Investment Q&A

Q: As we progress through the dog days of summer and possibly approach the winter of our discontent, the number of questions being asked of 5i seem to be lower at this time. Is this a summertime normal occurrence? Otherwise, is it possible that the number of questions asked day by day could be a useful metric of investor interest in the stock markets. If so, then as the number of questions increase, could this indicate that the market is in the road to recovery. This would not be a “bet the farm” metric but would appreciate your thoughts on the matter.
Thanks for your valuable service.
Cyril

Q: I recently read that Wealthsimple was firing staff and cutting back on some services. I do use Wealthsimple Trade and have been very happy with its simplicity and ease of use. Should an investor be concerned about bankruptcy for a firm like Wealthsimple as opposed to investing/trading with a bank like National Bank or one of the big banks ?

Q: From my years of investing, I can say that whenever I take a position larger than 5% of my portfolio, I have come to regret it. The larger position occurs either because I averaged down or became so enamoured by the company that I bought more shares. There are so many unknowables about a company that is not run by yourself, that pleasant and surprising adverse events are equally possible. The beauty of the stock market is that you can invest in 20 good conviction companies at 5% position each and really limit the damage of the adverse events. And if you can't find 20, keep the powder dry for the next nice find.

Q: New retiree caught with pants down. Need to sell some stuff in RIF to cover current cash needs. Horrible position to be in with current market. Lesson learnt. Maybe (tough to be on the sidelines in a bull market)
Please help with sell sequence, which I guess should be based on which of these holdings is least likely to see near term growth from here OR which is most susceptible to further declines in near future??

Please list in order starting with the holdings you think should be sold first, ending with the holdings you think should be retained longest, and advise your rationale. All will need to be liquidated by mid 2023

Your crystal ball will be better than mine.

Thanks,

Jim

Q: Hi Peter and team,

What is the reason(s) for the excitement in the market this week? Do you think the sentiment was changed fundamentally this time?

Best,
Matt

Q: Hi 5i,
this question is about stock Beta and standard deviation.
Do you think these metrics hve practical use?
If yes, which stock Beta and Standard Dev. would you typically use (3 Years?).
Do you know where I might find 1, 2, 3, 4 and 5 year metrics for these.
Your web site reports Beta but, what year is it reporting?

Q: Why would anyone buy Advantex Marketing International Inc? It has zero employees, it has a P/E of -0.3, no dividend nor potential of a dividend. And yet the stock seems to be trading, all-be-it between 1 and 1.5 cents a share. What could people possibly be hoping for when buying this stock?

Q: Hi,
I find it useful for me to monitor certain ETF ratios as a way of seeing whether or not rotation is taking place - such as: IWF:IWD - to see if growth is being favoured over value, as an example.
I have a harder time understanding the concept of 'credit spread' with regards to the bond market and am wondering if there might be a pair of ETF's that could be used in a similar way to show a ratio that indicates whether or not corporate or junk bonds are being favoured - possibly LQD:JNK?
Is looking at a ratio such as this a good way to track it? Would it be better to just monitor the difference, as a percentage, between the two ETF's over time?
I'm open to your wise counsel, as this isn't an area I have any expertise in - and I am finding it hard to educate myself on it with any confidence in some of what I am reading on the wilds of the internet.
If you feel this is something to benefit others, feel free to make it public.
Thank you,
Dawn

Q: Hi 5i,
Do you know where one might find several years worth of MFRP's for Canadian listed ETF's? I can find last years and current year but no others.
I am interested in seeing how the sector allocations have changed over the last 5 years for VDY.TO and XEI.TO ETF's. Hope you can help.

Q: Is there a good reference site that provides current forward consensus estimates of the Bank of Canada 5 year Bond Yield over the forward rolling 5 year term?

When trying to estimate/guesstimate forward BOC-5 rates for preferred resets do you have any suggestions on how to reasonably estimate BOC rates? I know rates change and forecasts are subject to unknowns but I'm looking for a reasonable tool to use estimates of future reset dates.

ie. current consensus for Apr.30/2023, December 31/2024

Q: Hi

You have previously ok’d JEPI as an income etf.
I already own JEPI and am considering JEPQ. As you have pointed out upside is capped due to the covered calls. BUT I like the income stream.

Would JEPQ be a good complement to JEPI?

And are the payouts something that can be counted on …. Barring some unforeseen calamity ?

Thanks.

Q: Just curious your thoughts on getting tech exposure. Could you please provide your preference (not individual names) on a basic etf like TEC or the covered call strategy? Pros and Cons of each one if you could please.

Q: I think it could be helpful to have timely access to insider trading - would you agree? Is canadianinsider.com a reputable source? I went to their website and it is cluttered with advertisements and looks a bit bogus.
Thanks for your comments!!

Q: In your article Stock VS Bonds you wrote:
Investors theoretically should have an exit target price in mind when making a purchase.
Can you explain this a bit more? Would you give an example? Maybe with SU?

Q: In your reply to the Dan’s June 27 question concerning NTR you said NTR is much larger, and much cheaper (4X earnings). When I look in your Market Data section I see no reference to 4X earnings for NTR. How was the number determined & where in the NTR’s market data do I look for that number. Thanks … Cal

Q: Hi Peter, Ryan and 5i team
Our financial advisor is changing from a non discretionary advisor to a discretionary advisor. We understand that it will allow him to buy and sell securities without our consent allowing for quicker action. Is there any advantage to this type of portfolio. The fee structure will be going up from 1 % to 1.15%.
Is it fair that the fee structure will be going up?
Thank you for your opinion

Q: any comments on class action? Being down 78% should i simply join in to try to recoup part of the loss. I realize you, partners etc... still own shares but trust your opinion.
thanks
Sherrill

Q: I own above ETF’s in a non taxable accounts for the purpose of relative stability and diversification. I am looking now for the next 12 to 18 months and thinking of concentrating on the Canadian market (VDY) for better return in the medium term.
I value as always your opinion.
Raouf

Q: Is there a website where I could track 1. the yield above inflation for Canadian real return bonds. 2. the yield above Canada bonds for Canadian investment grade corporate bonds.

Q: Hi, I have very small positions in each of these. Do you think it makes sense to sell STC ANRG and WELL to add to DND and CTS ? I view them as «safer» compagnies if a recession comes and they have as much long term upside potential as the others. What are your thoughts ? Thank you.