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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: Good morning gents,

Please forgive me if this question is out of bounds.

Currently started my investment career in April. I have all stocks in the Beport covered to a T. I also hold a large holding in CNR form employee share plan which is double the Beport holding, 400K. I am looking at the growth portfolio and don't know if I am extending myself to thin.

I was interested in a 50k start and was wondering if this is appropriate given the amount I have in equities.

I have a 5 yr timeline to retirement with a decent pension plan. Thanks for the terrific insight to a formerly very cautious, see bank account investor. Risk level has gone from scared sh-tlless to moderately confident.

If this is two cumbersome or difficult. a question please disregard.
Read Answer Asked by Kelly on June 12, 2017
Q: HI 5i,

I unfortunately bought into Shopify and Apple right before the big tech sell off on Friday and today, and as such I am down quite a bit.

I know the financials and growth prospects of both companies are VERY strong and a rebound is likely within the next month, so I am wondering whether this is an opportunity to buy these stocks at a lower price. My sector weighting in tech is currently 12% (I am in my mid twenties with a higher risk tolerance), so I am also wondering whether you think I should instead sell to cut my losses if you see this correction continuing long term.

Thanks,

Grace
Read Answer Asked by Grace on June 12, 2017
Q: Good morning gentlemen,

I have fairly large gains in the fang stocks as well as with Apple. With the Nasdaq taking its second consecutive beat down today, Would you be inclined to take profits. With Apple being down close to 8 percent in two days ( due to downgrades, ostensibly), in your experience. Does a stock like this rebound the following day? Also, do you think the sector shift away from tech could be an enduring trend?

All of the aforementioned positions are at 5-6 percent holdings.

What I'm getting down to is : sell today, or wait for a rebound ? I understand the former involves a degree of market timing, but surely with your many years in the industry, you must have some flair for such events.

With much appreciation,
Karim Rahim
Read Answer Asked by Karim on June 12, 2017
Q: My daughter has $15K she will be putting into her TFSA with another $1500 per month following (at least, could be up to $2500). She has another $11000 that currently is with a fund manager that is a mutual fund that we will not touch. She will be using this a down payment for her first home in 14-18 months. She is OK with a little aggression as she is aware of the volatility. Are there some ETF's, stocks or other that may be suitable for some growth over that short time period?
Read Answer Asked by Scott on June 12, 2017
Q: Hi 5i super team!! I have a hypothetical question...I am a dividend investor. I do not subscribe to automatic dividend reinvestment, rather, I collect the cash and then selectively reinvest the cash in the stock that seems to have the best value. Suppose I own stocks A B C D E...all are overvalued except C which is a bank. Even though, the price of the bank is at the higher end of its 52 week range, and even though the stock potentially faces future head winds, do I keep reinvesting the dividend cash into this stock? If it holds a higher than7% presence in the portfolio at what point do I stop reinvesting the dividends into it and perhaps selecting to invest in the next best valued on the list? I am looking for a rule of thumb here if there is one. Hope you have a great weekend! I hear it is going to be a hot one 😎😎😎
Read Answer Asked by Tamara on June 09, 2017
Q: Hi,

Finally opened a TFSA 6 months ago. Contributed $10K so far and expect to be contributing $1,000 - 1,500 per month for the indeterminate future.

Currently hold AQN (28%), MFC (24%), GUD (10%), PHO (7%), PEO (6%) and cash (25%). Looking at the following to use up the cash: ENB, SYZ, ITC, OTEX, SIS. I am open to any of your recommendations. Should I wait a couple of months to accumulate more cash?

Thanks.
Read Answer Asked by Larry on June 09, 2017
Q: RE: June 08, 2017 - Asked by Jerry - NEO >>>>

Looks like I won't be getting quotes directly from Google any time soon. Received the following reply to my email from NEO:
Thank you for your market data inquiry. I can confirm that we have engaged Google Finance with respect to making NEO Exchange market data available on their platform, but they have been less than responsive. Most global data vendors do currently support NEO data. If you are inclined, please feel free to contact them directly with your request, as there are no applicable fees for them to make NEO data available.
Read Answer Asked by Paul on June 08, 2017
Q: As I am over 55 and live in BC I qualify to defer my property taxes until sale of our home. I will have to pay .7% interest on the deferred funds this year and the rate can change yearly. I was thinking of depositing the equivalent funds (about $2500 per year) my TFSA each year as i have unused room and I was wondering what recommendation you would make for a reasonably safe investment for these funds for the long term until sale of our home when they will come due along with interest.
Read Answer Asked by John on June 08, 2017
Q: Hi Peter, Ryan, and Team,

I understand the rationale for different weighting of sectors among the three portfolios. You've stated in the past that we should look at our entire portfolio to "determine where we stand", and I've done this for my RRIF, my wife's RRSP, both of our TFSA's and our joint Margin Account. I use Google Sheets to track this entire portfolio. My question is this: In a 'composite" portfolio, how can one determine the appropriate sector weighting, or is it purely a personal choice? For example, Technology is 21.38% of the Balanced Equity Portfolio, 32.05% of the Growth Portfolio, and 7.26% of the Income Portfolio. In our 'composite' portfolio, Technology has a weighting of 10.83% of the portfolio's equity portion. So I suppose my question would be "How do I know that my weightings are appropriate, and once weightings are chosen, do I stick with them? Or should they vary for different points in the economic cycle?"

I have another question that I'm hoping can be answered by one of our computer-savvy members: As mentioned, I use Google Sheets to track our portfolio which can "capture" the stock price for popular indexes like the TSX. However, there's a "new kid on the block", namely the Aequitas Neo index, and I haven't been able to "capture" prices to be inserted into Google Sheets automatically. As an example, a Canadian Money Saver top-rated ETF, (CLU) is no longer listed on the TSX, but is now listed on the Aequitas Neo index. Do any 5i members know how to accomplish this "price capturing"?

Given that there are several questions in this long-winded question, please deduct as many question credits as you deem necessary. Thanks for all your help! Now I'm going to watch Peter on BNN which I PVR'd earlier!
Read Answer Asked by Jerry on June 08, 2017
Q: I am wondering how to proceed...SIS is held in a well balanced "balanced" portfolio and now it's weighting is 7.8% with 55% unrealized gain. (SIS position is held in TFSA). I'm wondering
which "rule" I follow now....reduce the weighting or let the winner run? How do I decide which one to follow for SIS? Or do I do a compromise and cut the weighting to 6% rather than 5%?
Read Answer Asked by Tom on June 06, 2017
Q: Hi Peter, Ryan and co

My TFSA, RRSP, and RESP is entirely comprised of the model portfolio, and about half of the growth portfolio. The stocks I selected from the growth portfolio in particular has done very well so far. However, this means that I currently don't have any exposure to the US or international markets, other than VGG.TO, which I hold a 3% position in my RESP.

I have some funds I would like to invest in a non-registered account, which would represent roughy 10% of my total aggregate investments. Can you please provide some suggestions on what you think I should invest in for better balance, while maintaining a medium-aggressive investing style?
Read Answer Asked by Eric on June 06, 2017
Q: Would like to know if I am calculating the amount of the reduction in weighting for a particular position. This is how I do it....I take the current market value of the position, say 7% of the current market value of the portfolio, and deduct the original book, cost value, which is 5% for this position in the total money to be invested in the portfolio, and then sell this difference at market price at that sell date.....Am I doing it right?!
........Tom
Read Answer Asked by Tom on June 05, 2017
Q: There were a couple comments today referring to a stocks yield based on the initial investment (which could 1 year ago or 10 years ago or more). I have seen this come up here before and on investment chat lines I follow. It seems to me that investment decisions should be based on the current situation (current yield, fundamentals, or whatever) and that yield on initial investment is somewhat meaningless other than as a pleasing way to view a successful investment. What am I missing? Could you comment?
Thank-you
Read Answer Asked by grant on June 05, 2017
Q: 5i team what would be your thoughts on adding some leveraged funds to my taxable account. The lending rate would be locked in at 2.99% for a year and then if no other promotional offers next year maybe in the 4% range after that. I would be investing the entire amount into ZDV with a dividend of 4.4%.

I can re invest the distributions monthly at no cost with Questrade. And the interest on the loan would be a tax write off.

How much of my portfolio would be the max to leverage (5%-20%) how long term should I be thinking to hold ZDV. Or any other candidates for ETFs?

Thank you!
Read Answer Asked by Kyle on June 05, 2017
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