Investment Q&A

Q: Thank you so much for the question section. It has become a daily read for me and has shown me different ways to look at my investments. This section is priceless.

Q: Expectation of higher interest rates:
1. Is this an accurate statement (or likely to be): As interest rates rise, REITS, bonds and similar equity investments will drop in price while insurance companies will see share price increases.
2. If that is correct, why will higher interest rates help insurance companies?
3. Would banks see a positive effect as well?
4. Any other likely beneficiaries?

Thank you so much for this great service.

Q: Hi. I've been a member for 4 months and am happy to say you've already helped me make some money...both from buying better companies, and holding onto gains longer. Thanks very much, and I intend to stay with this service for a long time! It's a great service!

Having said that, can you help clarify how you remain 'conflict free'? I'm sure over the years that you, Peter, and your staff have managed to accumulate some investable wealth, yet you don't invest in the stocks you talk about. So what do you invest in? I know you don't have your money sitting in a bank account earning less than 1%.

In the FAQ section it does say your staff can invest in US stocks. While you do make it clear that Canadian stocks are your focus, there are numerous questions and answers regarding US stocks as well. If there was a question on a US stock that you or your staff owns, would you decline to comment or mention that you own it? Care to share with us which US companies are currently owned?

Much appreciated...love the service!
Ian

Q: Thank you Peter and Team for an excellent service.
Regarding John's question on DHX stock price decline, I'm starting to notice that days or weeks after this seemingly unjustified pattern starts, a company releases quarterly earnings results that fail to meet analysts expectations. Two recent examples, Q2 earnings for KBL 8/9/13 and TOU 8/7/13. Note the decline prior to the release. To me this might imply information leaked ahead of earnings release. I may be wrong but will be waiting for DHX's results.

Q: Just wanted to thank you for your fantastic service! I signed up June 24. After looking at your recommendations I bought 5 stocks.
All are up! BAD +12%, MG +21%, VRX +18%, STN +16% and added to my CGX holding another +15%. Great work and again thanks.

Q: I recently placed an order for a TSX listed stock that announced very good earnings. The stock was increasing in the afternoon after the earnings report and I placed a market price order after the market was closed. I did not list a specific price because the stock price was a moving target. The next day, the stock opened at a much higher price (which was my purchase price) and continued to decline significantly during the day. Not wanting to repeat this scenario again, I would appreciate your comments.

Q: Peter please comment on the alleged, or true, China Real Estate bubble. I was watching 60 minutes and HBO Vice and they both showed and reported so called "Ghost Cities" being built in China BUT are empty. According to these programs the Chinese people are NOT allowed to trade stocks, as we do, so pile all their money into speculative Real Estate and that is driving their economy. What are your comments on it bursting? when? and the effect on the world and Canada?
Thanks.

Q: Hi to all.. just a question about stock screeners for Canadian stocks. Who or where would you suggest has a good stock screener for Cdn stocks? Thanks for all your work!

Q: Do you plan on having a model portfolio for US companies for those of us who like diversification outside Canada?

Thanks

Q: Should an investor consider seasonality when purchasing 1) Gold stocks, 2) Energy stocks, 3) other stocks? thank you Alan

Q: Hi ,
When a company puts out a news release stating they have hired a company for financial advisory services in relation to potential strategic relationships, combinations and transactions to enhance commercialization efforts
What exactly does the financial advisory service company do ?
(news release on TMD July 16th is an example)
Thanks
David

Q: In the past I have been burned buying stocks that are breaking out into new highs after they have already had a great run. My old inclination of searching for undervalued companies when they are unloved, and catching a run early, is hard to shake. Do you believe any of your portfolio picks are in the early stages of a nice climb, just as MG was 9 months ago and/or how much more upside can you see in something like Magna? - Thanks.

Q: Hi Peter
I was wondering if you could explain what negative retained earnings reflects.
I was looking at a company with Total Assets of 69.5 Million
Total Liabilities of 13.5 Million. The company has Negative 83 Million in Retained earnings? I'm lost on this.

Thanks Gord

Q: G - Is there any relationship to the price of oil and the price of gold? Do they tend to move in tandem?

Q: How did you choose your model portfolio from your summary list? Is it an issue of diversification? Your model portfolio has 20 securities and based on a total of $ 100,000. If I wanted to invest $ 500,000, do I just simply multiply everything by 5? or do you suggest that I choose others from you summary list keeping the diversification issue in check?

Thanks

Q: Good day all,

No question, just a note that Peter is the guest on BNN's Market Call Tonight on Tues August 13 @ 6 pm (ET). Enjoy.

mz

Q: re Saad question
My wife entered the market for the first time in march 2009 with a full service broker.
A performance review lately showed a profit of 16%, not per year, for the entire period. The broker was VERY proud of the performance...
I have been looking for a broker for the better part of the past 15 years for my own portfolio, fired one and WAS fired by another one, gave up and manage everything myself. Peter entry in the retail investor world void of real/unbised information has been a breath of fresh air and provide a much needed support. But I think I still have to do my homework.

Q: Peter and Team,

Here is a question about bonds. Let's say you buy bonds of a major Canadian, credit-worthy company that mature in 2015. Let's also say that interest rates keep backing up (thinking of US 10 year) way past everyone's expectations during that time.

Is it correct to assume that, while the value of the bond you are holding goes down in the market, you get all of your money back at the maturity date in 2015? Therefore, if you hold to maturity and the company is still around, the back up in interest rates does not hurt your capital invested?

Thanks... let me know if that didn't make sense.

Q: Hi Peter:
In my on-RRSP portfolio, I have some money in XRE and some
Reits and the Canadian banks, BCE, and the pipelines

I still have some cash to be invested and I am looking for
a steady source of income (age around 60); for this purpose
someone give me a suggestion:
1) CPD a prefer ETF
2) XDV (it generates dividends)
3) a floating rate prefer ETF (I could not find the symbol)
4) BMO covered call utilities
5) BMO covered call banks ZWB

How would you compare to the above when I put the 5 investmensts in the
ETF XTR ? (it has bonds in it)

Thanks!

Q: Hi Peter:

I have been managing my own portfolio for over 30 years. It is now more than seven figures value. I am reaching a stage where the number of stocks and mutual funds are exceeding my capacity to monitor them. I tried several discretionary managers and to my disappointments none of them made me any decent return. The best of them had a total return of 7% over 4 years period. I am either selecting the wrong ones or had high expectations.

I have two thoughts, one is to migrate half my portfolio to your model portfolio and manage the other half myself. The other thought is to find a manager that can review my portfolio on a periodic basis and suggest changes “for a fee of course” but don’t know how to find them.

Any suggestions,

Thanks