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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Are there any blogs, magazines, papers, etc that you recommend for an investor to keep up to date or get new ideas? I have found than many of the sites/periodicals that I used to read/watch have become very politicized and are pushing either a far left or far right agenda. (I would love to go a full day without someone talking about Trump). I still like to check on what stocks Mawer and PHN are holding in their funds, but beyond that I feel so many people are just pushing agendas.
Read Answer Asked by Edward on January 25, 2021
Q: Good morning all,

To add to the discussion/confusion about CDIC insurance (Pierre's question of Jan 21 and James comment Jan 25) - I have Cash, TFSA and RRSP accounts at TD. I was informed that in order to get CDIC coverage on more than $!00,000 in the Cash account they have several CDN$ options, TDB8150 which is TD Bank, TDB8155 which is TD Mortgage Corp and TDB8159 which is Canada Trust Corp. Was I misinformed?
Read Answer Asked on January 25, 2021
Q: Hi fabulous team,

I saw this under some answer:
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in PLTR.
Does that means some of your team owns the stock?

Thanks!
Read Answer Asked by Jinlong on January 25, 2021
Q: Hi team- would appreciate any book/ reading recommendations you can offer for an investor looking to gain knowledge on options trading and option strategies
Thank you!
Read Answer Asked by Kyle on January 25, 2021
Q: So my question is a general one and maybe kind of dumb since I'm far from an expert. But why is it that I wake up some mornings and the market is up 250 points - or down 250 points before it's even opened? I get that there's a limited number of people who can do 'pre-market' trading. And that this trading is very thin. This means a very few trades can have an outsized influence on the market. But how is it this can set the tone for the day, with almost everything being down or up 250 points at the start? This rarely reverses, so it seems like what people do in the daytime has less influence on the market than these nighttime or early morning traders. If there's some huge event overnight I could understand, but some mornings I wake up and gold is down, bitcoin is down, commodities and oil are down, and all the markets, from high flying tech to utilities are way down, for no understandable reason.
Read Answer Asked by John on January 25, 2021
Q: Should investors change their goalpost metrics of valuing companies when investing?
Nowadays many complain about seemingly high valuations of many companies.

In the past, companies with a high P/E ratio would raise alarms - now it seems it's de rigeur - Apple has a P/E ratio of 43 for example! Does this go hand-in-had with investors accepting very low interest rates?

At first I thought it crazy that a company like Apple would earn $1 for every $43 dollars of share price but then realaized the US 10yr treasury currently gives me $1.09 for every $100 of principal .

Should the yardstick of what constitutes fair value be changed in light of these lower interest rates?

I know there are many ways to value companies but what would you say would be a 'fair' P/E ratio nowadays? Benjamin Graham had a formula and I'd like to see your opinion.
Read Answer Asked by Neelesh on January 25, 2021
Q: In general, concerning Canadian Cies doing business in the USA: how to explain why some Cies allow the dividend tax credit for Canadian stockowners (ex EMA), and why other Cies (ex: WIR.UN) do not offer this advantage?
Read Answer Asked by Jean-Yves on January 22, 2021
Q: Two questions I use Waterhouse for trading and a day trade told me that their quotes are delayed and he use a quicker more recent quote for trades. Is there somewhere else I should be going to view more current bid and asks for trading

Why are there not more take over deals with such record low interest rates? Are banks not supporting deals?
Read Answer Asked by mike on January 21, 2021
Q: If you have a $90,000 GIC and a $90,000 High Interest Saving Account at the same financial institution, are both accounts insured by CDIC (for $100,000 each)? Thank you.
Read Answer Asked by Pierre on January 21, 2021
Q: Hello! Wondering if you still like TMX group and Thompson Reuters. They both seem to be trading sideways when many stocks are gaining. As well, I know you really like BAM but this too, has been heading lower when many stocks like financials and insurers are going higher. In a diversified portfolio is it better to have a mix of different companies and just be patient with stocks that are doing nothing, as opposed to selling those (which may have potential) and moving into something like TD or SLF which seem to have more momentum right now. Dividends and growth are my objectives. Thank you!
Read Answer Asked by Neil on January 20, 2021
Q: Hello 5i
I have a 5 year GSC ladder in my TFSA with $10,000 dollars a year. Each year I get about $1000 to $1300 inerest and turn over the principle. In my TFSA I also have the growth stocks of Lightspeed and Leon's which make up 6% of my equity. The rest, as a value investor primarily are mostly dividend paying blue chip in a well diversified, balanced portfolio 60% equities 40% cash and bond ETF's. I am 73 with good pension.
My question is: Should |I keep the GSC ladder which is a warm, fuzzy security blanket or by stuff like SHOP and NVIDIA or other suggested growth stock?
Stanley
Read Answer Asked by STANLEY on January 20, 2021
Q: Warren Buffett says when it comes to investing there are two questions to answer: what company and what price? When I watch the financial media the 'experts' always have a ton of stocks to buy, and give their crystal ball reasons why, but never give the intrinsic value of the stock, or talk about the margin of safety. Do the 'experts' just believe all their stock picks will go up? :)
Read Answer Asked by Edward on January 20, 2021
Q: I am setting up a long term portfolio for my 35 year old daughter. She will have 480,000 to invest. On a previous question, re the top picks from your portfolios in 2017, and your top picks presently, you now suggested ATZ, BAM ,BYD, GSY, KXS, LNF, LSPD, MG, REAL, SHOP, WEll. XBC. I am thinking to buy equal weightings of 40,000. Any advice?
Read Answer Asked by Allan on January 19, 2021
Q: Re: Dustin's question today on a good place to park some cash - Tangerine Bank (a subsidiary of BNS) is still offering 2.1% for 5 months if you open up a savings and checking account (Max is $1 mln). I am building a house and have and set up accounts in October - very easy to do and transferring cash back and forth (to RBC in may case) is very easy. Only small issue I have encountered is the $50,000 daily max for transferring funds back to RBC.
Read Answer Asked by Gary on January 19, 2021
Q: In a response to a question asked on Friday you said “ For direct bitcoin exposure, we prefer the current Trusts that have been set up, such as GBTC and QBTC.”
What do you think of Wealthsimple as a way to buy cryptocurrency? They offer Bitcoin and Ethereum . I do not know what kind of fees they take.
Read Answer Asked by David on January 19, 2021
Q: Hi there, regarding the EV space, yes the frenzy continues, however, do you see it with more legs to run in the near term, say three to six months? Will stimulus spending continue to assist the EV space, considering the new US administrations go green policies to come?
Considering your previous experiences, can you see the EV space cooling off in the short term with profit taking, or do you see it still running hard for now, based on what you see in the markets today?
Any favorites today? Any you like that still look as though they have some value left in them?
Thanks!
Read Answer Asked by Hussein on January 18, 2021