Investment Q&A

Q: oh Ross Healey....on Market Call.......yes Garth and another person, everyone has an opinion but Ross's is like outside the standard deviation and by a wide margin me, surprised BNNBloomberg invites the "heel" onto the show
I'll take 5IR anytime.......Tom

Q: Hi 5i,

In a recent newsletter by Richard Bernstein Associates they talk about a coming paradigm shift for investing in the next decade. They talk about the breakdown of globalization and the persistence of higher inflation and that asset class leadership will change.

They suggest the new paradigm will be to move away from long-duration assets (i.e. growth, technology, cryptocurrencies, residential real estate, and long term fixed-income) and that the longer term opportunities are in pro-inflation assets such as energy, materials, industrials, commodities, commodity related countries, gold and some real estate assets.

Question 1
I know no one can predict the future of the markets but I am interested in getting your thoughts on their paradigm shift idea?

Question 2
How would this paradigm shift be viewed through the lens of an ESG type of investor (i.e. someone that doesn't want to invest in fossil fuels, companies that wreak havoc on the environment, etc.?)

Thanks!

Q: Thinking about purchasing a little bit of these before the split. If I were to buy the CDR version in Canadian funds, on the NEO Exchange, would I still get some kind of split, or would they not be eligible? Also, is there any big disadvantage to buying the CDR version? Thanks so much…

Q: Which stocks do you currently have a A or A- rating on?

Q: Could you explain the selling At the market program announced and effect on stock price

Q: I saw your response to Kim re Peter's presentation. I am not a TD client and don't intend to be.

How do those not with TD get to see the replay?


Sheldon

Q: For anyone wanting to access Peter's webinar, it is on the TD website now. You should be able to access it by going to:

https://www.td.com/ca/products-services/investing/td-direct-investing/investor-education/webinars.jsp

scroll down to "Five Factors to Consider in Small Cap Stocks" and register.

Third party cookies must be enabled.

Q: I was unable to watch Peter's webinar yesterday - is it still available somewhere? Thanks!

Q: Bonjour, my broker suggested an ETF with very low trading volume. But she said that the volume was actually much bigger. Is it because of in-house market or transactions between brokers that do not show on regular exchanges? Not knowing bid/ask, I’m somewhat wary of not getting a fair price for what I buy or sell. I would much prefer an ETF with some steady volume. Comments please.

Q: I would like to get 5iR thoughts on the following March 31, BEI.UN trading activity. BEI.UN high for the day was 59.11. At 3:49 PM the price was 59.00, volume 200. At 3:53 I bought 140 shares at 58.80. Between 3:53 & 3:59 the price varied between 58.78 & 58.87 with individuals volumes less than 1000. Then just before 4:00, 69,000 shares were sold & bought at 58.79.

So my question is, what is 5iR thoughts on why, just before the market closes, shares of BEI.UN previously trading at volumes less than 1,000 shares per trade, an investor sells 69,000 shares (much more than previous individual trades) at a price close to the day’s low. I know you can’t exactly know the sellers thinking, but do you have any thoughts on the seller’s strategy. (69,000 x 58.79 = $4,056,510) Thanks … Cal

Q: Any chance there will be access to an archived version of Mr. Hodson's presentation tomorrow? I am unable to attend.
Thank-you,
Cal

Q: Hi 5i.
Thanks for your continuing great service.

I am trying to find a way to hold US stocks without being subject to US Estate Tax or the need for T1135 tracking.

Are CDRs on US stocks subject to US Estate Tax?

Are CDRs on US stocks subject to T1135 reporting?

Are there other vehicles, besides selected Canadian- company-managed ETFs, that enable ownership of US stocks without exposure to US Estate Tax or T1135 exposure?

Which Canadian companies managing US stock EFTs are not subject to these issues?

Are the Canadian branches of US companies that manage US stock EFTs deemed by CRA to be US or Canadian?

Any additional comments or suggestions that you may have on these topics would be greatly appreciated.

Please deduct as many question credits as appropriate.

Many thanks !

Q: What is Norbert’s Gambit? I have read about it but don't fully understand it.

Would you recommend an inexperienced investor use this to buy US stocks?

Thank you.

Q: I have $ 300 K US to invest . Can you suggest safe investments that would be covered by CDIC. My time frame is 1-3 years. Thanks

Q: Regarding shorting stock….
What is the typical fee to short/borrow stock.
Is there a maximum timeframe to hold short positions.
Is there a float % of shares that shorters can hold.
Is there a total maximum number of shares that are available to be shorted.
Thank you

Q: Hi 5i
As we all know, growth companies need to maintain strong growth to justify their valuations. In looking at some past answers, I am not clear if you prefer earnings growth or revenue growth as the key metric. For a tech company, what would you consider as a strong earnings growth rate and a strong revenue growth rate? How many years do you look out? Are there any websites that show these projections? I do not believe that your website shows forward looking growth rates, just historical ones.
Thanks again.

Q: When holding Canadian securities in USD accounts that pay dividends in CAD$, do fx charges get applied to convert to USD?

Q: Hi 5i
There are some tenured investors behind the answers at 5i so I wonder how the question of taxation is view.

I have always considered taxation something to avoid where possible (buy and hold) and have worked to find strategies to delay taxation (Registered accounts).

How should taxation fit in the thinking of a long term investor trying to grow wealth and cash flow to enjoy life?

It obviously matters. But in the long run except to keep activity low, there seems to be little an investor can do about it.

Dave

Q: This is a comment more than a question. I find having a lot of US stocks in my portfolio dampens down the volatility. On bad days in the market the flight to safety strengthens the US dollar against the loonie and in good days the exchange rate goes against me the other way and reduces the contribution of my US equities. Over time I find my return is about the same but I sleep better on the way.

Q: I am a recently retired 60 year-old investor who has a DB pension, fairly large RRSP, and wish to hold off CPP until age 70 for maximum benefit.
So based on the above, even with some income-splitting, tax-wise I am going to get taken to the cleaners once I hit my 70's. I am planning to withdraw some RRSP money over the next 10 years in an attempt to lessen the hit.

Generally I am a dividend investor, but the dreaded dividend gross-up does further damage to my situation with regards to the OAS claw-back. I am wondering if I should be adding more of the growth type companies instead (eg. BAM, CSU, FSV) instead of adding to my dividend-paying stocks.

I know you are not tax experts and don't expect any specific advice, but do you have a general opinion on a retiree balancing their mainly dividend portfolio with some growth? I always thought dividends were taxed better than capital gains, but that gross-up is the enemy here.