Investment Q&A

Q: Hi i5
My wife and I are 59 years old and semiretired
Are pension income is enough to fund are day to day life , we have some investment
Income that is used for travel and any extras that come up.
In that investment we have about 25 % in bond funds (pmmo005) 20 % cash
And the balance in Canadian and American equities .
On Bnn market call many analysts are saying bonds are not the best investment in
today's market of raising interest rates . Would you recommend selling or reducing the bond portion of portfolio .
Thanks for the help
Sam
Market

Q: I'm not sure if this has been previously asked.I have 4 accounts with Scotia itrade. In their acct. summaries they don't have a field for current allocation percentages. I'd like to set up a similar format to your Balanced,Income and Growth portfolios reports.I assume your program is propitiatory.Are you aware of other similar programs available to avoid doing it manually?.

Q: this is a general question on options but could pertain to my holding of a fair number of $20 mar 17 call options on DH corp. So what happens when a companies shares are halted and remain halted thru an option expiry date? I assume there would also be no trading in the options either. what options would an option holder have in say a case like this with my holding of dh calls well into the money. In this case I would assume it would be halted due to an offer but also in a different case it could be a bad situation which could cause the stock to drop. would the option expiry date be moved forward to date when the halt was removed?
thanks Tom your article on ala was timely as I was just about to buy it and bought the ala.r instead, thank you.

Q: Hello 5i Team, I would like your views on averaging up on stocks. I was reading in your blog the article about Averaging up on a stock. Yet I hear many professional say to take some off the table when you have some winners. Why not keep your winners and avg up instead? I like to wait for a 10% gain from my last purchase price and see some momentum before I avg up. Can I get your criteria or trigger point before you avg up on stock. Is your criteria different for a blue chip such as a bank than a growth stock such as a tech company?
Thanks for your service

Q: Could you please tell me the protocol for answering questions? Does Peter review all questions and answers??

Q: Hello 5i,
I am glad to see that you are still answering questions about bonds and bond funds. I sent in a question the other day about BND, an American bond fund and was told that you don't deal with bonds. These questions are important to us, however.

Regarding the answer you gave to Fred on Feb 15, regarding this bond fund. You said that with distribution for this year, the fund is still under water, only slightly, though.

I continue to buy bonds but with trepidation these days. With such a question and such an answer, for instance, I am asking myself why I would buy a bond fund if I was going to lose even a bit of money? Wouldn't I be better in a high interest savings account?
thanks for the great service

Q: Hi Gang.. For a swing or position trader in a winning trade and where the stock is now rising parabolically what’s the best way to exit the trade to optimize one’s gain ? Is it scaling out or selling all at once ? If scaling out then what is the best scaling method and if selling all then what’s the best method for determining the exit point ?

Thank You
Anthony

Q: RE: "short attack"
Everyday a quarter of US adults with internet access trade as retail and professional investors make it 54 million and probably 6 millions in Canada. For DIY like me they are all my competition.
"THE" market is probably one of the most expensive of the last 100 years, so finding money to make is pretty dam hard and certainly exponentially more than 2009 or 2012 when Peter started 5I.
So retail have a choice to pause for a while, but professional traders have to come home everyday with more money in their pocket that when they started or they will be, at one point fired.
And then there is HF, the most disturbing newbee on the block, accounting for 72% of all orders on all markets.
On top of this any game has become fair game. No punishment, no rule!
So get used to more fake news more volatility (for those worried about 5% drops..) or follow Peter portfolios.
For those DiY that have time to read, I suggest "Dark pools the rise of the machine traders..."

Q: In an answer to a member's question yesterday about Canadian stocks with high dividends, you said: "Looking at names with a market-cap above $100M, we see NBZ (13%)...".

Northern Blizzard cut their dividend in half in early December; it's now .24 cents per year, paid monthly. At the current share price of CAD $3.63, the div yield is actually 6.6%, not 13%.

Q: This is not a question, but rather a comment on what you guys do. Your analysis on ALA and receipts offers deep insight. I just wanted to say how much I appreciate your expertise, my subscription is worth every penny. Thank you.

Q: What are the difference in listing requirements between the TSX and the TSX-V other than cost and possibly prestige. I have looked at the reports and releases put out by a TSX-V listed company, Sylogist, and can't really see much difference between what it puts out and what a TSX listed company, Intrinsyc Tech, puts out. Thanks

Kenn

Q: I have read of a strategy called "Doubling the Dow" in which something like Powershares ultra Mid cap MVV is used.

I know that there are dangers in this strategy. But, it may be better than buying on margin, because you don't loose as much, if it goes down as you would with margin.

So, the question is what you think of this strategy. and are there etf's for the TSX that could be used for the strategy in canada?
thanks

Q: Perhaps a dumb question on my behalf. How can I check on line or be notified of any new listings on the exchange? I e-mailed and called Sedar, but no response despite reaching out numerous times. Thanks, Marshall

Q: Besides debt/ equity ratio are there other indicators that one should consider a companies debt and their ability to service their debt? What would you consider a comfortable debt/ equity ratio when investing in a company?

Thank you.

Q: In follow up to my previous question, what sectors would you consider adding for diversification? And also your reasoning why.

Q: Dear 5i
I am considering moving my rrsp investments from my acct with my financial planner to an rrsp acct withQuestrade who I deal with as a brokerage company . Am I best to sell all holdings to cash and then have all the cash wired over to Questrade or just transfer in kind convert to cash then rebuy what I want ?
Thanks
Bill

Q: With respect to portfolio construction, do you recommend:
a) Weighting each of the 11 sectors equally? (i.e. 9% to each sector).
or
b) Weighting each of the 11 sectors according to their proportion on the index?
If you recommend option b, which index would you use, the TSX or S&P?
Thanks in advance!

Q: This is a repeat. Where did the February "Coverage Summary" report go? I am trying to access it.

Q: Hi,
I'm trying to shuffle a few things around between my margin, RSP, and TFSA accounts and simplify my portfolio. I'm assuming one would want to hold the highest growth stocks in the TFSA because there is no tax.
However, how do you distinguish what should go into which account? For example, among others, I'm holding a bunch of dividend stocks (BPY.UN, BPY, ZWU, VGH, VRE, PPL, AD) and growth stocks (ONEX, XSU, TNC, CXI, SJ) in my RSP. In my TFSA, I also have a mix of dividend and growth stocks, BIP.UN, ZWB, TECK.B, CGX, SHOP, GUD, CRH, HWO. Should I swap some of these stocks between my RSP and TFSA?

My TFSA and RSP are all maxed out and I have been buying a lot of dividend stocks in my margin account lately (CU, XEI, VDY, ENB, WSP, FTS, AQN, PWF, ENF) to take advantage of the dividend tax credit. Is it better to hold dividend growth stocks in your RSP or Margin accounts?

Any examples of what you would do or insight into this would be great! I'm 35 years old and time horizon is 10-20 years (would like an early retirement haha!)

Thanks!

Q: I own warrants in this company. My question: should the company be taken over (and there is much speculation to that effect)what will/ might/must happen to the warrants if they have not expired?
Is it legally possible for an acquirer to "disown" the outstanding warrants and thus render the warrants worthless?