Investment Q&A

Q: The brutal war in the Ukraine is expected to cause global food shortages. With the exception of fertilizers, how should a retail investor play this trade?
Thanks for your insights.
Ian

Q: How would you invest 40K USD (which stocks and/or ETF's) in a balanced way, to limit downside risk, but maximize capital appreciation over the next 1-3 years. What timing would you use to make this investment. Thanks

Q: I have no fixed income in any accounts, and I have never traded options.

I keep hearing voices in my head—in the middle of the night— that I should have a healthy allocation to fixed income, AND that I should sell covered calls on securities I love. Problem is I do not know where to start.

How does one even buy bonds? I would appreciate:
1- User-friendly sources for identifying symbols.
2- Similarly, if you would please identify sources where a clueless person learns how to sell covered calls.
3- How to select fixed income : is it only bonds or does the term include PREFERRED SHARES?
4- *When* to buy fixed income. Is now a reasonably good time?
5- Would you buy US bonds or Canadian or both?
6- Is it not better just to buy boring steady companies that pay good growing dividends, companies that chug along "nicely" paying dividend ,without intruding into one’s thoughts at night? At least I understand equities.

5i portfolio analytics scolds me on many things but never on lack of fixed income in my accounts. This strikes me as VERY ODD. Is 5i analytics silent on this because 60-40 appears to have been trashed? Is that even true?

Q: Question on Norbert’s gambit that I’m hoping you know or the community might.

I have a TD RRSP where I accidentally bought Roku in my CAD section of my RRSP. I have a USD portion of the same RRSP, can I have this moved in kind to the USD section?

Thanks!

Q: Hello,

I am looking at buying some corporate bonds for the fixed income portion of my portfolio.

Via my discount brokerage account, I see annual yield between 3% and 4.5% for terms between 3 and 4 years for bonds issued by big banks or Lifeco. If I hold to maturity, am I correct my annual return will be the annual yield?

Also, anything to watch for with these securities? To make my life easier, I was planning on buying a few larger positions to balance my portfolio (as opposed to the typical 7% max stock position for the equiy portion of the portfolio).

Thank you for your help.

Q: Hello,

With GIC rates now getting interesting, would you know if we can benefit within a discount brokerage account (i.e. buy a GIC or similar guarantee product within a trading account).

The idea is to invest the cash balances in my RRSP & TFSA accounts.

Thank you,

Q: Can u explain how buying on margin affects the market? Both upside and downside
Also what part do margins play in the big swings
we have seen in the past few months both on the downside mostly and the upside
Thanks

Q: When a Stock/ETF gives a yield percent, how do you calculate payout? Is it a percent of the present stock price, number of stocks times that percent?

thanks,
Paul

Q: Can you explain the difference between CDIC insurance and CIPF insurance? My understanding was that CDIC insurance covers bank accounts up to $100,000 each, and CIPF insurance covers investment/brokerage accounts, $1M limit each.
If I have $500,000 in my RRSP account with RBC Direct Investing, invested in a mix of Stocks, ETF's, GIC's and Cash, is that all covered under the CIPF insurance?
I'm confused when I see people's questions about trying to spread their money out to stay under the $100,000 limit, when they seem to be talking about investment accounts.... Thank you!

Q: Hello 5i
I hold the above covdered call ETF's as well as at least two individual companies from each (from before I bought these). also have over 10 ETF's that are not cover call. I have 51 positions with 49 stocks. These have performed well during this period of unrest. No they do not hit the high notes but not even close to bottom notes either but steadil;y increase in value aside from the dividends. My question is: with these new covered call ETF's at 12% of my investing portfolio (not including GIC's) might this be considered too much? Each is between 1.5% and 2% of the portfolio as are most of my holdings. The dividends are great and have kept up for the last three months. These also hold great companies that I would hold if I had room (and funds to buy them!) as a value investor. Please take as many credits as required.
Thank you
Stanley

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.