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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: Hi
El-ann asked about PUTS on April 21, 2020.
The Montreal Exchange offers free seminars and they partnered with OptionsPlay, a software that provides feasiblity scenarios. FREE if signed up via Montreal Exchange, OptionsPlay offers weekly lessons. You can ask questions. etc. So save the $1300 and put it in the market instead!
Read Answer Asked by Carlo on April 21, 2020
Q: In a recent question asked by Andrew concerning the setting up of a dividend stream of safe and stable Canadian stocks, I was more surprised by some of the stocks you didn't name rather by the stocks you did include - namely bank stocks. The three major banks, for the most part, are paying higher dividends than the ones you included and you have stated in the past you consider them as secure as any. Was the reason for their omission a concern that these dividends are likely to stagnate for a while or is there some other reason(s)?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on April 21, 2020
Q: In my Margin Account I had FRU and IPL which I sold as the dividend had dropped form the 7% range to~2%. The G & M referred the other day to some Preferred shares paying over 6.5% and up. For example BMO PrC - 6.49%; BCE PrC 7.94% and CM PrP at 7.24%.
As a preferred share gets its dividend before the common I would think they are even more secure than the Common.
Your comments please.
Thank you
Read Answer Asked by Brian on April 21, 2020
Q: About investing in oil directly, here is some information members should know. Please correct me if I am wrong: Although Horizon ETF "HUC.TO" is less liquid than "USO", it has a an advantage over it in this environment: It holds the December contract, not the next 2 months contracts. In other words, USO bets on oil in the short term, and HUC.TO bets on oil in 7 months.

From Horizon: "HUC’s unique methodology is designed to provide the best possible exposure to the commodity. This is done by gaining exposure to the winter months (December) contract of each year, which is often the most liquid, to eliminate the monthly futures contract roll which often creates negative roll yield. Because the oil market is most typically in a state of contango (upward sloping curve), the process of providing investors exposure to the near- month contract 12 times per year creates a constantly changing underlying investment which can prevent the ETF from accurately tracking the commodity. HUC invests only in the December contract and executes its underlying exposure roll once per year, each June."
Read Answer Asked by Matt on April 21, 2020
Q: I have held IVE for many years and to sell I would have capital gains taxes to consider though not what they would have been a couple of months ago. Are there 3 - 5 dividend stocks that you think are solid bets to out perform the index coming out of the downturn over the medium term? (2-3 years)
Thanks Hugh
Read Answer Asked by Hugh on April 21, 2020
Q: Hi There,
Just curious if I could get your opinion on the following funds MAW130, XSP, XMS and XQQ. I am looking to invest some money outside of Canada with some decent balanced/growth potential.
Could you please list in order of preference with the first being the most favorable.
Thank You,
Read Answer Asked by Kevin on April 21, 2020
Q: Greetings 5i ....I hold RY and BNS in a registered account and I am considering a switch to JPM. Aside from the lower dividend do you think this might be a viable longer term capital appreciation story. Best Regards...Gary
Read Answer Asked by Gary on April 21, 2020
Q: Hi 5i team,

I enjoyed your flash update and the reasons for stock downgrades or holding the line, even though I am largely U.S. focussed these days. AKAM has come to my attention in a couple of analyst reports as being a backbone of the stay-at-home theme in routing traffic through its servers and its traffic levels are soaring. However, I don’t fully trust the theme in medicine and video conferencing as their valuations are extreme. I also note that on bad market days the stay-at-home stocks do well and on good market days, they do poorly, as if the market seems to be skeptical of them. So, does AKAM have some staying power if the stay-at-home trade ultimately wanes?

Thanks again for the insight.
Dave
Read Answer Asked by Dave on April 21, 2020
Q: What is your opinion re: Floating Rate Prefs where the interest rate is set quarterly off of the Prime Rate (eg - BAM.PR.B). With the prime rate of 2.45% near the low of the last 20 years (2.25% in March 2009) BAM.PR.B is yielding about 5.75% which looks very attractive since there can't be much more risk of a move down in interest rates. (This assumes that next dividend is based off of the 2.45% and not 3.95% which was the basis for the last dividend that was paid - and is the basis for the indicative yield in Quotes of 9.5%) Ultimately rates will move up as will the dividend....so buying now pretty much sets the floor with quite a bit of upside. Do you agree? Thanks
Read Answer Asked by Gary on April 21, 2020
Q: I have $20,000 to deploy in today's market. Should I do this at $500 a month, $1,000 a month or some other amount and time frame. The complete amount is ready to go. I am a 73 year old retired value investor with a good pension who enjoys dividends with a ten year + time frame. I will be investing in what I already have.
Thank you
Stanley
Read Answer Asked by STANLEY on April 21, 2020
Q: I know already this will be the most naive of questions to anyone with a business background -- but how in the world can oil trade at a negative value? I can understand the notion that "one has too much" and that one has so much that you're actually willing to PAY someone to take it away ... but ... really? How does this happen? What does this mean in the oil world? How can an industry continue to function? If this has been addressed elsewhere, I'd appreciate if you could just provide a link, saving you the grief of answering it twice. Is there any point in getting/staying in oil for the foreseeable future -- other than those who are comfortable with more advanced trading techniques, of which I am not.
Read Answer Asked by Sylvia on April 21, 2020
Q: Would that be an impact on non-energy stock price as the oil price went negative ? What are the possible scenarios ? Would that drive down other stock price as well ?
Thanks for your expert opinion.
Read Answer Asked by Lai Kuen on April 21, 2020
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