Investment Q&A

Q: hello 5i:
A question was previously asked by curiously enough, someone named Paul, that went:
What sector weightings would you recommend for a conservative middle age investor, with a balanced focus on capital gains and dividends. Your advice included a 15% allocation to Consumer Staples and 5% to Consumer Discretionary. Could you give me your top 3 picks for each sector? I apologize if this question has already been asked, but couldn't find an answer by searching.
thanks
Paul (not the one that asked the question)

Q: Hi, I'm looking at adding some higher-yielding municipal bonds to my portfolio and the
Short High-Yield Municipal Index ETF (SHYD) caught my eye. I like the relatively shorter duration but please let me know your thoughts.

Q: That is a great essay on, "WHAT TO DO WITH A TEN BAGGER".
You mentioned to ignore the old price.
That got me thinking on dividend yield on the historical acquisition cost of a stock. I've liked it for decades. But I have been reading on line that one should not consider that. Only look at the current yield.If it [current yield] goes down enough, that might be an indication to consider selling; the stock might be over valued. Likewise, if the yield goes up too much, that too might be a reason for a sale as the stock price has fallen too far.

What do you thing about 'it's the current yield, not the historical one, that counts'.

Thanks.

Paul

Q: Hi Peter
I noted your answer on IBM . I will take what little profit I made . If I were to replace it in my RRSP ,how does google fit ?or can you suggest another stick for a 5 year hold .
Candi

Q: Peter TOG is down about 20% over six weeks any advice on this one I am still up about 40% . ( hold ?? Sell ?? ]
Thanks Jim

Q: Peter and crew:

I really like the look of your model "income" portfolio, and am looking to largely mirrror it in a non registered account with a 10 year + time horizon. My concern is with the tax implications of XHY, CVD, CPD and ZRE in a non registered fund (higher tax than dividends). Would you be able to suggest three of four solid dividend companies (not included in your other portfolio) that may be used to replace these. I understand this would make the portfolio more aggressive, but am comfortasble with that due to bond exposure in registered funds.

Thanks as always for a great service.

Phil

Q: Much has been written recently about "growth" stocks being out of favour.
1. What is in favour? Any suggested stocks?
2. What will it take for growth stocks - like ESL, AVO ... to be in favour again.
3. Is there any reliable historical data to indicate how long each of these cycles takes?

Thanks again.

Q: Fantastic presentation on bnn.Please give me any info.on aif.Jim

Q: Hi team. Love all the work you guys do, I read the shared questions on a daily basis and this is by far one of the better newsletters out there in terms of info, layout and searchability.

I'm looking to start a new, concentrated portfolio for long term growth. Could you please provide 5-6 picks? Thanks, you guys are doing an awesome job!

Q: Hello Peter and Team:
What is to stop AVO from its free-fall down already 75% from its recent high of 34.5? Maybe the tech sector will follow the health sector Tecmera, a popular health stock down 200% from 34.7 to $12 in a short period of time with a lot of others. The oil/gas sector RMP and BTX for example, down 8% recently - could they get down 50% over the next while? I know this is more like three questions, but hopefully you can advise me on these 3 points. Dennis

Q: Hello 5i,
There are two US banks I’m looking to top up a position in, and I would like your opinion on, they are People's United Financial (PBCT) and New York Community Bancorp (NYCB).
Thanks

Q: It would be very helpful if your report card also included the peg ratio to give a better idea of how cheap it is relative to growth. Thanks for your excellent service

Q: Hi Peter et al.

I'm a 30 year old mining engineer. I currently work for ABX… ugh, I know.

My planned investment breakdown:

RRSP/LIRA (maxed) (54%) = XIC, RSP, VWO & VEA
TFSA (maxed) (10%) = Canadian growth equities from your model portfolio
Non registered (30%) = CDZ & ZDV
Cash (6%) = CAD & US Cash

Questions:

My goal is to have a balanced global ETF RRSP/LIRA portfolio.

Q1 & 2: What are you thoughts on the combo of XIC, RSP, VWO and VEA to achieve that goal? Am I missing anything fundamental?

Q3: I have a poor sense of what a "reasonable" or "well rounded" split between Canadian, US, developed and emerging markets should look like (i.e. the split between XIC, RSP, VWO & VEA). Could you provide some insight from your years of experience? (I know this is a very subjective question)



PS: I learned of your existence during the reddit ama and since then I've learned a great deal from your site; the Q&A "vault" is fantastic. I'm in awe of your ability to keep cool, calm and collected when you receive choleric comments when your guidance results in a loss. You provide longterm investment advice, with the best information you have at the time, stemming from the experience gained from a career on Bay Street… nowhere have I seen you ever say that you're always right.

Feel free to omit the above comment, or anything else for that matter, prior to posting.

Cheers!

Brian

Q: Hi,What do you think of DOMTAR?Thanks.Ebrahim

Q: I would like to add Telus, BCE and Enbridge to my holdings for stability and the dividend. But they've gone up so much. Is this the time to buy or should I be waiting?

Q: The energy sector has taken a hammering the last couple of days, with many companies off 6-10% in two days. Do you have any idea why? Also are the reversals likely to be short term?

Q: Could I have you valued opinion on floating rate prefs? The one I am looking at is BCE.PR.D. Thank You

Q: Hello Peter & Team, any explanation for the sudden Canadian energy sell off affecting three of my names: TOU, WCP & DEE? Even Peter's latest energy pick SGY has come back in the last few days. Are these buying opportunities or a signal oil & gas prices are about to cave in? Many thanks, Keith

Q: Hi Peter, I just signed up as a new member & I have to say, the investment advice your team provides is extremely helpful & economical for the DIY investor. The question/answer section is a great way for people to gain confidence with a professional second opinion.

I noticed the highest letter grade is an “A” in the summary sheet. Has your team every given a company an “A+” rating? If not, what would a company need to do to receive that level of confidence?

Q: When allocating funds to the energy sector are midstream and service companies (eg,GEI,KEY,PSI,TDG etc.)included with the traditional oil and gas producers (eg,CNQ, SU,WCP,BTE,VET etc)or are they a sector in their own right? Thanks