Investment Q&A

Q: I am curious as to what would happen if we get to negative interest rates here in Canada,could you give me an example how this would work with mortgages and saving accounts in banks if we get to that ... thanks

Q: The direction of Corporate profits is relevant to investment strategy. I am finding an annoying number of contradictory statements on this matter in the financial press. Case in point: in Saturday's G&M Report on Business, the Chief Investment Strategist for BMO Nesbitt Burns says "However, earnings have been continually beating upwardly revised expectations and are now up more than 8 per cent year-over-year in the second quarter." In the same article, the Managing Director of Guardian Capital says "....there are clear signs of the global economy slowing and corporate earnings growth trends continue to decline markedly." Seems to me this is a matter of fact not opinion. Can you tell me if corporate profits are going up or down? Thanks..

Q: When a PUT for WEED expires on a certain date the proceeds are deposited in my brokerage account. If it's uncovered (i.e. I don't own any WEED shares) what happens concerning the purchase of the shares to "cover" the PUT expiry? Is it up to the individual (me) or the brokerage firm to initiate the transaction?

Q: The company is proposing a share consolidation of up to 10 pre-consolidation common for each 1 . .How would this benefit me as a shareholder or company.

Q: I am looking at the circular regarding the Dutch auction share buyback proposal. Is this !) just a necessary regulatory informing all shareholders move to solidify controlling shareholders positions and 2) what should the average investor ponder doing if anything?

Q: If you are focusing on yield (which I need to more, not getting any younger), approximately how much of an upward target would you have to adjust for a non Canadian yield player?

So to simplify, if I was targeting 4% yield canadian stocks what would I need to target yield on a non Canada equity roughly?

Thanks
Mark

Q: Although the data shows that staying invested in low cost index funds over the long term is the way to go, why is it that pretty well ALL of the financial media just guess and predict all day long about which way the markets are going, or when the next recession is going to hit? Same for interest rates, if they're going up or down, by how much and when.

On any given day you'll hear completely opposite opinions. Some will say you should buy because stocks are poised for a rally, while others tell you to get out because a massive 2008 like correction is coming before the ned of the year!

Since timing the markets has been proven to be impossible why is it that's all you hear from the financial media? They're SO irresponsible and dangerous and create a massive amount of anxiety. Your thoughts?

Q: I understand an earnings estimate is an analyst(s) estimate for a company's future quarterly or annual earnings per share. How important is looking forward (ex. 2 yr guidance)? How do analyst(s) derive future earning estimates? Is there any input from the firm itself? Is there analyst bias? Which would you say takes a higher priority... EPS expectations or ROIC past performance when I'm deciding on a investment in a company? Is TD webbroker's "EPS Consensus Expectations" a reliable / reasonable source of information?

Q: Hi Peter. When should an investor buy non-voting shares instead of voting shares in a company? Say Corby. The dividend is a little higher on the non-voting shares. Is this typical?
Thanks

Q: Sorting stocks by trading volume, as asked by Rob:
https://www.barchart.com/ca/stocks/most-active/daily-volume-leaders?viewName=main

Q: Do you know of an app or program that could be used to screen on the basis of volume for stocks, especially Canadian ones. I am not a day trader but am looking to start tracking a few stocks that show unusually high volume without necessarily an accompanying increase in price. Thanks.

Q: Greetings 5i,

Trump retaliates in trade war with orders for American companies to "immediatly start looking for alternatives to China".

Where, what industries or companies in Canada, would you speculate there to be rising opportunities as a result?

Any additional thought would be welcome.

Cheers!

Q: For those who enjoy podcasts there is an excellent one on NPR How I Built This dated August 4. My wife and I listened to it on a long car drive and said she finally understands it.

Q: What does NR stand for in the stock rating Growth Portfolio list?
Thank you,

Q: Bravo Peter for your courageous and successful swim !

Is it too late to contribute to the cause this year ? How do I go about it ?

Thanks,

Jacques,
Île-des-Soeurs

Q: Hello 5i Team

Further to questions on parking cash, all the discount brokerages offer "High Interest Savings Account" mutual funds which are CDIC insured deposit accounts for the various subsidiaries of the bank.
Each of these is insured to $100k under CDIC, therefore you are able to segregate $400k under CDIC insurance in one brokerage account.
I am most familiar with RBC Direct Investing and TD Direct Investing, each offer 4 separate subsidiary companies with CDIC coverage. Other discount brokerages may only offer 1 option. A list is available on-line at:
https://www.finiki.org/wiki/High-interest_savings_account
The benefit of using these in your brokerage account are having cash available for other security purchases and the value is included for calculating available margin (loan value). The interest is paid monthly and can be reinvested automatically.
Thanks

Q: Not a question..just a comment. Congratulations Peter on your BIG SWIM. You are a brave warrior to battle those waves to help kids. I look forward to donating to your next challenge as well. Kudos.

Q: Along the lines of thinking one or two big winners can make up for a lot of lower percentage gains in a portfolio, I have let a couple stocks run well past 5% of my total stock allocation. I realize any stock can get hit hard quickly and understand the risk I am taking. My employment takes me away from watching or being able to trade a security for up to 5 days at a time. In this situation would you use stop loss, if so a thought on the percentage drop to set it at and does the size of company effect the number. SHOP, LSPD, PEO are a few of my considerable overweight's.

Q: Follow-up to Shirley's question about high interest savings accounts, best rates and Manitoba locales. I use rate hub to get best rates. Location only enters the picture if you are investing more than $100k. Manitoba offers unlimited coverage where elsewhere is covered by CDIC $100k. Once you select the institution you want to deal with, call them to get details on setting up an account and to get comfortable with their operation. Manitoba credit unions generally have regular office hours customer service (no weekends).

Q: Due to extraordinary volatility, I have reduced above stocks to minor positions and have looked at healthcare stocks. Not sure, whether this approach is realistic. Technology seems still to be surging after setbacks. Your assessment is appreciated.
Thank you, Team!