Investment Q&A

Q: Recently I see articles about “alternative” investments as a means of diversifying the portfolio. They are often written by fund managers suggesting their product.
1. What are considered alternative investments?
2. How does the individual investor access them directly?
3. Does adding them to a portfolio mix make a more diversified portfolio ie: add stability?
Thanks as usual.

Q: Scotiabank Canadian Low Volatility Index (2 year) Minimum Guaranteed Return 4%, Maximum Full Term Return 11%. A friend has it, she can't explain how it works.

Could you please explain to a person like myself who cannot understand how someone would get 11%, would it still take 2 years to get the 11%?

What is the minimum amount to be able to purchase this?

Are these things something knowledgeable financial individuals like yourself might buy?

Thank you.

Q: From time to time, Reuters issues statements like, "NYSE ORDER IMBALANCE [symbol] [quantity] SHARES ON [BUY|SELL] SIDE"; what is this saying?

Q: There has been a few questions over the years and recently on stock weightings and sector weightings. This is my story. My portfolio has 92 % in technology and 8 % in financial services with a total of 10 companies. One stock is 39% of the overall stock value. I use the theory of buying the best of the best and hold forever. I am very happy with my choice of asset allocations and don’t see the need for change. I am 67 years old and my average gain, for the last 14 years has been slightly more 21% per year. My thoughts is that if you are happy and know the risks don’t change - I am happy with my selections. I read 4 to 5 hours every day on the specific stocks, sectors and political articles. I look at stock charts weekly. Anything that might affect my stocks or the stock market, I read. Last year my portfolio dropped almost 40 % but this year I am up more than 60 %. In summary stick within your comfort zone. Clayton

Q: In a recent answer concerning NTR you mentioned it is trading at 9.6x Forward P/E. Where do you find a company’s forward P/E? Do you calculate it using the numbers pertaining to the company found under the Market Data tab? If so what numbers do you use? Thanks … Cal

Q: On Jun 21st, you responded to A regarding stocks for a TFSA. My son has a smaller TFSA but a longer time frame. He currently holds ZSP in his TFSA and we have been looking at adding some stocks. We like all the ones you suggested, but some of them are also in the top ten holdings of ZSP. Would you suggest adding the individual stocks anyway? Or selling ZSP and holding only stocks? Our initial plan was to make ZSP about 20% of this TFSA and then hold 8-10 stocks. Also, what do you think of adding AXON and AMD to his TFSA at this time? Thank you.

Q: Is the start price for the TMX on the income portfolio correct?

Q: Peter,

Do you have any source of information that will tell you approximately what percentage of investors use each of the main options as I see them , ie DIY, Banks, Mutual fund co's , and Full Service brokerage houses? I am including the Lifeco's under Mutual fund co's.

If not, what is your estimate?

Thank you

Paul

Q: When someone is granted options and they exercise said options do the individuals have to pay cash to exercicse those options or are options like free stock granted to people?

Thx

Q: Good Day Team,
My question is whether it's better to buy MSFT Canadian or US.

Thank You,
John

Q: I recently received my Money Show mailout. Seems like a lot of new faces - no Peter - no Ryan. The only 5i/Canadian MoneySaver person I see is Lana from the Canadian MoneySaver. I am used to speaking with 5i representatives but I guess this year it would be Lana? Thank you. A long time member.

Q: When ratio or metric do you use to access whether a company is too leveraged. Is net debt to ebita the most telling or do you use others. Can you explain which ones you look at and at what level it becomes a concern when interest rates rise or revenues decline. Thanks!

Q: Dear 5i,

Using a Canadian broker.
Is there a way where one can slowly build a small position in CSU at a fraction of it's normal stock price of approx. $2,650? For example, is there a way where I can buy 1/10 share at approx. 1/10 the price? I find this is an issue for stock prices that are very high. Does CSU have a history of doing stock splits?

Q: What would be the best stocks/sectors/investments if we were to enter into a deflationary environment?

Q: hi,
im looking to add several US equities. unfortunately the exchange rate is not great for CAD>USD right now. I am considering buying the CDR's. can you provide your thoughts on CDR's, the main advantages/disadvantages ( and try to include how they perform in relation to the underlying US equities in USD's, and how liquid they are ie if needing to sell quickly. cheers!

Q: Not a question but an answer from TD on info I was researching and I notice also A few people were asking about giving shares in lieu of cash to a charity so I thought I would forward the TD answer.

""You can make the donation from your margin account at no fee, all of have to do is obtain a donation form from the chosen charity which should have the receiving party's information pre filled and then you just have to fill in the margin account info for the delivering side.

Once filled out, you can scan in an email pdf format to me and I can submit to our back office who would process it in approx. 2-3 business days.""

Q: Is there a difference in buying Fractionals via Neo CDRs and Wealthsimple?
Thanks!

Q: Hi
What metrics are best to use when valuing a royalty company like DHT.un? Thanks
Kenn

Q: Re Brians question about tax relative to RiF's on death relative to charities. An excellent source of information is your local Community Foundation. This is one of their specialties.

Q: Hi 5i Team,

I'm wondering if you have any suggestions for using options to generate routine income. So far, I mainly write puts on companies that are temporarily out of favour but that I wouldn't mind holding for a while and also collect a dividend if I end up having to hold for a bit (e.g, ENB, TD, BN, CVS). I do this randomly (e.g., once or twice a year on a couple of companies) but would like to increase the frequency. I don't have a good sense for what expiry date I should choose (I typically go out six months or more) or the best strike price (I usually pick around the current price). Do you have any good ideas for the current market that you could suggest and could you recommend a resource to do more research. I'm currently thinking of writing puts on TD, CVS, and BTI and wondering if I should scatter their expiry dates.

Thanks as always,
Lisa