Q: Wondering why in general a stock rises or drops in price given the number of shares sold or bought has to equal the number of shares bought or sold in a trading session
Thank you
Thank you
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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: Regarding enhanced dividend drip as Enbridge has what other companies in your three portfolios qualify for an enhanced dividend drip....thanks...Gene
Q: With Questrade account I can buy and hold many but not all mutual companies class F funds. Two exception that I know of is Edgepoint and Fidelity. Do you know of any other discount broker that will allow me to buy class F funds and perhaps include these mentioned companies?
Thanks.
Thanks.
Q: hi, I am not a student of finacial history or much of anything else , but with the Saber rattling with North Korea . I would like to know if stocks have any sort of historical behaviour during these periods and that an investor should be aware of ,or take advantage of. Thanks once again for your insight.
Q: Greetings 5i Research,
It has been said that it would be easier to turn a Newfoundland fisherman into a top banker than the other way around.
When I graduated in 1965, top dental incomes equaled top Canadian bankers' incomes. Today, top bankers earn more in two weeks than top earning dentists do in one year.
What happened? Was the investment in my education a poor choice?
(Not that anyone should feel sorry for dentists who, as a group, have replaced physicians and surgeons as Canada's top earners.)
Thank you for your well-thought-out answers to all my previous questions.
Milan
It has been said that it would be easier to turn a Newfoundland fisherman into a top banker than the other way around.
When I graduated in 1965, top dental incomes equaled top Canadian bankers' incomes. Today, top bankers earn more in two weeks than top earning dentists do in one year.
What happened? Was the investment in my education a poor choice?
(Not that anyone should feel sorry for dentists who, as a group, have replaced physicians and surgeons as Canada's top earners.)
Thank you for your well-thought-out answers to all my previous questions.
Milan
Q: I want to give my take on DFN, a split share investment vehicle. I realize 5i and probably every other good financial advisor does not favor this vehicle and would not buy this for their clients. Yet people are buying this product every day.
Please let me know how sound these thoughts are or if you have anything to add.
As an investment DFN is a road full of potholes. For one thing, the dividend could be cut off completely for as long as two years, although DFN has never discontinued its dividend. Along with that, the share price could plunge 30% or more. As well, the share price will probably degrade over the years.
Who would benefit from DFN? Someone who absolutely needs the 11% dividend every month in order to pay the bills.
However, they need to be cushioned against the potholes. They need a mental cushion that will allow them to withstand sharp drops in the share price, as well as survive a disappearance of the dividend for possibly as long as two years.
Therefore, besides the right mental attitude, they need a cash back-up that would replace an absence of the dividend for two years. On a 100k investment they would need about 20k in cash to replace two years of cancelled dividends.
They also need to realize that at the end of the day, perhaps only half of their original investment may be passed on to heirs.
I can see people in their 70s and 80s who are prepared for the aforementioned potholes buying DFN, so there may be a demographic tailwind holding up DFN for the next several years. Thank you for allowing my view to be heard, and I appreciate your response.
Please let me know how sound these thoughts are or if you have anything to add.
As an investment DFN is a road full of potholes. For one thing, the dividend could be cut off completely for as long as two years, although DFN has never discontinued its dividend. Along with that, the share price could plunge 30% or more. As well, the share price will probably degrade over the years.
Who would benefit from DFN? Someone who absolutely needs the 11% dividend every month in order to pay the bills.
However, they need to be cushioned against the potholes. They need a mental cushion that will allow them to withstand sharp drops in the share price, as well as survive a disappearance of the dividend for possibly as long as two years.
Therefore, besides the right mental attitude, they need a cash back-up that would replace an absence of the dividend for two years. On a 100k investment they would need about 20k in cash to replace two years of cancelled dividends.
They also need to realize that at the end of the day, perhaps only half of their original investment may be passed on to heirs.
I can see people in their 70s and 80s who are prepared for the aforementioned potholes buying DFN, so there may be a demographic tailwind holding up DFN for the next several years. Thank you for allowing my view to be heard, and I appreciate your response.
Q: I have a question about short selling. I have a direct-investing account. I wonder if my broker is allowed to lend my shares to third party for short selling? If so,
- What is the legal justification?
- How can I prevent that?
- What is the legal justification?
- How can I prevent that?
Q: My question pertains to market history. Could you comment on market activity during times of major conflicts. For example were the markets operating on a "business as usual" mode during world war II or did the market display different characteristics such as lack of volume or liquidity? Thank You
Q: What is your opinion on Investors Business Daily? Can you add any tips or words of caution in relying on this source?
Thanks,
John
Thanks,
John
Q: The CAD is gaining value vs. USD lately.Where do you expect it to peak in the foreseeable future ?...say 6 months
Thanks,
Jerald
Thanks,
Jerald
Q: Hello, i need your insight on gold. I was searching on goldprice.com for gold price in CDN$ AND US$. Why is gold price up in US$ and down in CND$ or vise versa any givin day?
Does it have anything to do with currencies? thanks.
Does it have anything to do with currencies? thanks.
Q: Hi Peter and Associates,
I hear some talk of tax selling as early as August? Some professionals speak of setting up their portfolios to avoid and/or to take advantage of year end tax selling pressures? Some sectors and/or specific stocks have seen modest to significant declines this year and risk seeing above average volumes of yearend tax loss selling?
Many experts do not suggest trying to time the market but also talk of good entry points to initiate a position if not starting with partial ones to begin. Then there are those who factor in seasonality or other technical indicators. Without wanting to sound pessimistic, more than a few guests on business programs express caution, have increased cash weighting to have dry powder in reserve.Markets are not seen as cheap but opinions vary as what to do?
Bottom line, market corrections are part of reality and one has not occurred in some time? What percentage cash might be viewed as a reasonable cushion for a middle of the road risk investor with a 65/35 (Equity/ Fixed Income) objective who would prefer to reduce equity exposure by building up some cash reserves at this time? What suggestions might you have in response to the above and specifically, what reduction in equity exposure might be reasonable and/or sufficient to have substance? Assume a 5% weight in gold forms part of the overall strategy and a sufficiently large portfolio to provide diversification and no over weightings within it.
Fundamentally, are there any specific strategies an investor might use or at least consider in the last months of any year and more specifically this year?
Thank you.
Mike
I hear some talk of tax selling as early as August? Some professionals speak of setting up their portfolios to avoid and/or to take advantage of year end tax selling pressures? Some sectors and/or specific stocks have seen modest to significant declines this year and risk seeing above average volumes of yearend tax loss selling?
Many experts do not suggest trying to time the market but also talk of good entry points to initiate a position if not starting with partial ones to begin. Then there are those who factor in seasonality or other technical indicators. Without wanting to sound pessimistic, more than a few guests on business programs express caution, have increased cash weighting to have dry powder in reserve.Markets are not seen as cheap but opinions vary as what to do?
Bottom line, market corrections are part of reality and one has not occurred in some time? What percentage cash might be viewed as a reasonable cushion for a middle of the road risk investor with a 65/35 (Equity/ Fixed Income) objective who would prefer to reduce equity exposure by building up some cash reserves at this time? What suggestions might you have in response to the above and specifically, what reduction in equity exposure might be reasonable and/or sufficient to have substance? Assume a 5% weight in gold forms part of the overall strategy and a sufficiently large portfolio to provide diversification and no over weightings within it.
Fundamentally, are there any specific strategies an investor might use or at least consider in the last months of any year and more specifically this year?
Thank you.
Mike
Q: I recently heard an investment advisor outline the importance of diversifying beyond “public” equity and also invest in “private” equity (he was quoting the huge amount of private equity that public pension plans typically hold). Do you agree with this thesis and do you have any suggestions on how a retail investor could invest in private equity? Would buying a company like Onex be a good way to gain exposure to private equity?
Q: I recently sold a stock in my RRIF with a small loss. May I buy it in my non-registered account before the delay of 30 days ? If not, what happens if I proceed to the purchase.
Many, many thanks,
Jacques
Many, many thanks,
Jacques
Q: Hi, what is the business sentiment in Canada among CEOs and business owners vs a couple years ago?
It seems everywhere in the news lately that Canada is just not as an effective and attractive place to do business with its increasing bureaucracy and threats of increasing taxes. From Ontario, where the high utilities are impacting manufacturing, to Alberta and BC where the anti-oil brigade seems to be determined to kill any new O&G, LNG and pipeline investment.
Is the news painting an accurate picture? Are CEOs and business owners more/less positive with trying to perform and grow their business in Canada in the current environment?
It seems everywhere in the news lately that Canada is just not as an effective and attractive place to do business with its increasing bureaucracy and threats of increasing taxes. From Ontario, where the high utilities are impacting manufacturing, to Alberta and BC where the anti-oil brigade seems to be determined to kill any new O&G, LNG and pipeline investment.
Is the news painting an accurate picture? Are CEOs and business owners more/less positive with trying to perform and grow their business in Canada in the current environment?
Q: I believe AI will be amazingly disruptive in the immediate future. Are there any Canadian companies using AI and any public companies working on AI which could be bought for investment purposes?
Q: Debt: What is a reasonable and safe amount of debt for a company to have? Does it depend on the type of company? I'm looking for a guideline. I realize telecoms carry higher debt. Also, I noted that you pointed out with Encana (ECA) "debt is still more than 4X cash flow".
Q: Just a comment on the changes to the ex-dividend date due to T+2 settlement in Canada and USA from September 5, 2017. Your members may find it useful.
Starting September 5, the ex-dividend date will move one day ahead (only one day before record date). So for instance in the month of August - record date is Aug 31 - ex dividend date is Aug 29.
In September for record date Sept 29 (Since 30 is a Saturday), the ex-dividend date will be Sept 28.
From the CCMA website:
(Added February 22, 2017) Will there be any T+2 impact on record and payable dates?
In Canada, the ex date on declared events such as dividends or other distributions will become one business day prior to record date instead of two business days prior. The exchange on which a security is listed provides the exdate to CDS, and CDS populates the date into its system. In the U.S., there will likewise be a one-day change.
If you want to read up more there is documentation and Qs at the following websites:
US T+2: http://www.ust2.com/questions/
Canada T+2: http://ccma-acmc.ca/en/faq/
Starting September 5, the ex-dividend date will move one day ahead (only one day before record date). So for instance in the month of August - record date is Aug 31 - ex dividend date is Aug 29.
In September for record date Sept 29 (Since 30 is a Saturday), the ex-dividend date will be Sept 28.
From the CCMA website:
(Added February 22, 2017) Will there be any T+2 impact on record and payable dates?
In Canada, the ex date on declared events such as dividends or other distributions will become one business day prior to record date instead of two business days prior. The exchange on which a security is listed provides the exdate to CDS, and CDS populates the date into its system. In the U.S., there will likewise be a one-day change.
If you want to read up more there is documentation and Qs at the following websites:
US T+2: http://www.ust2.com/questions/
Canada T+2: http://ccma-acmc.ca/en/faq/
Q: When you buy an action with a dividende at a given rate, does the dividend payment you receive stay the same indepently from the variations in the price of the action ?
And, when you buy the same action again, but at a different price and at a different dividend rate, how do you calculate the actual dividend you are to receive ? For exemple,if I bought bip.un at 44. with a dividend rate of 4.40% and I buy it again at 54. with a dividend rate of 4.%, what is the effective combined dividend rate after the second purchase ?
Thank you for your kind attention,
Jacques
And, when you buy the same action again, but at a different price and at a different dividend rate, how do you calculate the actual dividend you are to receive ? For exemple,if I bought bip.un at 44. with a dividend rate of 4.40% and I buy it again at 54. with a dividend rate of 4.%, what is the effective combined dividend rate after the second purchase ?
Thank you for your kind attention,
Jacques
Q: I know this is off topic a bit but do you know any educational videos on trading bitcoin and recommend eBrokers in Canada that allow Canadians to trade bitcoin. I know the risks but feel the more knowledge one knows about a subject the better. Thanks Dave T.