Investment Q&A

Q: RE: Bank of Canada announcement about the secondary market purchases of Government of Canada securities.

What's your opinion about this?

"The effective start date is 1 April 2020. Program details are as follows:

Purchases will begin with a minimum of $5 billion per week across the yield curve. The program will be adjusted as conditions warrant but will continue until the economic recovery is well underway.
Operations will be conducted daily.
The operations will be cash purchases conducted via reverse auctions.
Following the launch of this program, the Bank will discontinue the Government’s repurchase operations (both cash and switch buybacks) and cash management bond buyback operations done as fiscal agent. The Bank`s secondary market purchases will provide significant support to the liquidity and efficiency of the government bond market, reducing the need for these fiscal agent operations."

Q: Good Evening
On the CDIC website it is stated that an individual is covered for up to $100,000 on the cash account of a CDIC member as well for an additional $100,000 for a TFSA and another $100,000 in a RRSP/RRIF acct. for cash held.

Are the TFSA and RRIF accounts covered if they are registered with a discount broker associated with one of the major Canadian banks?
Thanks

Q: How do I access this video? Searched YouTube. Video is 'Private' and inaccessible.

Thanks

Q: Thank you for Portfolio Analytics. I have found it a quite helpful. Last year it was a very timely wake up call for me to make adjustments to the portfolio and allow for higher fixed income exposure and better geographical exposure. Thanks again in your guidelines

Q: Some of my holdings like BEP.UN has become more than 5% total weight. Would it best to trim and sell some in this environment , and add to those that have a very small weight due to the price coming down so much? They are stocks and ETF that 5i recommend.

Thanks

Q: As North American jurisdictions begin, finally, to transition to halfway-decent testing regimes, will investors begin to discount the economic cost of social distancing? Yes, the pandemic will continue to grow, and yes, there seems to be excessive optimism in the market's response to government interventions, but are we now past the point where events or results could cause investors to panic as they did last week? I've been trying not to buy into what smells like a bear market rally but now I wonder if the cost of recession has already been baked-in.

Q: We are all hearing this is a once and lifetime (maybe twice ) to buy stocks quite cheap. Would you advocate using some margin in this environment to torque the portfolio or is it still too risky?

Q: Is it possible to buy stock in a TFSA without any cash in the portfolio ? Buy stock X and then sell stock Y to cover ?

Q: One of my holdings of call options represents all of the contracts at the same strike price, expiry, etc., shown as open interest. It's easily understandable how there can be an offer to buy displayed, but how is
the price for an offer to sell (which is also shown) determined since
there is no sell order from me outstanding?
Thank you in advance.

Q: I have a diversified US dollar portfolio, hold US stocks, and with the increasing in the US$, I have a 40% FX gain. I want to continue to hold the US stocks but also lock in the FX gain. To lock it in, I take it that a hedge would be required. Please suggest ways I could do this, including the "instruments". I am asking you this because I assume it is a good idea, aka action to take.
With the COVID-19 related decline in the stock market, I now clearly understanding the reasons and impact of diversifying in other currencies other than just Canadian $s...thanks for hammer it home to me.......Tom

Q: Do you think we've seen the bottom now that the USA is close to a stimulus deal (as of writing today). I was wondering whether that stimulus announcement will be the last bit of good news for awhile. I'm trying to decide whether to wait for further lows which seems to be what everyone was calling for or whether to go in with a part position now. Your thoughts today on the stimulus deal and what may be to come would be appreciated. Thank you.

Q: Hi 5iResearch team,
Would you please shed some lights on why utility stocks (aqn, bb.un, telus, fortis, etc.) are getting hammered.
Cheers,

Q: A few questions have been asked about covered call products and I know that the bounce back will not be as high as a Plain Vanilla ETF. The question remains how much are you actually losing out on? Would the fund just not repurchase right away when called out so when things normalize, you may be out 5 to 10 percent as a guess? I am just hoping that the loss is not that bad

Q: Hi Guys,
I wouldn't pretend to understand economics and I can hardly read a company financial statement, that's why I subscribe to your service for advice on that sort of stuff. My question is not stock specific but general in nature about all the money governments are throwing at the current problem. Aren't Canada and the US both carrying huge national debts and yearly budget deficits? Where does all the billions of dollars both countries are throwing at the current situation come from? I'm sure there's no pile of money somewhere that they are drawing from unless it's in China. Can you explain this to me in layman's terms. Is it as simple as printing more money?
Regards,
Charlie

Q: On March 9th a special report was shared with 5i opinions on ten potential stocks to consider in the near future. That seems like eons ago considering all that has transpired. Would the advice on these stock picks remain the same today or would there be changes made with the selections? Thanks Dennis

Q: Assuming a youngish investor with a high risk tolerance and no cash flow/liquidity concerns, would it make sense to consider dipping into some "reserve" ammunition now and over the next few months in the form of LOC's/margin? Thinking being, from these levels, over the next 5 years imaging a 7% total return seems highly probable. With credit available below that rate, along with the ability to deduct the interest expenses, profitability seems likely. If this is a tactic you could even begin to condone, would you have any guidance such as a maximum amount of credit compared to invested capital to deploy? Also, assuming HELOC is not an option, any tips on finding the best rates and sources of credit?

Q: Hello,

I’ve been reading a lot on P/E ratios after your special report. From what I can gather once a company share is priced at 12 or lower P/E that typically this is a good buy for a long term hold. Is this typically accurate in your opinion?

Also, can you provide a site, which we would have access to, that provides the most accurate/up-to-date P/E ratios.

TIA

Q: Can you suggest any place where I can monitor for canadian companies suspending or reducing their dividends? Thanks very much.

Q: I am a 73 man relying largely on my RRSP for income and it is being eroded very quickly. I have no bonds or other fixed income investments preferring instead preferably dividend paying equity’s. know little about bonds and other fixed income products and would appreciate any advice you have on specific investments I should consider.

Thank you as always for your advice.

Don

Q: Hi 5i,

We own NVDA in our RRSP on the USD side and want to increase our stake by 2%. We would then have a 4% position. We are contemplating the benefits to sell this position on the US side of our RRSP and buy it in our TFSA (now that we have room) or purchase it in CDN funds to benefit if the CDN dollar drops.

Do you have any recommendations?

Debbie and Jerry