Investment Q&A

Q: I haven t followed the market much in the last 3 months or so but i wonder what has really changed (growth story, oil output, china, somewhat rich valuation) and when i see the S&p500 almost at all time high i wonder about the risk / return in the next 12-24 months and i hesitate to add new money. Can you please comment on the macro picture at the present time and other related comments if any. Thank you.

Q: Can you please advise which ETF is better to hold when market sells off.
Below ETF has to be hold for one /two weeks or I can hold for long time. If below is not right one - Please recommend another ETF.

ETF: HVU OR HUV

Q: Hello, Many Real estate investment trusts(e.g. IVR)and related ETFs (e.g. REM) distribute ~10 to 12% dividend. This appears very good but may be a high risk investment. What is your opinion about IVR REIT and REM etf?. Which one is better? or may be none?

Thanks

Q: Please provide your opinion on purchasing preferred ETF's at the present time, for a one year hold, and which of the following would you prefer and why?.... CPD (Canadian Preferreds), XPF (North American Preferreds), HPR (Actively Managed Preferreds), ZPR (Laddered Preferreds). These funds would be held in a non-registered, fully taxable account. Thanks!

Q: I see oil slipping some what in value. I personal don't see anything that is going to push the price up. ($35.00 - $45.00). So I don't understand the bullish effect on the Canadian Dollar. I would appreciate your option & what the general consensus is. The reason I am asking this is I have U.S. dollars that I was thinking of transferring into cnd. dollars. So my next question is, Do you think the Ontario & Federal budget will send the dollar down in value. Do you know when their
budgets are due.

Q: Peter and His Wonder Team
Just spent too much time writing my question and got stopped out...so I will be brief. In the event of a global financial collapse... because we are drowning in debt... who will survive? How can we prepare...own hard assets like land, gold or silver coins, the minings stocks, be debt free with no mortgage? Are there any sectors which would benefit? Your thoughts please...so I can sleep better! Ha! Ha!
With respect...
Dr.Ernest Rivait

Q: I have very little invested in the Materials Sector.I am currently a growth investor. What stocks and/or ETF would you recommend in this sector?

Thanks again.

Q: I own some of each of these Pfd's...one has the symbol BM in it's name, the other BK...would you be kind enough to make the distinction for me , please and thank you...also if you would comment on their credit quality ...and whether the reset rates in 5 yrs time is the minimum rate or whether the rate is reduced if we have negative interest rates...many thanks ...cheers

Q: I have limited exposure to Europe / Emerging Markets. Do you think it is a good time to invest in either of them and if so how would you do it? What are the best ETFs? Would you use a CAD hedged ETF/am I correct in understanding that buying a CAD hedged ETF would protect against the CAD appreciating?
Thank you as always.

Q: On Feb 26 Tamara submitted a concern about the doom and gloomers and her positive approach to investing in spite of their opinions. We too remain invested: 50% in farm land and 50% in stocks (of this 75% is in blue chip dividend stocks and 25% in higher risk stocks that we are transitioning out of and adding to the blue chip category as we near retirement age). Your guidance on sector allocation has been invaluable.
Of concern to me is this:
1. on a scale of 1-10 where do you rate the potential for a world wide currency collapse. I have read it is not if but when.
2. I cannot get my head around what this would look like. For the average person what would be the impact to daily living. It seems in Canada we remain fairly "sheltered " from physical harm.
3. I have read it is advisable to hold gold for safety in economic uncertainty. So gold stocks or the commodity - actual physical gold? How would one use it to buy what we need daily? That is another thing I can't get my head around. It just seems impractical. How does one buy gold?
4. Which is the better option in this uncertain economic climate: to be fully invested, to hold cash, to hold gold, to hold a combination of these and in what ratio.

We remain positive in the future and fully invested but are we on the right track? Is there something we and other readers should be doing to weather what the world economic factors may send our way. Your comments would be appreciated.
Lou

Q: i just want solid dividend paying companies. id like your take on the economy. are the policy makers playing games with the value of our currency ?id like to hold stocks for long term and let the drips accumalte is this an ok stategy or do i constantly have to have cash and buy gold etc if gold is the next best area what do you recommend

Q: Could you please provide a percentage sector allocation recommendation for a growth portfolio with a time frame of 5 to 10 years.

Q: Good morning...I currently have CDN100,000 to deploy.. about 10% of portfolio...I have the majority of your favorites...I always get anxious with cash and like to be in the market 100%...its hard o have it "parked" when you can get some decent yields...what would be your top 5 income stocks or beaten down others and a good buy/add to...in addition, should i just wait it out for another 30 to 60 days and keep cash? no tax issues whatsoever...Thanks

Q: Can you comment on Vermillions latest quarter?

Q: I have a full position in the major banks and a half position in NA. I sold NA this morning after it dropped $1100, and all the other banks are down big time as well. What hit the fan?

Q: Hi Peter and Team,
The dividend of this stock is 8.2%, I am concerned how substainable it is.
Pls give your insight as to their cash flow, payout ratio and whether their debt level is a concern. Would you think all these are manageable for such a high dividend.
Thank you for your professional advice.

Q: Would you prefer the Xhy bond etf over the us Bond etf because of hedging currency? Or because the yield is higher for income investors? Would pimcos bond etc be more stable?

Q: Hi Team:
Interesting article in Saturday`s Globe about negative interest rates. I have held a # of Cdn
bank stocks for years & have benefited from their dividends & rarely check their stock prices. It is interesting to note the conflicting views in the article concerning the ramifications of going negative. If Canada joins the sub zero fraternity, what effect would this have on the shares of my Cdn Banks?
Thanks: Jerry

Q: If you believe the news reports indicating that the big oil countries appear to be coming close to an agreed production cap, this could mean the Canadian dollar has hit bottom and is due to rebound to some extent (probably a little, not a lot). With that in mind any US equities held would be exposed to currency risk. I have made some decent returns on US equities in the past year or so with a good portion of such gains attributable to the Canadian dollar decline. Would you consider selling US equities now if you thought the Canadian dollar could appreciate in value say 10% over the next year or so?

Q: just did a deal with suimitomo for $1 billion for a 13 %interest in a US copper mine.(morenci).
according to the talking heads this deal values copper at a minimum $3 per pound and has moved FCX stock nicely.
my question is with FM. this announcement seems to have moved the stock.would a small position be advisable 1 or 2% As I have learned these stocks move quickly in both directions.If you believe the sky is not falling ,there should be a bid for copper as this deal indicates.
Thx Blake