Investment Q&A

Q: Having an Income portfolio including the above companies, I'm unsure of the effects of a potential increase in US rates in say December 2016 when at the same time the Bank of Canada holds rates or even maintains dovish tone signally near term rate cut. Will holding Canadian interest rates steady offset what would otherwise be negative pressure of a US rate increase on Canadian dividend paying stocks? Thanks

Q: I am a volunteer helping to invest funds conservatively for a not for profit. What GICs would you recommend that combine safety and return? Period to hold is about 18 months but we want cashable GICs. Thanks.

Q: Why would FP report the TSX is up 155.73pts.
Globe & Mail reports TSX up 92.12pts, as does i-Trade.
Yahoo has TSX up 90.77pts.
Thank you.
HD

Q: Hi Peter and Team, Just a heads up for members who use Scotia iTrade and hold ADW.A. My son and I both hold this stock and it recently split 3:1. However, iTrade converted only 2:1 in both of our accounts. I'll be contacting them today.:(

Q: In the current interest rate environment would you prefer a corporate bond etf like cbo or a preferred share etf like zpr or hpr?

Jason

Q: Is the following scenario possible?

Let's say there is a stock traded on an exchange and the shares are worth about $1 per share. At a particular time, Buyer A wants to buy 100 shares and puts in a market order for 100 shares. At the same time, Seller X has 100 shares but he puts in his sell order at a price of $500 per share.

Would this trade take place? Could this happen on the TSX? If so, would you recommend that a dollar limit should be placed on all orders?

Q: I want to start a portfolio with my kids who are still in their 20s, while at the same time teaching a little of "how to". Do you have any suggestions? Any particular literature you prefer, or your own approach would be terrific.
I could always buy off of your list but then not much teaching would occur:)

Q: Could you please update your list of top US stocks that you suggested were appropriate for an option writing strategy.

The previous list from 3-4 months ago was comprised of:

GOOG, FB, GRMN,AAPL, SIMO ( these five had substantial cash balances)

NOC, LLL, ITRI, JPM, NDAQ,HES

Thanks

Q: Reading this article, I can t help but wonder why is the growth rate still so low ? Am I correct to assume that bigger the central banks become, this shoud be a positive for the global growth ?

http://www.bloomberg.com/news/articles/2016-10-16/big-central-bank-assets-jump-fastest-in-5-years-to-21-trillion

We often hear about the level of debt but rarely about the creditors of the global market. Who are the main creditors ? What is the global balance sheet looks like ? I know there is a lot to talk about here but your general comments would be appreciated and suggested reading material or books on the topic as well. Thank you.

Q: Good day 5i,

Would you have a suggestion for a research service for US equities? I have tried zacks, and so far, not impressed.
Do you plan on initiating us equity coverage in the future?

Thank you
KR

Q: Hello 5i
Would you please offer your opinion of a few individual holdings and other investment vehicles worthy of long-time hold and more importantly dividend reinvestment. I see your a selction of ETF you have been noting are VGG(for USA) and CDZ(for Cad). Is this the top idea or are there other ideas (individually or combination of holdings)?
The goal is to take advantage of the market ride and still feel comfortable with the investments and know more of a good investment is being purchased regularly.

Alternatively, would one just let cash build up and buy shares and units on a quarterly basis instead of utilizing a DRIP?

By example, just bought CAR.UN today. Working to determine whether it makes sense to join the drip; especially with the 5% discount of the Plan.

Thanks for your thoughts
Dave

Q: Enghouse and Allergan have been weak and range bound for some time. Is there a strategy for stocks like this? Does one lower a portfolio weighting once a stock looses momentum? My hesitation has always been that at any time these stocks can report an acquisition and open higher in the double digits. As well, I feel like a hypocrite buying for the long term only to move on when things slow only to look back years later wishing I held. Allergan is a 4% weighting, Enghouse is a 2.5% weighting. Would you consider these core holdings?

Q: Hi 5i Research team , I have now limited capital to invest relative to the size of my overall portfolio. I am a long term investor with long horizon and I am relatively satisfied with the quality of the stocks in my portfolio. I have recently mainly used margin, cash from takeover, overweight reductions, dividends over margin's interest and small personal cash contribution to refund the margin used and to make new investments. I am currently fully invested and, I intend to mainly invest in a prepared in advance short list of companies when there is broad stock market corrections (10%ish) that I expected every sx to ten months. Could you comment on this strategy, its merits and weaknesses? Am I forgetting something? Thank you, Eric

Q: I have read your comments about companies records of meeting/missing/beating estimates. ULTA just raised their guidance and is up over 10% at the moment, but where would I find their record of beating estimates?
Thx as always.

Q: Hi 5i. You periodically answer questions re sector allocation percentages. One of your more recent, discussed the inclusion of Real Estate as the eleventh.
Can you clarify if these suggested percentages would be for the Equities portion of one's portfolio only, and thus would exclude the Fixed / Cash portion. Thanks for clarifying. T.

Q: You have previously recommended in not going above a 50/50 mix in equities and income for a average investor. What can one assume is included in income producing products? Preferred shares, dividend paying stocks, bonds....? What percentage breakdown is recommended for an average investor for a 10 year time frame? Thank you

Q: Understanding the risks involved, how do you feel about holding equal positions in inverse ETFs (10%) and cash (10%) given the potential choppy months ahead for the market?

Q: I just realized that the 5i Research News that I receive by email updating the portfolios and their status is not on the 5i Research website.ie I cannot access those written reports off the website. Am I missing something or is this correct?
I like to print these written reports. I know that I can access the model portfolios from the website.

Q: "Austin

Q: I keep reading about this, but NO ONE can tell me exactly HOW to ENROLl in these DRIP Programs. I even dropped into the office of Agnico eagle around the corner, and they did not know.....telling me to see by broker. I also wrote to someone I respect very much at ROB, but to no avail. Can you please tell me how?"


With many decades in existence & probably the best site in Canada is:

http://www.dripinvesting.org/boards/boards.asp


It is a free, moderated and honest site. I have used it and helped many, many people across Canada with beginning a true DRIP and answering questions for over a decade.

The 2 main stock transfer agents which handle ~90% of all DRIP's in Canada also respond to some questions at this site.


OB, OperaBob, Robert Gibb is the Canada Board moderator. He has been on tv, & quoted & interviewed on some news sites over the years like the Globe & Mail....


There is a board for exchanging shares also.

http://www.dripinvesting.org/boards/BoardMsgs.asp?BID=8


Hope this is helpful.

Q: I currently hold fts and aqn and down about 8% on both.With a us rate hike possible in Dec. Should I hold or exit my position. Further why would a small .25 increase have such a down effect on these stocks.This increase has been in the news for a year?