Investment Q&A

Q: In your previous incarnation as a chief investment officer for a large investment house. What was your plan for December and January each year.

Clayton

Q: In regard to the question by James regarding a book on financial management in retirement, he might find the book "Retirement Income for Life" by Fred Vettese helpful. Fred Vettese is an actuary and his book is full of useful information about decumulation of RRSP's and other savings accounts to provide retirement income.

Q: Hi Team
There was article on BNN “10 stock that help define the Decade” In your opinion is there any stocks or theme that will define the next decade.
Thank you

Q: Thanks for your reply. I was reading that in such a takeover situation the prefs could end up trading OTC only and hence drop in value from current. Don't understand how or why. Do you think this is a risk?

Q: What is the cost of the ETF news letter for a year?
Thanks
Dave

Q: If it's not too late, these books don't address all Jame's questions but are excellent books:

Retirement Income for Life, Frederick Vettesse
and
Your Retirement Income Blueprint Daryl Diamond

Cheers,
Michael

Q: URGENT: Hello Peter. I hope that this question is timely enough for you to address today or tomorrow, because I need something else for my wife's Christmas stocking! My wife has just retired, will have some significant money coming in soon from the sale of a property, and has a developing interest in investing and the markets. I'm hoping to find a good, 'reader-friendly' investing book to give her, but most (e.g., Wealthy Barber) are geared to lifelong investing habits and not for retirement. I'm hoping to find one that also focuses on things like: investing from a retiree's perspective, annuities, strategic use of RRIFs, how to best draw down from different types of accounts to minimize tax, travel and related issues (insurance; retaining OHIP or non-residency issues, etc), charitable giving, insurance for unexpected health issues, etc. Are you aware of any that you might recommend? Thanks!

Q: Could I have your view on the CAD vs USD.

Q: If considering buying a stock such as CSU, which is obviously very expensive, if due to portfolio sizing etc, the number of shares you should purchase is say 5-10, is that a sign that you should be investing in ETF rather than shares, due to the commission per share etc, or just consider the underlying $ value of the investment and no worries.

Q: This is a question about stop loss as a tool.
When you look at bid ask just before the open sometimes you see a bid way below the last trade the day before. Sometimes the last trade the day before may be 90 and the morning premarket bid ask 70 / 91
If I had a 85 stop loss , even though the bid is unrealistic would I be sold out at 85
Thanks
And best of the holiday season to all of 5i and your family

Q: Hi 5i team,

Over the past several years, I moved a lot of funds to the U.S. for the growth opportunities. The CDN dollar has been range-bound in the 74-76 cent level but is now breaching 76 cents. I am inclined to think it won’t push much higher, as the FED is on hold and the recent U.S. job report was a lot stronger than in Canada. But you never know, so I am considering some hedging activity. I don’t really want to move money back to Canada. Is there a large cap S&P type ETF product that would hedge the CDN $ in my U.S. accounts?

As an alternative, as I am not really an ETF guy, is there an option to buy/add to some Canadian domiciled, inter-listed companies in my U.S. accounts, such as OTEX, MEOH, FTS, TD, others, assuming they fit my portfolio? If the stocks do well, and the CDN $ rises, then my U.S. priced stock will have to rise proportionately to keep pace with the CDN $ value. Does that option make sense or is it all a wash in the end?
Any other ideas for hedging a large U.S. exposure?

Thanks again for your insight, and for a great year in U.S. stocks, even though it is not your focus area.
Dave

Q: I would ask for some clarification re your response to my question re a custodial issue . Brokers note that "These securities are held in segregation and cannot be used in the conduct of our business " . Given that the securities are registered in the broker's name , how does " held in segregation " protect the investor ( the beneficial owner ) from a loss , as a direct result of insolvency of the broker , it's parent or affiliate ? Again , I refer only to a loss which exceeds the limited CIPF coverage . My question relates to a loss , not the probability of a loss . Also would you shed some light on the basics involved in registering shareholdings ? Thanks .

Q: When will the buying of stocks begin for 2020. Most of the stocks that I hold have traded below their averages for more than two weeks.
Appreciate your service.
Clayton

Q: The ALARIS stock is classified as Industrial in Portfolio Tracking. Shouldn't it be classified as financial since providing alternative financing to various companies is its sole business.

Q: Hi 5i team,

I sold some stocks in US market and wondering which currency should be holding. Could you please provide your outlook on the USD and CAD for next year or two?

Thank you,

Q: Unless our shareholdings are registered , the brokerage company is usually the registered legal owner of the shares . We are the unregistered beneficial owner . The CIPF coverage is limited essentially to $1m per registered account and $1m per non registered account . That and CDIC is the only protection in the event of a loss as a direct result of a brokerage insolvency issue . This is about such a loss , not the probability of such a loss . This is not about the quality of the risk management systems in place . High net worth investors are not protected against such a loss . Dividing the portfolio among several brokerages is one awkward alternative . Registering the shares via the transfer agent and registrar for each holding would address the issue . Is that practicable for an investor ( not a trader ) with ( 25) holdings ? The industry is not transparent regarding this security custodial potentially huge issue for high net worth investors in Canadian capital markets . Confidence may be misplaced .

Q: After Hours Trading Question: Perhaps you could educate me with respect to After Hours Trading. I have seen many examples where there have been trades after the close that have radically altered the 4pm closing price in one direction or another. However, in many cases where this occurs in the absence of news, it is being done with as little as one share changing hands. What would be someone's motivation in leaving investors with the impression that their shares have exploded or imploded after hours, when this is clearly not the case?

Q: I saw in a recent question there is a way to "Ledger over" CAD to USD to save on FOREX. Can you explain the steps to do this? I'm with TD.

Thank you

Q: Morning gents. Can you please explain or provide detail on why one would purchase a US listed stock (eg: NTR, BAM, WCN) vs. the same Canadian listed stock. I assume that payment of US currency dividends is one reason but are there others? Where best to hold US listed stocks from a tax perspective (registered or cash account)? Truly a great service. Thx. Steve

Q: Greetings,

I am getting close to retirement so starting to shift my portfolio to get a better balance of income and growth. Is now the time to start looking at preferred shares of companies that appear to be fully priced. For example, BAM. A appears expensive but the preferreds esp the perpetuals, BAM.PR.N appear cheap on a relative basis. I already own BAM.A but wanting to keep for the growth but want to add the Preferred to get more income. Does this seem reasonable given where the preferreds are currently trading.

thanks as always for your advise.
k