of dollars worth of mortgages and mortgage-backed securities to backstop the market, while lawmakers passed a historic wage bill to stem job losses."
I would really appreciate insight and/or an explanation of what the statement means in lay terms.

Q: Hi folks
I'm interested in learning how to buy puts. Can you stear me in the right direction. ..websites or courses or books? Have you heard of Theta Trading group? They offer a course for $1300.00.
Much thanks

Q: Price of Oil
What happens on the futures market if one want to buy/sell an option when the price is negative?

Q: I notice that last friday the TSX closed at 14360 and on the end of 2018 it closed at 14323 relatively unchanged over 16.5 months
Out of curiosity I checked my portfolio results for the the above period and was surprised to see that if generated a return of 21.5 %, as a result of picks from your three portfolios
Looking forward to renewing my subscription.

Q: I was involved in the Tech crash, the Financial crash and now the the Covid crash. I learned to have good quality stocks, be patient, and the stock market will be higher after this ends than before this crisis started - believe in capitalism. I also would like to thank you and your team for giving investors sound, well thought out and realistic advice. Give knowledge to others that you would give yourself and use knowledge NOT emotion. Take care and stay healthy.
Clayton

Q: I'm hoping you can help me, as I'm struggling to determine where to deploy cash right now.

I've been following your advise to not try and time the bottom, and have been adding to positions every 2 weeks - starting initially with tech stocks that have done well for me over the past 3 years like SHOP, KXS, and CSU.

Now most of my tech stocks have bounced back to record highs, so I'm not sure what to do next.

Should I add to stocks that remain down a lot, but whose business prospects are now more challenging for the foreseeable future (ie. CAE, DOO, MG, LSPD, AW.UN)? Or should I invest in companies that are down a little, but have not performed well for me in the past, but which I continue to hold for diversification (ie. BNS, GUD, PBH, SIS, CCL.B, SJ)?

I have a 25 year time frame, with a higher risk tolerance.

Q: I’d like to understand if and how the big hedge funds and large investors play the overnight DOW Futures to set up Actual DOW to open at a certain point so they can take advantage during EST trading hours. I understand DOW Futures is not as liquid as the Actual DOW and hence it’s possible to make DOW futures swing more with a relatively smaller amount of funds, compared to what it would take to move the Actual DOW as much.

For instance, is it a common strategy for such investors to ramp up overnight DOW Futures buying certain stocks, so those stocks open up at a certain high point in Actual DOW, which they sell in the Actual DOW to make a profit. Is this why Actual DOW may open high or low, following the DOW Futures, and then go the other way - especially in chaotic times like nowadays.

In Forex, I know that USD follows DOW... and there is a theory that forex traders manipulate overnight to set up a certain way, so they hedge positions on the forex side during EST trading hours to make a profit in forex. Given the 100 times leverage in forex trading; setting up DOW Futures a certain way can be very profitable for forex trades in EST hours. I am guessing such forex traders would also have stock positions that they would managed in Actual and Futures DOW.

To complicate further; I understand there is a relationship between DOW, Gold, Oil, USD which drives each other - at any given point in time - depending on which is the dominant derivative under given market conditions, technicals and fundamentals, driven by overall greed vs fear barometer in the market.

I understand that those who closely follow the long and short term technicals and fundamentals of... key stocks that drives DOW along... and follow day to day relationships across DOW, Gold, Oil, USD... and have deep pockets... can fairly predict/drive the DOW Open and hedge themselves up nicely for profiting during EST trading hours. The options market also plays a role in this.

I may not have phrased my question most eloquently and may have basic knowledge gaps in my understanding of how DOW Futures works. I am curious to learn, hence reaching out for guidance. Appreciate any guidance you can provide on this.

Q: I have about $500000 in cash from the sale of securities and would like to
put into a very safe vehicle for several months.Can you sugggest something.
Thanks Phil.