Q: Hi Everyone at 5i! My advisor is suggesting that I invest in a “Note” which invests in Canadian large cap stocks, pays 3.4% for two years, with 50% downside protection. These things leave me a bit leery. What’s the catch??? I keep trying to avoid them and she says I am missing a good deal and gets a bit annoyed. Could you please explain to me again why these are usually not a good deal? I am short on comeback lines when talking to her. Thanks, Tamara
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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: I am currently in process with increasing the US$ in my TFSA. I have two questions:
1) Which "stable" stocks would you recommend to do a Norbert's Gambit. I understand it takes a couple of processing days before being able to sell the stock on the US side.
2) I have a few dividend paying stocks that are both on the TSX and NYSE - (CP, MLF, BNS). While they are Canadian domiciled, I'm curious if moving them to the NYSE causes the 15% withholding tax to kick in. I would like to keep them in a US TFSA so that I can trim/sell and reinvest in US $ but only if it makes sense. My intention is to buy US growth stocks in my TFSA moving forward (no dividend), eventually converting it into a 100% growth portfolio to maximize the account.
Thanks!
1) Which "stable" stocks would you recommend to do a Norbert's Gambit. I understand it takes a couple of processing days before being able to sell the stock on the US side.
2) I have a few dividend paying stocks that are both on the TSX and NYSE - (CP, MLF, BNS). While they are Canadian domiciled, I'm curious if moving them to the NYSE causes the 15% withholding tax to kick in. I would like to keep them in a US TFSA so that I can trim/sell and reinvest in US $ but only if it makes sense. My intention is to buy US growth stocks in my TFSA moving forward (no dividend), eventually converting it into a 100% growth portfolio to maximize the account.
Thanks!
Q: After reading a previous question about Bam.a and which account to place it. You suggested TFSA or non-registered where it is a growth name. I’m wondering of the 3 accounts I have regular cash (non-registered), TFSA, RRSP. What types of stocks does your team suggest should go into which account generally?
I was under assumption that a non-registered taxable account would be a good place for High Div stocks, not growth stories. There by eligible dividends be tax free and low capital gains to be actually taxed. Or is growth stocks good for there too because of claiming any possible losses?
Thank you for your clarification
I was under assumption that a non-registered taxable account would be a good place for High Div stocks, not growth stories. There by eligible dividends be tax free and low capital gains to be actually taxed. Or is growth stocks good for there too because of claiming any possible losses?
Thank you for your clarification
Q: has anyone ever done a study that shows whether owning dual-share class companies fares better or worse than single-class? I can't seem to make up my mind on which, if any is better.
On the one hand, it is very democratic that all shareholders have an equal vote, but I can't help but think this leads to short-term quarter-by-quarter pursuits by management that may not benefit the long-term health of a company.
On the other hand, a concentration of voting rights by a small minority of shareholders could disregard the interests of subordinate holders yet allow for better strategic longer-term planning without having to worry about a populist revolt.
Do professional investors prefer one structure vs another?
Do you favour one over the other in general or does it have to be case-by-case?
On the one hand, it is very democratic that all shareholders have an equal vote, but I can't help but think this leads to short-term quarter-by-quarter pursuits by management that may not benefit the long-term health of a company.
On the other hand, a concentration of voting rights by a small minority of shareholders could disregard the interests of subordinate holders yet allow for better strategic longer-term planning without having to worry about a populist revolt.
Do professional investors prefer one structure vs another?
Do you favour one over the other in general or does it have to be case-by-case?
Q: Morning Peter and Team,
The National, a Abu-Dhabi based publication, recently published an article stating that several of Alibab's biggest investors in the States (all institutional investors) had swapped billions of dollars in Alibaba's US shares for Hong Kong-listed stocks to avoid potential sanctions and delistings of big Chinese tech companies.
Please comment on how would the process of delisting Chinese stocks from US markets work and and how likely do you see this coming to fruition? Also should it indeed come to past, what would happen to the shares of Chinese tech stocks that were already bought through the US exchanges prior to delisting taking place?
Finally are there ways where retail investors can access overseas stock markets such as the Hongkong Exchanges (HKEX)?
Best regards and thanks for your help.
The National, a Abu-Dhabi based publication, recently published an article stating that several of Alibab's biggest investors in the States (all institutional investors) had swapped billions of dollars in Alibaba's US shares for Hong Kong-listed stocks to avoid potential sanctions and delistings of big Chinese tech companies.
Please comment on how would the process of delisting Chinese stocks from US markets work and and how likely do you see this coming to fruition? Also should it indeed come to past, what would happen to the shares of Chinese tech stocks that were already bought through the US exchanges prior to delisting taking place?
Finally are there ways where retail investors can access overseas stock markets such as the Hongkong Exchanges (HKEX)?
Best regards and thanks for your help.
Q: Hi guys
Over the long term, do share buybacks not destroy companies value, as it results in negative " Total shareholder Equity"
Maybe General Electric, would be a good example ? but on the other hand McDonalds also employs this strategy, and they are a great company i think, could you offer your opinion on this issue.
Thanks
Over the long term, do share buybacks not destroy companies value, as it results in negative " Total shareholder Equity"
Maybe General Electric, would be a good example ? but on the other hand McDonalds also employs this strategy, and they are a great company i think, could you offer your opinion on this issue.
Thanks
Q: Hi, are you willing to comment on a macro issue of the economy? I am perplexed by the housing market where volume of sales and prices seem to be hitting highs in some Canadian urban centers (not Alberta). Lumber companies are doing well. The long term Covid impact on the economy and jobs seems murky at best. Why is there so much confidence in the Canadian housing market? Due to historically low interest rates and some pent up demand? Federal policies designed to prop up the economy? I keep thinking this is all going to end badly if the jobs aren’t there to pay those mortgages. Appreciate your service. You may post this question publicly if you feel it’s Of general interest.
Q: I buy JAG 5 days ago at $0.86 and to-day it changed to$7.98 and I got profit 827.83.
I also own KRR on 2020-07-19 and 2020-07-31 I got a big profit 386.55% but next
day it went back to normal. I did not understand what happen. Please explain to me.
Thanks for your good services.
I also own KRR on 2020-07-19 and 2020-07-31 I got a big profit 386.55% but next
day it went back to normal. I did not understand what happen. Please explain to me.
Thanks for your good services.
Q: The question and answer section today do not show the company name pertaining to the question, This is very confusing and make me loose interest in continuing reading this section.
I hope this could be corrected very soon
Raouf
I hope this could be corrected very soon
Raouf
Q: Hello 5i,
I just received your article on the Canada Pension Plan fund. Thanks very much for taking the trouble to send that out. One of the things that struck me on the top thirty holdings of this successful fund, is that the only Canadian holding in that category is wsp global. i am wondering the reason why? I am sure that they are close to this organization and have some idea of their plans? Do you think they believe that having this company in the top thirty indicates that they have above average hopes for its future expansion?
thanks
I just received your article on the Canada Pension Plan fund. Thanks very much for taking the trouble to send that out. One of the things that struck me on the top thirty holdings of this successful fund, is that the only Canadian holding in that category is wsp global. i am wondering the reason why? I am sure that they are close to this organization and have some idea of their plans? Do you think they believe that having this company in the top thirty indicates that they have above average hopes for its future expansion?
thanks
Q: Hi group appreciate your knowledge and help. Lets assume the Virus is going to get much worse in both Canada and the US this fall. What 3 stocks/sectors would you be buying now (both Canada and US and reasons why . Thanks
Q: When a company goes fro TSXV. to TSX what is advantage.
Jim.
Jim.
Q: General question on asset allocation. I'm an income investor that is planning to live off distributions in the future. Portfolio analysis shows that I'm underweight in technology by about 8%. I'm overweight in the traditional dividend areas (financials, utilities ect).
With so few technology companies that pay decent dividends, does it make sense to stretch and pick a few for diversity when much more stable dividend payers exist in the sectors I'm overweight in? It would appear to me that there is some risk here in diversifying?
Thanks,
Joe
With so few technology companies that pay decent dividends, does it make sense to stretch and pick a few for diversity when much more stable dividend payers exist in the sectors I'm overweight in? It would appear to me that there is some risk here in diversifying?
Thanks,
Joe
Q: Peter,
I came across the following share certificates. Does your research sources show anything re what happened to these companies ?
Tyon Gold Mines Limited - 1000 shares - August 14,1947
Norpax Nickel Mines Limited 1,500 shares Jan 8,1962
Crowpat Minerals Limited - 1,000 shares Jan 8,1962.
They were each issued from trust companies located in Toronto.
Thank you
Paul
I came across the following share certificates. Does your research sources show anything re what happened to these companies ?
Tyon Gold Mines Limited - 1000 shares - August 14,1947
Norpax Nickel Mines Limited 1,500 shares Jan 8,1962
Crowpat Minerals Limited - 1,000 shares Jan 8,1962.
They were each issued from trust companies located in Toronto.
Thank you
Paul
Q: In answer to Paul's question re free on-line stock screener for Euro dividend payers, you can refer him to the post "Euro Dividend Payers" in the Forums. Hope that helps.
https://www.5iresearch.ca/forums/viewthread/368
https://www.5iresearch.ca/forums/viewthread/368
Q: Hi, I cannot find the list of companies you provide increasing dividends? Could you please advise where to find it on your site? Thanks.
Q: Would you be able to tell me if there is a free on-line stock screener available in order to find European dividend paying companies?
Thanks!
Paul
Thanks!
Paul
Q: I would like to thank Paul L for his reference on August 10th to a Seeking Alpha article about factor investing. I have since read both the Seeking Alpha article and the associated book "Your Complete Guide to Factor-Based Investing" by Andrew Berkin and Larry Swedroe.
This book contains historical charts which plot the premiums over time for the main factors (i.e. market beta, size, value, momentum, profitability and quality). Based on these charts, it appears that factors work for several years before their success switches to its opposite factor (e.g. value outperforms for a number of years, then there is a switch, and growth outperforms). Given that the factors outperform for a number of years, the charts can be viewed as long-term trend charts. On these long-term charts, it appears fairly easy to see when the switchover takes place. Unfortunately, the charts in the book only cover the period of 1927 to 2015.
Do you know where I can find updated chart information which clearly shows factor premiums? I would like to understand which factors are "working" now, and where they are in the cycle so that I can properly position for any switchover. For example, although value and size outperformed in the decade of 2000, for the last several years, large US growth firms are dominant. On a long term factor chart, based on historicals, it may be possible to predict when the switchover will take place again, and a portfolio should be positioned for small, value stocks.
Do you agree with this approach? Do you know where I can find this information?
Thank you for this excellent service.
This book contains historical charts which plot the premiums over time for the main factors (i.e. market beta, size, value, momentum, profitability and quality). Based on these charts, it appears that factors work for several years before their success switches to its opposite factor (e.g. value outperforms for a number of years, then there is a switch, and growth outperforms). Given that the factors outperform for a number of years, the charts can be viewed as long-term trend charts. On these long-term charts, it appears fairly easy to see when the switchover takes place. Unfortunately, the charts in the book only cover the period of 1927 to 2015.
Do you know where I can find updated chart information which clearly shows factor premiums? I would like to understand which factors are "working" now, and where they are in the cycle so that I can properly position for any switchover. For example, although value and size outperformed in the decade of 2000, for the last several years, large US growth firms are dominant. On a long term factor chart, based on historicals, it may be possible to predict when the switchover will take place again, and a portfolio should be positioned for small, value stocks.
Do you agree with this approach? Do you know where I can find this information?
Thank you for this excellent service.
Q: Further to ma's question and our answer concerning what constitutes a bubble: "Joe Kennedy, a famous rich guy in his day, exited the stock market in timely fashion after a shoeshine boy gave him some stock tips. He figured that when the shoeshine boys have tips, the market is too popular for its own good..."
Interestingly, that article was from April 1996. They were onto something, but it took another four years...
https://archive.fortune.com/magazines/fortune/fortune_archive/1996/04/15/211503/index.htm
Interestingly, that article was from April 1996. They were onto something, but it took another four years...
https://archive.fortune.com/magazines/fortune/fortune_archive/1996/04/15/211503/index.htm
Q: Hi 5i,
I would like to understand how to identify Canadian's stock market in bubble or not.
I have verified the current data with Bloomberg for S&P/TSX Composite Index, P/E Ratio: 24.12, Price to Book Ratio: 1.734. In your experience, what PE or Book Ratio will consider in bubble. Perhaps, any suggest method may better help to identify in bubble?
I would like to understand how to identify Canadian's stock market in bubble or not.
I have verified the current data with Bloomberg for S&P/TSX Composite Index, P/E Ratio: 24.12, Price to Book Ratio: 1.734. In your experience, what PE or Book Ratio will consider in bubble. Perhaps, any suggest method may better help to identify in bubble?