Investment Q&A

Q: Hi I am 40 years old. I currently pay into a pension and am scheduled to retire in 2040. I have mostly been growth focused throughout my entire portfolio and am wondering when I should begin to consider a more balanced style. Ie income vs growth. Just to limit any risks. Thanks for any advice

Please list your top 5 non-tech names in order? Us or Cnd

Please list your top 5 tech names in order? Us or Cnd


Timeframe is 5-10 years unless you feel it should be shorter based on my retirement time. Thanks and please deduct any credits accordingly

Nick

Q: Dear Peter et al:

This is a general and "conceptual" question and I believe this may apply to many of the "grandparents" who are subscribers of 5i.

We would like to give some money to help our grand kids. We contribute for RESPs.

Reading the literature, it seems one can set up an "in kind Trust" that can grow seamlessly till they reach 18 years old and it can be rolled over to them and as their income is still low, the taxes are low.
(I am paraphrasing the articles here.)

However, recently I was told that taking a Permanent Insurance for kids (Universal or Participating Whole Life?) is another option one may want to consider. As the grandchildren are still young , the premiums are low ..and it gives them not only life insurance(a dreadful thought) but gives them the ability to cash in their policy for an attractive lump sum amount that can be used for their education (post secondary) or whatever they wish to do. I have never heard or read about this option before and wonder if you have any opinions. If you can forward some articles comparing these two strategies, In trust account VS Permanent Life policy, I would appreciate it.

BTW, I have reviewed the articles by Colin Ritchie in Canadian Money Saver. But this specific comparison isn't there. Colin's articles are more for adults who may be interested in Estate planning or augmenting retirement income etc.,

Thank you.

Q: Would like your thoughts on sell discipline- specifically when do you cut bait on chronic under performers? Thinking BNS, PBH, NTR, OTEX.

Q: I was wondering if there were any good AI, like ChatGPT, that we can use to analyze official financial statement releases from companies. I tried on ChatGPT, and it seems to use some kind of “tools”. I wonder if the results I would get come directly from the financial statements themselves, or from commentary on them.

Any guidance on this would be great!

Q: I am wondering about protecting myself from downward moves of NVDA price based on earnings results and news next week. My strategy so far is limited selling as the stock has ramped up beyond any "normal" I have seen.
Of course the dichotomy is:
- Fear that the bubble / AI hype will fizzle and my paper gains never materialize, and;
- Trepidation that I will regret selling another single share if NVDA's future stays bright.

So would options be a way to play this or is this quite expensive? It appears that ATM puts are $7.00 for AUG30. A full 5% premium to protect downside. Crazy? Other Thoughts? Thanks as always - you guys are amazing.

Q: Previous question included 'Has 5i thought of providing a regular update of stocks that were once favoured but no longer make the grade'. Your response mentioned MG and OTEX and a comment about not reacting to a single quarterly report. This is fair. But will 5i consider reporting on companies that, over time, were once highly recommended but no longer are on the list? Your customers rely and use these recommended lists - they are rated high. Why wouldn't 5i alert customers when a company no longer warrants the recommendation? If no, then maybe you should stop providing the recommended lists and refer customers to your portfolios that you do keep current.

Q: At least one of the Canadian Banks offers Canadian Depositary Receipts (CDRs) for selected large cap US $ stocks (e.g. Nvidia). They enable you to buy "fractional shares" plus the CDRs have an embedded option to hedge/insure against US$/Cdn$ currency fluctuations. Do you feel it is better to buy/own US $ stocks directly or to own/buy them through CDRs? Thanks in advance for your answer and keep up the really good work, guys!

Q: Hi,
Enjoyed Chris and Zach's podcast. How come they chose PNG/TSU as their small caps and not some of your usual favourites like PRL or PAY . Also I am somewhat surprised that whilst PNG/TSU do get "airtime" in your Q&As, they don't make it in your small caps short list. You must have some rationale. Somewhat puzzled, that's all.

Q: Can you list the pros and cons of buying US stocks as a Canadian CDR?

Q: Thank you for the Monday morning alert. I took a chance that you would have devoted a bit of holiday time to explain the situation in easier language than CNBC was describing.
When stocks report good quarters they spike up and then 90% of the time they drift back down to the trend line. This happens whether the market has been in an uptick or a downtick. I guess I should be like everyone else and when this happens, get out of all or a big part of my positions. What would be your advice on this? Thanks so much.

Q: I came across below AI site and I need your input before creating an account. Can you please give me your input.

https://portfoliopilot.com/

Thanks for the great service

Q: Sincere thanks for posting the market update yesterday. You didn't have to do that but it was very much appreciated. One comment you made I did not understand. "Now is not the time to be a here". Many thanks.

Q: Is this worthwhile ( Canadian at about $22or should one just buy on that NYSE?

Q: Hello,

I looked at the presenters for the money show for Sept. 2024.

I saw pretty women and men flogging their stuff.

As a value investor, is it worth my time (I'm 65 and will be dead in 10 years) to attend this event so I can make better decisions now, so my wife can be more financially secure when I am no longer around?
Assuming we have the same ruling party beyond 2025.
I don't mean to be blunt - but facts are facts.
BTW - my portfolio has made more ($55k) in the past month than in the past 4 yrs. This is directly attributable to my knowledge gained from this 5i Q&A blog.

Thank you and keep up the good work.

Q: Is it a good idea to have a 7% trailing stop loss, on portfolio stocks now? Reasons? Thanks

Q: Hello, Two months ago, I wrote to inquire about why the online stock return calculator on Stock Channel Canada was no longer working and hoped you could refer me to a new one that I might not know about. Now, after a few months, I have found that the site is back up and running. I just wanted to let you know. Thank you for your years of wonderful work.

Thank you.

Q: I find the "Dividend Updates" link at the bottom of the home page to be very useful. On many occasions it was the only place I learned one or more of my holdings had increased its dividend.

In a similar vein, it would be useful to learn that a company had initiated a share buy-back program - positive news for shareholders. Is it possible to include another link on your home page that points to some summary or repository of share buy-back information, NCIBs, etc.? Also useful would be information indicating if the company is actually buying back shares, how many and some measure of progress on the announced buy-back target.

Thank you. IslandJohn

Q: Hello 5i Team

Is it possible to provide a collation / compendium posted on 5i Research of all the articles Peter has written in the Financial Post? Or is 5i prohibited by Post Media because of copyright laws?

It is not user friendly to search the internet to read all of the articles.

This would be a good job for a summer / co-op student if such a person exists at 5i Research.

Thanks in advance.

Q: Hi Peter: Following up with question/response re RHT earlier today. After talking to 3 different TD reps, I was told that I cannot sell RHT or RHQTF because I am Canadian and the shares that are being traded OTC are being bought & sold by Americans only. If you think this wrong, I'd like to know.

Publish at your discretion.

Q: I enjoy reading Howard Marks of Oaktree ; so much common sense dealing with investing.
Do you have favourite authors that you would suggest having themes on investing ?
Thanks . Derek