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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi Peter,
Is a reverse mortgage a good idea for someone who is 65 years old+, and what should one know before he/she goes ahead with one.
Thanks!
Read Answer Asked by Terry on August 12, 2019
Q: I read with great concern in this weekend's National Post, David Rosenberg's article entitled "10 Reasons to take risk off the table right now". He makes ten legitimate reasons to do so. I would appreciate 5I's opinion of the article and his supporting logic. My high risk equities are WEF, NFI, TSGI, MX, COV and VET.
Carl.
Read Answer Asked by Carl on August 12, 2019
Q: My question is about US/Cdn exchange rates. If I go to my bank as I understand it, I pay 2.5% on top of the exchange rate when both buying or selling U.S. dollars (I do pay less than 2.5% on my online brokerage account, though). This 2.5% fee results in a different final exchange rate depending on whether I am buying or selling U.S. dollars.

So my first question is, in an etf like VGG which is denominated in Cdn dollars but invests in U.S equities, when they apply the exchange rate to show the unit value in CDN does it include this 2.5% fee? Or is this 2.5% fee not applied?

My next question is related to the first one. You recently answered a question describing an (apparently) cheaper way to convert dollars between US and Can. As I understood it, if you want to convert USD to CDN, buy a non-volatile Canadian stock that trades on a US exchange with your USD, then phone your online broker and ask them to "journal" the stock to the Canadian exchange, and once they do that you can sell it for CDN. So the question is, does this avoid the 2.5% fee? (I would think it must, otherwise why not just go to the bank and change your money.)

Thank you.
Read Answer Asked by William on August 12, 2019
Q: David Rosenberg is once again talking of a doomsday secenario. Whether he is right or wrong, I have a feeling a recession is due and it is all about timing. I know you have previously fielded questions regarding taking a defensive stance for protection against a recession but I am wondering where long trem bonds fit into this story. Is an investment in Long Term Bonds a good strategy in this case and if so, how does one make such an investment and what percentage of a balanced portfolio would you dedicate to long term bonds?
Read Answer Asked by Michael on August 12, 2019
Q: How do you select th 70 companied that you cover?
Read Answer Asked by Carl on August 09, 2019
Q: I hold the above in my TFSA. I treat my TFSA as part of a total portfolio so although each is about 20% of my TFSA, my overall weight for each is 3% in my total portfolio. Needless to say my TFSA has not performed well this year. Each of these companies (Except for ZQQ) seems to have lost significant value this past year. 5i seems to still like these names but I am starting to think that they are going the same path as some previous darlings of 5i. So my question is: with a 5 year outlook, should I continue to be patient or sell any of these and move on.
By the way, I did ask a question last week and voiced my opinion on some comments....never got a reply??
Read Answer Asked by Rudy on August 08, 2019
Q: Hi Peter

You recently wrote an article about investing versus gambling which neatly explained why investing was not gambling. I had no issue with your explanation, but must admit that lately I am concerned that investing is starting to feel more and more like gambling. You just do not know what Trump is going to Tweet or do next. China’s reactions are another issue. I am not confident that Trump fully understands what he is doing. Case in point , his remarks that China is adding all kings of money into the US Treasury due to the tariffs he is imposing. Look at the reactions to his plan to impose further tariffs on China and subsequent devaluation of the Chinese currency. You just do not know what he will do next. But it does look like China is digging in for along term battle. Your comments please. Uncertainty is extremely high now. So why not sell most equity investments and move to the sidelines?
Read Answer Asked by John on August 07, 2019
Q: It appears that this is a trading market as I FIND VERY DIFFICULT to hold for long term when market goes down at a very high speed than when it goes up.How do we convince our self to hold some stocks like SIS,mx and it keeps going down? Do you think I need to read some books to educate myself or do you agree with me,May be buy and hold was right thing to do but not in this time when president's tweet makes the market,Lot of things changed with time may be its time to change buy &hold for long term,If I had no 5i advice I would have lost a lot,I do appreciate your opinion a LOT
Read Answer Asked by Nizar on August 06, 2019
Q: What is meant by 'Charity arrangement' and 'Presidents List' in this news release?
Is this NR positive for shareholders?
Thanks,
KELOWNA, BC, Aug. 1, 2019 /CNW/ - Cantex Mine Development Corp. (the "Corporation" or "Cantex") (TSX-V: CD) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. and Leede Jones Gable Inc. (the "Underwriters") in connection with a "bought deal" private placement of an aggregate of 1,588,000 common shares of the Corporation that will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) ("Flow-Through Shares") for aggregate gross proceeds of C$10 million (the "Offering"). In connection with the Offering; (i) 921,000 Flow-Through Shares will be issued as part of a charity arrangement at an issue price of C$6.52 per Flow-Through Share (the "Charity Issue Price") for gross proceeds of C$6,004,920; and (ii) 667,000 Flow-Through Shares will be issued at C$6.00 per Flow-Through Share (the "FT Issue Price") for gross proceeds of C$4,002,000.

In addition, the Underwriters have been granted an option to sell up to that number of an additional Flow-Through Shares at the Charity Issue Price and/or the FT Issue Price for additional gross proceeds of up to C$2,000,000.

The gross proceeds from the Offering will be used by the Corporation to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Corporation's projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective December 31, 2019.

The Offering is expected to close on or about August 22, 2019 and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional listing approval of the TSX Venture Exchange and the applicable securities regulatory authorities. The Offering is being made by way of private placement in Canada. The securities issued under the Offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the Offering. The Offering is subject to final acceptance of the TSX Venture Exchange.

The Underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the sale of the Flow-Through Shares, payable on Closing to the Underwriters (other than in respect of sales of Flow-Through Shares to those persons on the "Presidents List" on which the fee shall be 3%).
Read Answer Asked by Tim on August 02, 2019
Q: I read comments that go like this..... Trump wants a rate cut so he can play hardball on trade wars......but how do Federal rate interest cuts do this? I'm like walking in the woods on this.......Tom
Read Answer Asked by Tom on August 02, 2019
Q: I am in receipt of a Dutch Auction offer from Encanna with a price range of $4.70-$5.40 USD.
I hold the shares in CDN dollars in my Investorline Account.
1. why would they offer me USD?
2. why do companies do Dutch Auctions?
3. do I incur any risk if I do not respond to the offer?
Read Answer Asked by Paul on August 01, 2019
Q: Gentlemen,
Can please give your thoughts on Columbine Capital Quant Ranking ?
Thanks
Regards
Read Answer Asked by Djamel on July 30, 2019
Q: Hi 5i,
Where do I find the Q&A section? Thank you.
Read Answer Asked by Cole on July 29, 2019
Q: Hi Everyone at 5i! I am in the process of reducing the number of holdings in my US portfolio . I own several related to healthcare. I just recently sold off my JNJ at a profit. I am under water on CAH and WBA. I propose to sell CAH and WBA at a capital loss to offset my gain on JNJ. I intend to keep MDT. Does this seem reasonable to you?. Cheers, Tamara
Read Answer Asked by Tamara on July 29, 2019
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