Investment Q&A

Q: I am interested in trading micro mini contracts and futures for indexes or any other commodities. Do you recommend any brokerage company or can you point out where should I start.

Thanks for your great service.

Q: I am fully invested in my RRIF account and in anticipation of the annual required payout in September, I have to choose what security(ies) to sell to fund the required withdrawal. The choices include current (energy) winners, preferreds with decent dividends, tech and industrial stocks bearing no dividends and most of them under water, or financials and utilities earning good dividends but down from previous highs. Overall, I’m over-weight in financials and energy and under in most all other categories. Also, pull the trigger now given market sentiment or wait until under the gun? Thank you.

Q: Addition to my question for BMO, with such volatile market, please suggest entry price and rationale for Lspd, Nvei, Toi, Cts, Eglx, At, Goog, Amzn, Upst and Apps, many thanks

Q: Seeking clarity on corporate class etfs. Does this structure exist using US dollars and does it exist in the US? Is there any other provider other than Horizons? Does the structure result in dividends being reinvested in the etf thus becoming taxable as a capital gain when the etf is sold and therefore not taxable as dividend income while the etf is held? So does this structure assist an investor who wishes to reduce income for tax purposes during the period the etf is held? THANKS

Q: I would like to get your expert opinion on where you see interest rates headed over the next 5 years? And have your view on stop loss orders changed?
Thanks

Q: Hi Team, what is the difference between buying before or after a split and which is better before or after. Thanks Nick

Q: I own GOOG shares in a US account at 982 US, or converted to Cdn $ at 1,299.97. I also own the GOOG mini shares at 23.35 Cdn$.
Am I correct that I have to add these shares to calculate my ACB, 1299.97+23.35=1,323.32/2=661.66?
Or are the shares considered separate with each having their own ACB?
Thank you. cheers

Q: Hi

TD Bank sells GICs for several other banks. Suppose I purchase two GICs through TD Waterhouse, both for 100K: one held by Homequity Bank and one held by BNS. Is the CDIC insurance limited to 100K since I bought through TD, or would both GICs be covered?

Thanks

Q: Just a reminder that there is some detailed info on Norbert’s Gambit In the forums under the heading Trading & F/X Strategies. Additional entries with newer information are always welcome.

Q: I would like to share our experience with "passive investing" versus self-management. We have part of our portfolio with TD Wealth Management so there is no work involved for us. However, in early 2021 TD Wealth Mgmt decided the US market was going to be better and they shifted 80% of the portfolio to the USA. Not only did this turn out to be a bad decision (Canadian market did better), but the turnover generated over $100K in capital gains and an unexpected $30K tax bill for 2021. Had I being actively managing the account I would have shifted over time and watched my capital gains. ETFs, however, would not have this type of turnover.

Q: there's a big percentage of Canadas population that are between 57 and 64 in the work force that don't have pensions and soon will have to depend on CPP and OAS. Both of which don't amount too much monthly. People will probably have to live in poverty and cash in RRSPs ,if they have any. What affect could all of this have on the stock market in the near future ? Thanks

Q: I am glad you are explaining this new product. Your answer raised two questions for me. 1 There are no withholding taxes for stocks in registered accounts. What about CDRs in registered accounts?

2. If you could give an example of how dollar hedging works. If Canadian dollar loses value, would we not see appreciation in the value of CD-R ? Thanks

Q: Is there a site that gives FCF yields for stocks?

Q: Hello — I noticed that 5i doesn't list AMZN's NEO ticker (AMZN-NE). I am aware that it's not a share but rather a Canadian Depository Receipt on Canada's NEO exchange that sports decent trade volume (~130k)

So, question: what, in your mind, are the chief advantages/disadvantages of buying AMZN CDRs, or *any* CDR, for that matter, as NEO also offers CDRs for MSFT, GOOGL, TSLA, etc.?

Thank you.

Q: Dear5i
I have either ETF or individual stock investments in all the major exchanges
except for the Dow Jones . Do you think it would be prudent to have some Dow representation or is the Tsx , S&P500 and nasdaq sufficient ? I understand that ZDJ is an ETF on the DOW but i`m not sure if being Canadian hedged is a good idea now . Your thoughts ?
Also i know this is a geopolitical question but would appreciate your thoughts .The Ukraine/Russia war seems to be an additional source for supply chain disruption especially with regards to commodities , which in turn drives inflation which in turn drives interest rates higher . My question i guess would be what`s your best guess as to what percentage the war has to do with inflation and rising interest rates . In other words does the war have to come to an end to see any real and sustained improvement in inflation and therefore rising rates ?
As always thanks for your input , much appreciated .
Please deduct the appropriate credits .
Bill C

Q: How much does one actually save using Norbett's Gambit as opposed to simply buying the stock and letting the company convert?

For the sake of simplicity, let's say we're talking about Questrade and that the exchange rate doesn't change over the 5 or so days it takes to process.

Q: If I hold BAM.A in my US account and they proceed with the spin out, will the new entity end in my Canadian account, and do you think there is a generally conversion fee for that?

Thanks.

Q: Is it best to buy before a stock split or after?

Thanks

Q: Is there an analyst that you like. They seem useless as far as price targets go.

Q: From: Asked by Carlo on May 25, 2022
5i Research Answer:

Certainly; we assumed just US stocks when we answered David's question, but if it is just US income that is desired (and not US stock exposure) then Canadian stocks paying US dividends can improve one's after-tax return, depending on an investors' tax rate.

1-Can you explain how US dividends can improve one's after-tax return?
2-Can I just transfer MG (for example) from a Canadian to a US portfolio? Are there any advantage?