Investment Q&A

Q: Just a quick comment. You have commented in the past that too much news is negative and investors should avoid too much media and static. I get the e-mail on black Friday and it does cast a shadow of indecisiveness. The question is simple. Are you at 5I bullish or bearish on the next 12 months in a general sense? You don't have to be specific on sectors et. but rather how do you see the market (Canadian/US) I'm just simply trying to filter out all the news and concentrate on the big picture which you guys have a much better handle on than I have. Thanks for all the good work. Cheers

Q: Hi,

You recently answered a question from Question: "Hi 5i: The stock market situation has changed a lot since I last did any rebalancing. Could you therefore tell me what weights you would now recommend for the 10 TSX sectors. Also, what sectors would you assign to MAL and BOS which Morningstar calls Basic Materials, and to DRT which Morningstar calls Services. Many thanks.
5i Research Answer:
These are general guidelines, and may vary somewhat from prior answers. Sector allocation needs to be highly personalized based on your needs and goals.
Info Tech: 15%
Industrial: 20%
Telecom: 5%
Financial: 15%
Utilities: 10%
Materials: 5%
Energy: 5%
Cons Staples: 5%
Health care: 10%
Cons. Discret. 10%"

Can you give me 2-3 stock picks for the next two to five years in some of those categories? Specifically...
Info tech.
Industrial
Financial.
Utilities
Consumer discretionary.
Healthcare.

Q: This question is about the merits of moving big time losers from a RIF to a TFSA - assuming there is still a future for these losers .... which are AVO and ACQ. These are far and away the biggest dollar losses in my RIF and are down 50-60%.

If these guys are close to being in the same category as WIN which I did just dump, perhaps I should move on.

BUT - I am OK with holding on if you so advise.

And would also appreciate your point of view on the move to a TFSA with the stocks at these low prices. I am aware that I will still have to pay the tax on this withdrawal, so would likely wait until the New Year.

Thanks again.

Q: Hello Team 5i

I have an idea. Please tell me if this makes sense to you. I am down significantly in 5 stocks, CXI(-40%), AVO(-53%), BDI(-74%), TOG(-53%) and TOU(-54%). My plan is to sell these in my RRSP as I will have to one day pay tax on them in the future. Buy them back in my TFSA(and my husbands depending on the limit for 2016). My hope is that the stocks will appreciate in my TFSA tax free. Of these 5 stocks is there one or two you would be extra cautious on. Your thoughts. Thank you

Q: ET declined 0.68(4.08%) on Nov 27 on low volume after doing well since recent low on 9/28.Reporting on 12/2. Any reason?,Did someone smell something about forthcoming report? BIN increased .50(1.64%) on 11/27 after recent low on Oct 26.Any reason? Is it time to buy? Appreciate your usual great services & views

Q: I am a conservative, dividend-income retired investor, with a well diversified portfolio, company pension and CPP.

I am looking for a conservative, blue-chip dividend paying stock in the consumer, industrial or technology sectors that pays a dividend greater than 3%. I currently own CGX, PBH, WSP, ZLB, XIT.

Thanks,
Steve

Q: The stock is at a 7 year low reacting to Quebec government changing the tendering process for generic drugs. It gets some revenue from it Pro Docs
generic division. Is this an over reaction?

Thanks

Q: Any reason for the huge drop the last couple of days? Would you consider this a buying opportunity?

Thanks,

Paul

ps, the data given on my previous question for ENB came from google finance (not sure how accurate they are).

Q: I have an 81 year old friend who lives on CPP, OAS & GIS.......but has about $150K in a Bank a/c. Last Dec/31, his Bank convinced him to put $75K into a Laddered GIC @ $25k each for 1, 3 & 5 Year Terms. Prior to this, he simply had it all in a Checking a/c, NOT even a Savings a/c. He is very unsophisticated, with little education. I have arranged a Gift Annuity for him with Catholic Missions in Canada (CMIC) for $25K. In return for his Gift, he gets $1,580 per year Interest for rest of his life + a 1 Time $10K Tax Credit.
What can you recommend as simple investments for him for another $75K?

Thanks Kindly!

Q: Hi Peter
I know you subscribe to not selling on news and holding on for corrections to correct themselves...has been good advice on many and saved some a lot of $9.99 fees by not being trigger happy and seeing recoveries. On other like CJR.B I am glad I did pull the trigger. For small positions in the 3 above that I am under water, I am wrestling with the ,if you wouldnt buy more,its a sell theory. I have some cash to invest and if I am not willing to average down by buying more of these three,are they then a sell or do any of them merit the "HOLD" recommendation?
Thanks for all you do
Dennis

Q: Good Morning, I'm topping up our TFSA's and am wondering if you could give me your top pick or two for a TFSA in the tech,healthcare, and consumer sectors. I currently own Constellation in my TFSA but don't have any healthcare. I'm looking to replace Dorel with something with better growth in the consumer sector. I'm also light on financials in my TFSA (I hold a bit of home capital) so if you think that's a better place to add new money I'm open to that as well. If this counts as two questions that's fine!
Thanks, for your advice. Rod

Q: I would like your opinion of selling NA (my current holdings of NA are 13.3% of a total CDN-Margin A/C dedicated to financials of 42.9 (RY & TD). The only other holding is CNR (56.2%)... I know it is way overweight for a single holding, but suffice to say I know this and am prepared to carry this risk (it has worked out well for 20 years)
My thoughts are to buy BCE (1000 shares) & EIF (1000 shares) to diversify a bit from financials. I currently hold no telecoms, and I like the dividend paid by EIF (assuming it is fairly secure).
Your thoughts would be greatly appreciated.

P.S. My capital gains on NA would be offset by losses on BB.

Thanks in adavance,
Scot

Q: Hi Peter and Staff
All 3 bought small positions in based on BNN experts...down on all 3 large......any of them worth averaging down on?
Thanks for all you do
Dennis

Q: On Sep 28,You chose the following stocks for my risk aversed 27 yr old daughter:SJ(Investment a/c),POW,CGX & ATD.B(Rsp)& CSU,BIN,MG & GIL(Tfsa).Please advise if the selections are still effective & any changes.Is this a good time to star?.How much has the strong gain in October taken from November & the rest of the year? Appreciate your usual great services & views

Q: Good morning, what are your thoughts on CGC Q2 results?

Q: Recent strategic review. At a major turning point. The product appears to have potential. Speculative . For a speculative play at what point do you enter. Before or after results of current review.

Q: In my well-diversified portfolio, in your opinion, which of the following should be sold for better returns at this time? AWF-N Alliance Bernstein Glbl Fd; AV.UN-T Aston Hill Advantaged T/U; EMP.A-T Empire Company; FCAU-N Fiat Chrysler Automobiles; HLF-T High Liner Foods; RUS-T Russell Metals; STB-T Student Transportation. Thank you
Thank you

Q: Good Morning Peter and team, I'm holding a number of stocks which I could charitably classify as "dogs". They include, ZAR,MGO,RET.A,NGD,TCK.B. All of these now make up less than 1% of my portfolio. On the brighter side I do have a few winners. (Thanks 5I) I'm up to 9% on CSU and 7.5% on ESL. Should I sell all of the dogs and trim back to 5% or so on the winners or should I try cover more of my losses and sell all of my winners. I would then buy back to 5% in 30 days. Thanks for your advice. Rod

Q: HI
Why are BCE and Telus a recommended "buy" when they both have not met their estimates.
Margita

Q: Hi,

Can I have your opinion on Cara with the new offering out today.
I'm invested in various stocks from all three portfolio's with an emphasis on dividends and some growth.

Thanks, Carl