Investment Q&A

Q: Would you prefer the hedged or unhedged versions of these ETFs for a RRIF?

Q: I have read in the past in which you give a suggested total % weight for the 10 sectors but I can't find the question in which you answered this question so if you could give the suggested % again I appreciated this.

Thanks

Q: An observation/rant regarding TFSA accounts.

It appears per the media that the good ol' gov't lied to us CDN.'s about what we could do within a TFSA account or at least set people up so they could get their taxes from people's TFSA (TAX FREE Savings Account) in the future (starting now).

As I understand, the gov't said stock(s) could be bought & owned within a TFSA. But the gov't never said there was a minimum time period that any specific stock had to be held and owned for. So the smart ones who know how to trade during shorter time frames, or put lots of the their TFSA into say, SHOP-tsx, CSU-tsx, KXS-tsx... have grown their TFSA to as much as $1 million dollars and a few have even grown theirs beyond that per the media.

It appears the gov't wants its cut now.

As a long time (decades) investor and trader I take objection to the media and financial world's BS around the issue that "Investing" is holding for a longer time and "Trading" is "Gambling" when done in shorter time frames.

I have always seen Trading and Investing as the same thing. That being, speculating that the stock's price will be higher in the future, (setting aside Shorting) be it, 5 minutes, 5 years or 5 decades. It is an unknown and some may say either is pure speculation or gambling. Both are trading over different time frame periods. That is the only difference. Period.

Technicals and Fundamentals are both used to project (speculate) about the future.

To use a real but just singular & extreme example, of the original big companies from the original DOW only GE remains. So if anyone bought the original DOW (or if there had been a DOW ETF) and "Invested" by holding they would now be on welfare as they would be broke. So Investing is not any better than Trading (knowledge is required to succeed in either).

5iResearch also trades regularly, as do investors like Warren Buffet.

So I wish our gov't, the media and financial industry would stop playing games with us so regular people can make some $$$ so as to support themselves, spend $$ on goods, start businesses to give people employment, ...

Lastly, if those with a TFSA of say $100k, $500k or $1 million have not removed any $$$ from the TFSA are they not SAVING it in a TFSA (Tax Free SAVINGS Account)?

Have a great day!

Q: Surely, among the 58,000 questions which you answered there are some about your views on John Bogle's idea of "Don't look for the needle in the haystack. Just buy the haystack." How can I find them?
Alternatively, can I have your views now?
Thank you

Q: We are still sitting with 20% cash waiting to deploy on downturn. Would like to enter market soon in your income portfolio and increase a 1.5% holding in IGM or other tech etf. Would now be a good time begin on the income portfolio and which tech etf would you favor. Thanks for your great service.

Q: It's frustrating to own a stock like EIS that is infested by the short sellers who have no scruples about the interests of other investors in order to get their loots.

Have there been prior class action suits of the shareholders taken the short sellers to court for compensation if their basis of shorting the company happens to be false or pure fabrications? Are there lawyers who specializes in these type of suits?

Just curious. After all the door should be able to swing both ways.

Q: How useful have you found valuation methods like Earnings Power Value, Graham Number and Discounted Cash Flow analysis in stock selection?

Q: I see a couple of concepts repeated in your answers: 1) if you have a short term need for cash (buying a house within 1-2 years eg) you should hold cash or cash-like investments (i.e., not equities), and (2) in general, some equity investments may be ok, but only for a 3-5 year hold.

Can you walk through the mechanics of how to deal with the situation of investing when you know you'll need cash after, say, 4 years? Do you buy good diversified equities (eg BE portfolio) and hold for 4 years, committing to yourself to sell only on the day before the 4-year period is up? Or do you buy such equities, but then slowly rotate into cash (when?)? Or commit to rotating into cash at the 2-year mark or some other arbitrary date? Or do you assess the situation at the 2-year mark (e.g.) and hang on, or not, depending on whether the portfolio is high or low?

Wondering what your thoughts are on buy/sell strategy in such a scenario. Thanks.

Q: With interest rates likely increasing this month in Canada and also the USA, would you put any extra cash into bond funds (like CBO,XHY) or preferred shares right now; or wait to see if the prices decline with the new higher interest rates?

Thank you.

Q: How do you suggest playing the upcoming increase in interest rates >

Q: Is writing covered calls on a US Market Index ETF (e.g. SPY, QQQ) safe?

Q: Morning folks,

Could you please comment in regards to establishing positions in good quality companies that are so called expensive. I hear money managers refer to companies as to rich and need to wait for a pullback before getting in. With some companies a pullback might not even happen. As a long term investor does it really matter when an investor buys in. Could you elaborate.

Thank you.

Q: I want to invest about $400000 new money, over what time period should I invest ? Is this a good time to get into the market or should I wait for possible pull back. or should I get into the market now by buying all the companies in the 5i income portfolio? or should I invest half now and half if the market pulls back.
Or should I just park the money in HFR until oct or nov?
Thank you

Q: Wow! I asked my first question and it was answered with an hour or two. Spectacular service folks (not just the quick answer, but everything else too). I have really enjoyed this service over the last couple of years. Oh yeah, and that goes for the ETF and Mutual Fund Update as well as Canadian Money Saver Magazine. Much appreciated.

Q: Re Jim's question 26th June about his daughter's RSP & TFSA.
Don't think she can get the dividend tax credit if shares are held in these accounts. Did I miss something?

Q: I am wondering about the benefits of using market and/or limit orders. My normal purchase is between $5,000 - $10,000 and I am a long hold investor type. I have used the limit option maybe twice and frankly, found it kind of stressful - always having to check if the order got placed or looking to see if the share price is increasing and therefore I miss out altogether. My initial reaction is that in 3 years I won't really care about the few dollars I might save today. Or am I being too blase about this and throwing money away needlessly?

As always, appreciate your insight.

Paul F.

Q: when interest accumulates on 100,000 GIC does it lose government insurance
Thank you

Q: Hi Peter, I am looking to generate income selling options (both put and covered call). Ideally stock has the dividend, some blue-chip characteristics in case I have to hold. , How you view this as a strategy. Please some good US stocks /ETF for this strategy. thanks.

Q: Peter; In response to Bobs question on discount firms I would highly recommend BMO INVESTORLINE. I have been using them since they began the service. They also have a number of ETF's available , some managed by Larry Berman . They respond quickly and are open to changes . Security is excellent.

Rod

Q: hello Peter...I read over the week-end your article in the National Post about 5 mid-cap US stocks. Interesting! And now I’m wondering…..is this a prelude to inclusion of them in an upcoming 5iR US balanced portfolio?….Tom