Investment Q&A

Q: In a will situation that leaves your assets to your wife what happens to trading accounts that are held in your name and therefore not joint? How is this treated for tax? Conversely What happens if the accounts are joint? Thank You

Q: Hello Peter & Co,
Looking at their performance over 5 years (compound annual), WCP,PEY,VET,POU & TOU (in slightly less than 5 years) are on top of the list with an average of 23%pa. Next came larger caps like IMO, SU, HSU & CNQ with an average of 4%pa. In contrast CPG returned less than 3% which means shareholders incurred a capital loss; BTE was a little lower than that.
It is true that past performance is not indicative of future returns; but I figure that having all faced the same music, some of them obviously danced better than the others.
No wonder then that the only energy producer in the 5i model portfolio is WCP; with your input Peter & Co, my holdings are limited to WCP, VET and TOU.
Thanks a lot,
Antoine

Q: A general question to 5 I staff and members.
Do you know if we can claim the money paid for joining 5iResearch on our income tax? I don't own a business, so the only thing I could claim in the past was a safety deposit box.

thanks,

Paul

Q: Hey guys, I am a little confused, RBC breaks down the consumer sectors with "defensive and cyclical" and anothers break it down by"staples and discretionary", what's the difference?
Thanks
Jim

Q: Good Morning Peter, Ryan, and Team,
Just a question regarding rebalancing. Some of the stocks in our portfolios (Thank you very very much) have run up to the 6-7% level. (CSU is amazing) Should I be trimming / adding on an ongoing
basis ??? Or would it be better to trim during the typical period of seasonal strength (like now) and add during the period of typical seasonal weakness (like the fall). I know that it does not pay to be too cute in this game. Your feedback on this issue would be greatly appreciated. Thank you for all of your help. DL

Q: I have been around the block a few times on the question of fixed income in asset allocation. I have often wondered about Warren Buffet's famous advice to his wife on his death--that she should buy an ETF for the Amercian market and 10 per cent in fixed income. I have always wondered why the 10 pecent in fixed income? It doesn't protect very much of your wealth if there is a downturn. But, then again, neither does 20 or even 30 percent, I would think. So, it occurred to me that he suggests this simply in case there is a downturn and cash is needed. He doesn't think that you will likely need more than 10 per cent to get over the hump. I know that, despite your other talents, you are not a mind reader. But, do you think that this would be a reasonalbe interpretation of Buffet's advice? And reasonable for at least a good many people?
thanks

Q: Hi 5i team,
How do we estimate present value of CPP & OAS? I roughly use $100,000 for each $500 monthly income based on typical annuity from insurance companies. Is this okay or should we use a PV formula? Thanks

Q: Hi Peter and team - Do you or any of your readers have any recommendations for a Web site that gives accurate and relatively concise summaries of several of the fundamentals of a company, in particular its cash (and cash equivalents) on hand as well as debt. I have used Globeinvestor and TD Waterhouse but neither seem to show the cash component.
Thanks.

Q: I've calculated that I should keep one year of income as a rainy day fund. I've been holding it in cash but would like to maximize return while not risking its safety. I've been considering a short term bond fund such as VSB. What would you recommend?

Q: There seems to be a deluge of portfolio building and asking of 10 stocks etc and portfolio advice instead of specficic issues or one or two comparisons.Seems to have gone from where it was.

Q: Greetings
Many publicly traded companies grant stock options to their executives and officers under the guise of aligning the long term interests of management and shareholders. 10% of the issued and outstanding share capital to be made available under the plan appears to be the norm. From my perspective this is a 'heads I win, tails I don't lose' proposition for those involved and would much rather see outright share purchases by management. Has 5i considered doing a blog or similar regarding stock option plans and potential red flags to watch out for? As the board of directors are giving away our company when they do this some thoughts around what is reasonable from you would be appreciated.
Thank you so much
Tim

Q: When you give a report on a company you give it a rating A, B- etc.

Do you have this rating available on all the other stocks that you have not profiled

Great service

Q: Elkwater resources did a reverse stock split and changed their name to Striker .
SkX share are at 2.10 this morning. I'm confused.
Can you explain a reverse stock split and the benefits to the shareholder

Q: Hello Peter & Co,
I am 72 years old and hold a RRIF portfolio; I consider that my Cash/TFSA positions are not material for this exercise. I'm also a recipient of CPP & OAS. The PV present value of that stream of income invested at the same rate as the indexation rate for the next 20 years is roughly $360,000, which is nothing to sneeze at. I would feel comfortable with a 50/50 Equity/Fixed Income allocation for an acceptable way of preserving my capital. Do I consider the PV amount of CPP/OAS as a "fixed income" component of my overall portfolio? or would it just be considered fictitious, thus separate from my RRIF. The math would be quite different in each case; or should I go with my own "comfort zone"?
Your opinion is most valuable; I also welcome the opinions of my fellow members.
Thanks,
Antoine

Q: need help ; i am trying to manage 6 different portfolios .. my rrsp & lira, wife rrsp & lira, my / wife tfsa .. i am currently trying to place a good stock in each .. e.g. have CXR in my rrsp, wife rrsp, and mix / combo in all others ... had to track sometimes ... have heard that i should treat combined value of all portfolios as one, then hold one stock in one of the accounts and it would represent 5% of the total value of all accounts ... if not to confused by now your opinion please

Q: Hi 5i team,

I find the retail investor rarely has a chance initially regarding large hyped IPOs. However, it would seem that watching the stock months (or a year) out there is often a chance to buy in. Timing that is difficult. Case and point Twitter. Will it eventually go up (I would say yes based on broad use of the app). I have watched Facebook where the stock took off mid 2012 and LinkedIn (stock up early 2013). In both cases it seemed if you bought the stock once it raised above it's IPO price you would be successful. Zynga acted contrary to this hypothesis.

So with 2015 possibly marking the entry of hyped IPOs Uber, AirBNB, Dropbox and Shakeshack. Any advice in general?

Q: What are the risks associated with the shortage of the US dollars around the world? I hear that much of the international money borrowed are in US dollars. Reimbursing this money will cost more as US dollar appreciate. What will be the macro effect of this will be on the different markets? And how an investor can best prevent himself against this downturn?
Thanks. Jean

Q: hello 5i:
not a question; a comment. I often see people, when asking Peter a question, quote how many analysts are advising buy,etc. Peter hasn't held back on his opinion of this, so here's more ammo:
Concerning equities, an analysis by Bespoke Investment Group recently showed 48.3% of the 12,122 ratings on S&P 500 (NYSEARCA:SPY) stocks were "Buy" (or equivalent) ratings, 44.9% of ratings were a "Hold," and just 6.67% of ratings were a "Sell,"
need I say more?
thanks
Paul L

Q: Hello Peter & Co,
It seems that a few investors are taking some profit today in Health/Pharma & Info Tech; that's healthy as they had gained significantly lately. No need to panic and stay the course, right?
Have a good weekend,
Antoine

Q: Could you please send me the details on the Oceania cruise.Thankyou