Investment Q&A

Q: Hello Peter,
Is VFV and XSP about the same except one is hedged? I have held Sienna and Chartwell for a long time and I thought from a demographic point , they would be great long term holds.. I am down alot but the dividend is great. Are these two good long term holds or since covid, the recovery maybe too long of a time given the high interests that we see. Thanks very much

Q: When looking at dividend ETF performance, are reinvested dividends included, or is the stated performance capital appreciation only, e.g. Morningstar performance for CDZ shows a 3.5% dividend and a 5 year total return of 6%.
Thanks Peter

Q: Hi all at 5!, thnx so much for all your info and insights for us DIY investors, much appreciated!

Can you share your insights on these companies, 2 which announced good quarterly reports lately?

Thnx so much!
Dave

Q: Hi
Please comment on CHE.Ca as an investment.

Thank you

Q: Any updated thoughts, analysis on STLC since the last question on 21 Sept? An interesting commentary on INK Morning Insider today.

Many thanks.

Q: Hello, Can I get your take on how the markets react during a recession? It seems we are heading into a recession in 2023. Do markets drop further? Do company earnings drop? What sectors if any do you see doing okay during a recession? Do I hold off on buying stocks till middle of 2023 and just stick some money in short term gic/treasury bills? Trying to figure out how to prepare my portfolio for a recession. Thanks

Q: Hello 5i,

I currently have some capital to deploy and I am looking to increase my exposure to the industrial sector. I have been watching ATA & CJT as potential candidates. What do you believe would be a good entry point for these stocks? Are there others you could recommend in the sector that would have better prospects?

I have a high risk tolerance and I am looking to hold these stocks for 5+ years.

Thanks again for all that you guys do.

Greg C.

Q: In a response to a recent question 5i answered: “its TAM is only going to grow “. What is TAM? On this subject, would 5i consider a glossary of acronyms placed on the site to enable your clients to further understand what’s being discussed?!!

Q: IF the tech sector has had its day (decades) in the sun and will not outperform coming out of this bear market, what do you think will outperform instead? Next 10 years or so.

Q: Hi Everyone at 5i!!!
First, I would like to thank everyone for your support and hand holding in these trying market times!! You have helped me keep panic and the temptation of emotional selling at bay. My question: I am building TFSA’s for my kids . Could you please give me 5 long term holds either US or Canadian which you think hold decent growth prospects for the future for them . I understand that you do not have a manic crystal ball . Cheers, Tamara

Q: Somewhat unexpectedly, I will need to raise about $200,000 in the next few months. I'm trying to think through my options and would like your perspective. I can think of three approaches, perhaps there are more. I'm near retirement but employment is secure and there is no compelling reason to retire. I own a home in Toronto that has a small remaining mortgage (less than 10% of market value). No other debts.
1. sell stocks in a non-reg account to raise the funds. Assume a mix of stocks in the red and in the black so there would be little net tax consequence. Plan to replenish the account over 5 or 6 years.
2. borrow the funds and plan to pay off the loan over the same 5 or 6 years.
3. sell stocks as in #1, but then also borrow the same amount to replenish the sold stocks over a shorter period of time, say 6 to 12 months through calendar 2023, legging in to dollar cost average. Pay off the borrowed funds over 5 or 6 years. Interest expense on the borrowed funds in this case would be tax deductible.
Part of the decision relates to expected interest rates over the timeframe and the shape of the (expected) recovery. If we assume 4 to 6% average interest rate over the life of the loan but a more significant bounce in equity markets, then option 3 makes sense. But I am not sure I've considered everything, including risk.
If you think option 3 makes sense, could you suggest 5 - 10 lower-risk stocks (dividend growth / growth) with the noted timeframe in mind. Many thanks and take as many credits as needed.

Q: Which of FTT or TIH would you buy here and why? I think Toromont has always been the quality choice but of course you have to pay a premium for it. Time for FTT or buy TIH while it’s below $100? Thanks

Q: Which would you prefer for a shorter time frame of 2-3 years and why?

Q: We hold an all-equity portfolio with 40-45 stocks and ETFs. Core holdings are large-cap Canadian and U.S. companies. We assume that a full position of 40 names would be 2.5% of the portfolio. Top two holdings are BAM at 5.23% and CSU at 4.31%. At what level would you trim?
Also, the Brookfield family is presently 10.26% of the portfolio. What level would you trim there?
We are not planning to trim soon as 12 positions which are small-cap tech are sub .50% and we anticipate a reversal of large-cap dominance.

Q: Hello Folks:

We have owned REMX for about a year and considering trading it for LNTH.
What do you think of this action?

Thanks so much
brian

Q: Upside over the next 12mths. How would you rank the above in sequence of potential during this period.

Q: Would you have a good proxy for CAE (I own AC), CJT, MX,MPW, CRWD for a tax loss or should I just wait for the stocks to recover?

Thanks for your service!

Q: Worth sticking with NFI for a recovery given their pre-announcement?

I'm not as worried about the supply chain issues, which will get resolved eventually, but by their covenant with their lenders. A couple of quotes from TD sources:
Quote: "The company has re-engaged with its lenders for
extended covenant relief."
Quote: "NFI expects to finish 2022 with >$500mm of liquidity but will be in breach of covenants given negative cumulative EBITDA condition. NFI is in negotiations for extended covenant relief but reiterated that it does not believe additional equity is required."

Will the banks give them "time to breathe"? The company is still the largest producer of buses in NA and UK... How bad is this situation? Stick with it or cut the loss?

Many thanks!

Q: Hi,
Please take as many credits as you feel fit. Our portfolio is a hot mess. We’ve basically been ignoring this downturn for the past 6 months knowing we are are in for the long term. Retirement is 7-10 years out. The above holdings have fallen below a 1% weight in our portfolio. We have limited cash to deploy. Which of these would you add to? In what order? Any you would not add to and just hope that time allows for recovery? Any if these you would sell? For the ones that could be added too. Would you just buy now or put some stink bids in given the crazy volatility in markets? Any additional input is welcome.
Thanks so much,
Kerri

Q: I have a son who is 31 and is just beginning his investment journey. He currently is looking to learn and has $15,000 to invest. With the uncertainty in the market he is thinking of investing 1/3 now 1/3 in the first quarter and 1/3 in the 2nd quarter. Is 5 stocks a good start with the intention of monthly contributions in the future to build a diversified over a 20-30 year time horizon. My suggestion was a equal amount to start in Royal Bank, Telus, Brookfield Infrastructure, CN Rail and a REIT.
What do you think of this plan or do you have other suggestions.
Thanks,
Doug