Investment Q&A

Q: Interest rates (as reflected in the 10 year U.S. T-bond) are up again today.
Canadian term deposit rates are at the same time starting to make me feel all pink and fuzzy. Over the last while I've started to build a ladder of rate reset preferred shares (5 yr with a floor) mixed with term deposits of varying durations, and at the same time moving slowly out of common stocks except for special situations. Good idea or too short-sighted?
(Full disclosure, I am very much a senior). Thank you.

Q: Will Peter's fireside chat with Gene Simmons at the Moneyshow be archived somewhere or, if not, the subject of a blog or Financial Post article?

Q: There is an article in the Globe this morning about corporate bonds to be traded on the TSX ? Can you please give us your thoughts about this new concept. Can we expect being able to trade corporate bonds on the TSX in the near future ? Thank you .

Q: There seems to be some confusion regarding the Brookfield offer to Enercare. Here’s is my experience. The vote for the offer is due September 20th before the meeting four days later.
On the other hand, the instruction for choosing the option 1 (having BIP.UN shares for ECI) or option 2 (the default, receiving cash) had to be given to TD Waterhouse before September 14th at 11h59am. Like some customers I received the notice dated on September 6th just this Monday. According to Kingsdale Advisors all instructions should have been registered by them this Monday September 17th at 5pm.
So according to my experience, TD Waterhouse did a lousy job of making sure their customers receive the timely information. Moreover, on Monday morning, I had to wait two hours on the phone before talking to a TD agent regarding this transaction.
I hope this helps clarifying some of the confusion. May be someone should open a forum for discussing possible recourses against brokers in those cases because this it is a recurring theme, in my experience.

Q: After the 2008 recession, which stocks/commodities made the quickest comeback. Also, which market US or Canada?

Q: I have been a long term Investor of the Mkt . I have my own rules which work o.k for
ME . I have been approached by a neighbour`s & friend son asking for advice re the Market .
I don't want to give or show him ALL of my bad habits. I wonder if you could suggest a couple of books to introduce this lad to the Mkt.He is about 22 & has some university under his belt. I always appreciate your wise advice
Thanks ----- don

Q: My direct investing account shows a time weighted and a personal gain. Can you explain the difference in terms a financial luddite can understand? Many thanks for this extremely useful and reassuring site.

Q: Hi,
I noticed a question about the correct way to draw trend lines and can offer an excellent site called Stockcharts.com to answer this question in detail. The site allows you to use an interactive tool to position a trend line on a price chart, as well as an extensive 'chart school' area that should prove helpful in this instance.
As always, we appreciate all your answers to our questions - so in the rare instance we might be able to offer a suggestion, we do so with great delight.
Dawn

Q: 1) Where can I find a stock screen for Cash to Market Cap? I like companies with high cash on their balance sheet and a cash to market cap ratio of 10% or better.
2) What is the correct way to draw an up trend line on a daily, weekly or monthly chart. Is it the closing price points or lowest price points?
3) What is the correct way to draw a resistance line on a daily, weekly or monthly chart. Is it the closing price points or highest price points?

Q: Hi, I've been holding some cash for a few months in my TFSA. I'm 52, growth oriented investor. I have TV as the sole investment at the moment in this account. Can you suggest a strategy for building out the account with stocks? How should the investments differ from my rsp? Thanks.

Q: I'm looking forward to the Toronto World Money show this Friday and Saturday. Does the staff of 5i have some speaking engagements or meetings to attend this year? Always a great show by Kim and her staff and very well attended.

Q: Hi, Guys
Just a general question on allocations and percentage weighting in portfolios.
When you're dealing with multtiple accounts (RRSP,SPRRSP, RESP, Taxable Investment Accts, TSFA's), which I am, what is the concensus on the following:
1) Do you count all accounts together when weighing percentages, do you separate taxable from RRSP's, or do you treat each account separately?
2) Wouldn't you treat percentage weightings differently in the various accounts(RRSP vs Taxable)?
Cheers,
Chris

Q: 5iR mentions from time to time about buying
a stock that is showing good momentum.
My question is how would I know if a stock
has good momentum before buying, aka how would I know one,
if I saw one? .........thanks....Tom

Q: Hello 5I team
Would it be a good idea to short HMMJ or a Canadian Healthcare ETF? How much of the Canadian health care sector is Marijuana. Would there be a catalyst or a cue you use to determine when and if this is a good idea? Also how might you structure such a call? I have not shorted any equity so I am rather green on this. Also I am looking forward to the Moneyshow. Thanks for all the work you do to make this event a success and all the endless questions here. Jeremy

Q: Your answer today on leveraged EFTs using risky options that added a lot of risk over time concluding avoidance.
A few days ago you responded to a ? about HXT HXH HXS that used Swaps to convert Divs to ROCs that implied these ETFs were fine to hold.
Are swaps a different risk asset than derivatives. What is swapped for what.

Ernie

Q: This is addition to the question on Kl. Where can I find short internet on stocks? Thanks

Q: What are your thoughts on annuities for someone who is going into retirement?
Thanks. Terry

Q: Hey guys. My question is about building a great Canadian portfolio. I have done well for over 5 years now using screeners and small/micro cap stocks but this causes high commissions, volatility, and confidence issues. I have started to switch into your Balanced portfolio and stocks from your coverage list. You guys have an amazing list of stocks to choose from and an amazing balanced portfolio. Ty for that. I have been a big fan of Peter for many many years now and would like to know some tips or core rules he uses to find good stocks. Also a tip on how to adjust the industry weights in the portfolio. I know a book can be written on this subject and I have read William O'Neil's book and Graham's books but I find their strategies are to volatile or lag the Canadian market.
Thank you so much!

Q: Hi, Can you explain and provide an example of how the Management fee is calculated and how it affects me as a purchaser of an ETF (how much does the management fee cost me?).

Q: Can you explain a leveraged ETF? If it is a leveraged Dow ETF, Does it hold the 30 DOW companies? or is it doing something different. I see some that attempt to achieve 2x or 3x the Dow Jones Industrial average. From a risk perspective, is it safe to say the at the would come with 2x or 3x the risk as well?