skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi Folks,
My question is about the concept of a 5 year "stepper" product described by one leading financial institution as having a one-year term and automatically renews for four successive one-year terms on the maturity/anniversary date. The annual interest rate automatically increases on each maturity/anniversary date. The investment may be cashed in full or in part on the maturity/anniversary date.
Rates are year 1 - 0.85%
Year 2 - 1.10%
Year 3 - 1.75%
Year 4 - 2.00%
Year 5 - 3.55%
Effective Annual Yield - 1.846%

For someone who has a portion of their portfolio in GICs, does this type of product make sense? What are the pros and cons please and thank you. Michal
Read Answer Asked by Michael on September 23, 2020
Q: Hi Folks,
Everyone is looking for returns, and income investors are searching for interest and yield. Forgive me if I missed a previous question asked and answered, but would it be possible to give a quick list of the type of fixed income products in the low risk category. For a very conservative portion of a portfolio, with a five year hold, which product(s) do you suggest offer the best risk/return trade off given the current rate situation in the market today? How far on the risk spectrum does an investor need to go to achieve a reliable 2-3% return?
Thank you, Michael
Read Answer Asked by Michael on September 23, 2020
Q: To add to Donald's question:

i have a position in NFI (now about 2,5 %). Considering that:
-its a long term hold (5 years +, no need for dividend money while waiting)
-that it is hold in a registered account ,so no taxes loss or gain
-that trading fees are not significant

would you keep the current NFI position or switch it to MG ?
Read Answer Asked by Olivier on September 23, 2020
Q: Can you update your comments on Eastmain and the upcoming buy-out? I am a LT SH and have not done well though it appears to have a good location and gneral potential. I am looking at cashing out and rolling in to other opportunities in mining that are actually producing but have not run up with the bullion prices. It seems to me that First Majestic is well positioned to benefit from the recent silver pricing change. Any thoughts to share on that or other companies with share prices that have not risen with the rise in bullion prices, yet?
Thanks, Calvin
Read Answer Asked by Calvin on September 22, 2020
Q: Hi 5I,
I own REAL and am hanging in there through this down draft on the share price as I believe that it will do well in this low interest rate environment that is expected to carry on for a few more years as (addressed in the Fed comments this week). I read your response to a question that a negative impact is that they are concentrated with a few large institutions and losing one could impact the company at least in the short term. It lead to my wondering who are their competitors in this market? Would you consider REAL a disruptor in this field and are they early in the process? Thanks
Read Answer Asked by Gordon on September 22, 2020
Q: Hi Peter, I read your Saturday column in the FP very religiously. This Saturday you suggested that a Portfolio with 90% Govt. T-Bills and 10% Call Options can provide significant Upside & just as much Downside Protection. I don't know much, if anything about T-Bills & Options. Would you kindly explain? Also, where can I learn more about them online?
Thanks so much
Read Answer Asked by Austin on September 22, 2020
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!