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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: A number of members have asked about selling losing stocks to claim the loss and then buying back the same stock after thirty days possibly at the same price. It occurred to me that this could be counterproductive unless I am misunderstanding the impact of this maneuver. For instance, let's say I bought ABC at $100 and its value drops to $80, and I sell ABC to claim the $20 tax loss and, after 30 days buy ABC again at $80 and, sometime in the future sell it at my initial $100 price to gain $20. It seems to me, unless my tax bracket has shrunk substantially, that the tax recovered initially will be paid back on the second sale. Isn't that a losing proposition because one would also have incurred two bank charges on the way? What's the point; am I missing something?
Read Answer Asked by richard on November 12, 2018
Q: Good morning,
In your response to Marilyn on Friday you replied that you "have no concens seeing it (CPD) as part of an income allocation" and "one needs to decide how it fits in"
My recent experience is that any so-called fixed income that I purchase loses money even including distributions. My current cash allocation is therefor 20% earning nothing, with another 20% in CBO, CPD, XBB, XHY, and a few preferred issues. I can look for a DIS account but could you expand on "how it fits in" and perhaps suggest the ETFs we should currently be using in this environment and a possible allocation range for each. Thank you for the ongoing excellent service in a difficult environment.
Ted
Read Answer Asked by Ted on November 12, 2018
Q: It seems like a lot of companies are getting decimated on slower growth and future lower guidance - and in some cases even good results are also getting decimated. This does not seem to be happening in isolation and feels like a broad sentiment. Is this the sign of a weakening market? Does this typically indicate something occurring in the near future?
Read Answer Asked by Michael on November 09, 2018
Q: I own CPD in an OPEN account. I am still trying to understand Preferred Shares, even after watching Ryan's very good presentation about it. I am still trying to figure out why the fluctuations in CPD, outside of bond yields, and interest rate fluctuations i.e. should I sell these now for Tax loss selling or keep and buy more perhaps. It might be helpful for me to understand how I can buy an individual preferred share in my TDInvestor account, then I could see the difference in share price to common? A few questions here....
Thanks
Marilyn
Read Answer Asked by Marilyn on November 09, 2018
Q: Good afternoon,

I am looking to add a REIT ETF to my portfolio (ZRE is my preferred), and am wondering on a historical bases if REITS right now are trading at a cheap/expensive valuation? Your website has the PE ratio at 7.8x and PB ration at 1.08x- that seems cheap? How does that compare with historical norms? Only wondering as ZRE seems to be trading not too far from it's all-time high, reached a month or two ago.

Would you expect reits to drop as interest rates rise over the coming months/years?

Thanks for the answer.
Read Answer Asked by Jeff on November 09, 2018
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