Investment Q&A

Q: In our portfolio all of our US allocation is 25% in in one etf - XSP, also 23% allocation is international, again one ETF - XIN Would you suggest an alternate or is XSP and XIN ok in you opinion?

FYI our portfolio is 27% bonds - CBO, 25% US, 23% international,
15% Canadian using 5i portfolio, 5% emg mkts - VWO, 5% cash.
Please give us your opinion and suggest any tweeks or recommendations.

Since becoming a member I have had great benefit and enjoyed this web site, hence the above questions on whether my allocation which I am comfortable with is using the correct product.

Wishing you all a happy and successful new year.

Q: Happy New Year to all!

This is just a general question on "behind the scenes" action at 5i. Over the course of the year, I've come to enjoy, and trust, Peter's recommendations on BNN -- and that was the catalyst for becoming a member here. (Very happy I did -- I just renewed for another 2 years.)

I'm interested in knowing how questions are answered. Given the volume of questions pouring in daily, I can pretty well assume that Peter is not answering all of them, so, what is the team's approach to evaluating companies and providing answers and advice to members? Is there a specific formula, for instance, that applies to everything? I see that the answers come in fast and furious, ... and so there must be some sort of proscribed method that all team members apply to the questions, as they come in, to be able to answer them so quickly.

I'm also noting that you've mentioned, a few times, that new employees will be coming on board in 2014, and was just curious to know the methodology behind choosing those who work from Peter's way of thinking. It is certainly different from "the street consensus" , which is a very good thing, but am wondering what new employees will do to the team dynamic, and if the analysis will continue in the same vein.

I;m only curious, and hopefully you don't feel it's an impertinent question, for it certainly isn't meant to be.

Feel free to respond privately, or publicly, at your discretion. (For better or worse, I'm always the one pulling the curtain, to see what Oz looks like behind the scenes.)

Thanks so much for your great service!

Q: Happy New Year 5I Team. Would you give some insight into how the US ecomony may fair this coming year? Do you see the Canadian Dollar losing strength against the US Dollar?

Q: Hi,
what's a good amount of $$$ to invest in a stock split like TD?

Do you have an opinion on
1) AXX
2) PPY

Q: I am a brand new member (Canada) and would like to open a self-directed TFSA account. Can I choose my own investment combination (eg. pick my own stocks)?
Many thanks.

Q: Hello,

I have the following portfolio in my TFSA account (about $13000 worth): Canadian Oil Sands (COS), Manulife Financial (MFC), Whitecap Petroleum (WCP), Intel Corp (INTC) and Templeton Global Income fund (GIM).
I also have the following stocks in an investment account (about $10000): Imperial Oil (IMO) and Sun Life (SLF)
In my RSP account so far I have only one ETF (CEW) about $5500 worth
Can you give me suggestions to improve my portfolio considering the long term, some good divident paying stocks/etfs which have long term growth prospects. Please also let me know which of the existing stocks I should sell.

Also is there any particular good time of the year to buy/sell stock. In my limited knowledge my general observation is I see are that stocks tend to dip in the month for March to May . I am not sure why. . So it seems that Jan Feb may be a good time to sell the ones which I should sell. Does this logic make sense? Thanks

Q: I am holding 3 pipelines:
ENB - 7% of portfolio
IPL - 6.4% of portfolio
PPL - 5.7% of portfolio
Balance of portfolio is very diversified.

In your opinion (which I value greatly) am I OK with these 3 pipelines of is it over weight. If I were to trim 1 pipeline which one should go.

Thank You as always.

Q: You have mentioned that we should pay attention to companies that start paying a dividend. Where can we find that information for TSX or S&P companies? And secondly, I would like to thank 5i for setting a new era of investing advice in Canada!

Q: Congratulations to the 5i team. This morning's Financial Post lists the five best performers in 2013. Two of them - VRX and MGA - are in the portfolio.

I have been a member for only a short while and already I have a lot more confidence - I had a great December. Thank you for that, too

I very much like STN and intend to buy as soon as the distribution phase works itself out.

Q: Can you recommend a conflict-free research firm like yours that specializes in U.S. stocks?

Q: Gentlemen,
Is Italie possible to suggest 2 or 3 shares for your sectors suggestion
Industrial 15%
Materials 15%
Cons. Discretionary 10%
Cons. Staples 5%
Utilities 5%
Financial 15%
Energy 10%
Info Tech 15%
Telecom 5%
HealthCare 5%
Thanks a lot
All the best to I5 team

Q: I have a follow up question on your answer to Micheal.If you decide to drop a company from your portfolio,would the volume of 5i members selling have an effect on the stock?I have seen buy or sell recommendations on BNN have a significant affect on a stocks price.Thanks Terry

Q: Hi Peter.

I am a new subscriber and have enjoyed reading the great information and questions and responses in your news letter. My question is with regard to your Portfolio. It has done extremely well since March and I like the stock picks. I would like to invest in some of these companies but I do not know if I have missed the run up. Is there any indicator that would assist a new investor to the stocks and the portfolio to know whether this is still a stock to buy or just to hold? Thanks and I look forward to your response.

Michael

Q: Happy New Year. Please provide your top 3 candidates in each of the following TSX sectors - Industrial, Cons. Discretionary, Cons. Staples and Info Tech. Thanks for the wonderful service. Best, Don

Q: I'm pushing 81, my wife is 66. We have CM, CPG, TRP in my TFSA and BNS,CPG,and IPL in hers. What can you suggest for this year? We are more interested in safety, dividends and drips but we would like to keep up with future inflation, so reasonable growth would be welcome.

Q: It seems advisors claim that as the economy recovers 'cyclical' stock will do better: what does this mean--- which are the cyclicals and in which order do they 'rotate'? What is now hot and which will be next and how do experts determine which will come next so as to accumulate and wait for a 'breakout'

Could you please answer and comment. Thanks!

Q: Hi 5i,
You often point out that your investing philosophy is to buy into strength. I assume you mean that you buy stocks that have already performed well for some time. My question is as follows: what's the difference between buying into strength and "chasing heat" which a lot of commentators advise against doing? Thanks for the great work you do.
Robert

Q: Hi: Re: Symbol Question - Answer Symbol shown but the full name of the stock is not. I have addressed this issue before, and I notice that you were always putting the stock name in the answer. I now see that you are no longer doing that. I feel that others can also benefit from you showing the full name in the Answer.

Happy New Year.

Q: Dear 5i,

Quick question about the Model Portfolio: in the column where you show the Return % in the particular month the report is for, do you include a dividend payment in that if one was received in that month?

Thanks and great work!

Q: Our portfolios are now fully in my control, and with your incredible assistance and advice, I am confident that we are going to be just fine. No more sleepless nights.
All the best to you and your team in the New Year.
Thank you for your wonderful service. I salute you.
Happy New Year.