Investment Q&A

Q: Can you suggest best websites that provide insider selling, buying and holdings. I have visited INK Research, but fairly expensive for subscription. Any others that are more reasonable cost, or best, free!!

Q: In regards to the reply to Terry's post, I'm a prime example of that. With all the uncertainties of Trump, US Gov't debt, NAFTA, Canadian housing & credit card debt, Brexit, etc. I've been expecting a correction/pull back for well over a year now. In the meantime I've held off buying ETFs for the US and Europe markets while watching them run up to record levels.
So here's the worse part. Psychologically I have a real problem buying those ETFs at today’s prices when I know I could have bought them much cheaper even though it looks like the run still has a way to go.

I'm sure I'm not the only one in this boat, so if there is any advice as to how to avoid getting into a trap like this, it would be greatly appreciated. Do you think in times of uncertainty, it is better to add monthly into an ETF rather than one lump sum?

Thanks for any help!

Paul

Q: Hi,

5i talks alot about "momentum" behind stocks. Increasing volume + increasing price = good situation.

Are there one or two indicators you recommend to monitor momentum? I'm thinking of things like the True Strength Index, On Balance Volume, Williams Accumulation/Distribution, etc. I might be way of, but am hoping to use one or two that I can review to assess where an equity might be going.

Thanks,

Cam.

Q: Hi Peter and Team,

Just read your answer to Stuart. We keep a spreadsheet on Google Sheets that automatically "captures" price data from Google Finance, and unfortunately Google Finance doesn't provide Aequitas prices. Any ETFs or stocks listed with Aequitas have to be manually entered. :( Other than that, I suppose that Aequitas is "okay".

Q: Your question subject index seems to have disappeared; ie all questions pertaining to dividend and income stocks, etfs, etc. Please say it ain't so and tell me how I can access it. Thank you.

Q: Hi Peter and Team,

Just read your answer to Stuart. We keep a spreadsheet on Google Sheets that automatically "captures" price data from Google Finance, and unfortunately Google doesn't provide Aequitas prices. Any ETFs or stocks listed with Aequitas have to be manually entered. :( Other than that, I suppose that Aequitas is "okay".

Q: For several years I have used Google Finance as a good starting point to understand a specific company's historical stock price trends, dividends, etc. as well as a means to compare with other stocks. This all changed in November 2017 when Google decided to abandon this excellent site with one that, from my perspective, is essentially useless. The new site also concentrates on US stocks, ETF's, etc. whereas the old site also contained information on Canadian securities. The change has prompted me to look at other sites. The only one I can see which provides something is Microsoft Money. It is somewhat more unwieldy than the old Google FInance but does provide some information. Can you provide some information as to what you would recommend as a replacement for the old, excellent Google Finance? I read that perhaps Morningstar or Yahoo were good alternates but it seems that Morningstar is somewhat restricted. I have not tried Yahoo
Thank you very much

Q: In your model portfolios you hold almost 100% Cdn companies with little allocation to US or International. Can you speak to why when the industry is constantly preaching to diversify outside Canada.
Thanks
Mike

Q: I hold Enb DD 3.19 % bond and IPL 3.776 % bond AND multiple preferred shares from different companies

I will need to liquidate both bonds and preferred shares in next 3 months for home renovation .

1. Am I better off liquidating now or is there any upside to holding on ?
2. some preferreds have capital losts , can they be written off against equity capital gains (assuming I sell some equities as well.) ?

thanks

Ernie

Q: Hello

I have a question on ''ANNUALIZED RETURNS'' definition.


I came upon this website and it has caused me some confusion.
https://www.wealthenabler.in/knowledge-center/financial-freedom-demystified/annualized-returns-vs-cagr/

I was under the impression ''ANNUALIZED RETURNS'' AND "COMPOUND ANNUAL GRowth RATE'' was the same thing but this web site suggests maybe it is not?


In my questrade account under returns it shows ''Annualized'', and I always believed that included ''compounding'' and was not just Overall % Gains / Number of years?


I am hoping you can straighten me out here.

Thank you so much.

Q: Hi 5i, If you use DRIPS do you still have to claim the dividends for tax purposes at the end of the year.
Thanks Dave

Q: This is a general strategy question for younger investors. At what threshold ($-wise) would you recommend switching from an ETF-based strategy to buying individual stocks to build your portfolio?

Thanks guys,
A.B.

Q: Good morning 5i
I can identify with Neil, who wrote about buying bonds at this time and finds them going down and also looking for an alternative. I have no bond allocation, either, and a couple of months ago bough BSV:US, just putting my toe in to test it. Like Neil, I am also down a little, even after the payouts.
So, I have been wondering whether it would be a reasonable strategy to wait this period out. Would it make sense, for instance, to buy something like FLOT in the US in order to do this? If so, is there anything similar in Canada, as well?
thanks

Q: Hello Peter and Team:

As a recent retiree, I am looking for a good book to educate myself on portfolio construction for an income investor. I would appreciate any recommendations.

Thanks

Q: I have not made use of DRIPS in the past but am considering the conversion for some stocks like banks. I have been appreciative of the extra cash for more buying in the past but locking in the dividends may be a better way to go. Thoughts?

Q: Hello 5i team,
S&P Dow Jones Indices and MSCI recently announced revisions to the Global Industry Classification Standard (GICS®) structure for 2018. I think it would make a great topic for a 5i blog. In the meantime, I have a some questions: (1) does this announcement confirms that we should not always follow blindly industrial classification? (2) the classification is not always up to date, especially in developing industries (internet, telecom, media, communication) or when companies are transitioning activities? (3) Investors should allow themselves to split classification 50%/50% for some companies? (4) Could you list some companies that you think are currently "misclassified" by index providers (SHOP communications?) including companies either under coverage or in 5i Research portfolios or that will be reclassified?; (5) Would you agree that this announcement confirms that long term investors should not care that much about short term sector weighting fluctuations (rounding to the closest 5% is good enough) and should focus on selecting the best investments (stocks) whatever the sector, while just avoiding too high sector concentration, instead of doing mandatory diversification among all sectors in less good companies (for exemple recently : energy)? My main point is: many investors will change the composition of their portfolio (trade) following S&P and MSCI decision while their portfolio exposition (economic drivers) will not have change. Reading most 5i Research questions every day, I see many questions about sector allocation. I thought my questions would help some clients. Any other thoughts?
Thank you for your collaboration, Eric

Q: hi guys : at this time' I have zqq and have done very well with this ETF it is hedged to the cdn. dollar . could you explain the differnce between hedged and non hedged and is there an non hedged that would be better ? tanks Gary

Q: When determining geographic allocation of a portfolio, is it more appropriate to categorize a company based on where the majority of they business is transacted rather than where they are domiciled?

For example, is New Flyer better classified as US for geographic allocation purposes since 90% of their revenue currently comes from the US, or BAM.A as international since 90.4% of their assets under management are outside of Canada and spread across the world?

Also along these lines, is it worth the (very small) effort to sub-allocate companies that have meaningful exposure to more than one broad geographic area, e.g. classify approx. 1/2 of BNS as Canadian and 1/2 as emerging markets based on their business operations?

I ask this in the context of your previous comments that a 45%/35%/15%/5% CAD/US/INTL/EM allocation is appropriate for an average Canadian investor. Thanks as always for your sapient and perspicuous advice!

Q: I am fairly new at this and of the companies mentioned above I want to set up a Dividend portfolio using 3 to 4 of them. Suggestions would be very much appreciated as I am not well schooled in this area.
Thank you

Q: Hello 5i, Have you any information as to the financial problems at TD Waterhouse direct investing as I have sent emails with no response and tried to phone also with no answer after a long time on hold. There are financial errors in my accounts which is quite concerning. Thanks