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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: Hello 5i,
Wishing you a very happy and prosperous 2017. And thanks very much for your advice in 2016—it helped to make that a good year for me and many others.
I need to take money out of my margin account for a purchase. I am thinking of a strategy that sounds vagely illegal but I don’t think it is I haven’t read anything about this anywhere. . I thought I would run it by you.
I have high capital gains in fairly conservative blue chip stocks, such as BNS and BCE. I have been thinking about buying a substantial amount of the same stock at todays price, thus bringing my ACB down substantially and thus reducing my capital gains. Then selling the same amount for the planned purchase. Of course at a substantially reduced capital gain.
I know that there is some risk that the stock could move in the time between the purchase and the sale, but with a stock like this probably not too much. And if it did, I could hold it for awhile. Even if dropped considerably ( probably unlikely) I could make a case for holding it.
It seems like an altogether too easy a way to reduce capital gain taxes and make some money. Am I missing something here?
thanks
Read Answer Asked by joseph on January 06, 2017
Q: Joining 5i (and following your advice!) has been my best investment decision ever. Thanks for a wonderful service.

I'm planning to move one of Cineplex, Stantec, or Stella Jones from a RIFF to a TFSA, and am wondering which of the three you would think would be poised for greatest growth over the next few years.

Read Answer Asked by Jim on January 06, 2017
Q: Happy holidays to staff and members.

Would it ever make sense for pbh to purchase gcl? Does the ownership structure of gcl make that a possibility? Gcl has such a low market cap but has significant revenue, I wonder if pbh would be able to ring value out of the company?

Regards,

Robert
Read Answer Asked by Robert on January 06, 2017
Q: Hi 5i team,
My US portfolio is currently about 9% and consists of GOOG, FB, SBUX, GE, MCD, PM & DEO. I want to buy ETFs to bring the % up to around 20%. In a recent newspaper article about the high valuation of US stocks and possible volatility, the author recommended ZWH and ZPW instead of buying broad base market ETF.
What are your opinions of these two ETFs? Would they be useful tool to reduce risk while still participate in the US stock market if it goes up and also earn some dividends? Which one of the two is more effective or they should be employed as a pair? Many thanks.
Read Answer Asked by Willie on January 06, 2017
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