Investment Q&A

Q: I am reviewing your Macroeconomic Report Card. Thanks for that, I find it interesting.
Two questions:1) How are the TSX and S%P 500 average P/E ratios calculated? Are these a straight average of all stocks in the exchange or are the weighted in some way? 2) For the TSX and S&P yields, are all stocks included or just those with dividends or something else? and is it a straight average or weighted by capitalization or something else?
Thanks, you provide a great service.

Q: Is there a possibility that 5i would organize a day-long symposium somewhere in the GTA for members where a set of seminars would be offered that would be of interest to the group? The structure of the seminars could be similar to what was offered on the recent cruise excursion that 5i organized. It would be of interest to people like myself who would enjoy the seminars but could not manage to get away on a cruise for several days. Anyway, thanks so much for your wonderful service.

Q: I was thinking of buying for my RIF because of tax tx of distribution. I can't analyse as there is not data available via CIBC Investors Edge to determine PE, ROE, debt etc etc. Is this a solid hold for my RIF?

Q: While I am not yet 89 , I understand the older gentleman's desire to still have a hand in the market. Would keeping 50 per cent for emergency and putting the remaining in laddered GICs work for him? He could still get at the GICs even if he had to pay a price. What do you think? (not wiser than you, but older!)

Q: I own some Royal Bank and Manulife stock; what other financial stock would compliment these holdings?

Q: I hold a small position in a number of stocks (about 2K to 3K per company). Trying to raise 10K. Which 4 of these 8 would you sell ?

Alaris Royalty Corp
Painted Pony Petroleum Ltd
Pembina Pipeline Corp
Inter Pipeline Ltd
Terra Firma Capital Corp
Great Canadian Gaming Corp
Lundin Mining Corp
Patient Home Monitoring Corp

Q: How would you rank these 4 small caps with regards to value and growth. Which would you be most comfortable buying today?

Thanks

Q: Interested on your insights into this company. Early stage but sounds like a pending contract for their skin lightener could be worth 3 times their current market cap ++ and that is just one of their products in the pipeline. Recent volume and price increase seems to point to something transformative on the horizon.

Q: Hi Folks,

I read this note this a.m. from Bill Dickey at RBC in his 'technical corner' I thought it was very appropriate to the interests of the readership here and with the numbers included from Bloomberg really brings what you've been saying to those that worry to light.

"Much is made of the stock markets daily direction, but watching the movement too closely likely makes it more difficult to tell what the trend may be, but the allure and excitement of the process makes it an irresistible thing to watch for some investors. Often it seems that the market changes direction on a daily basis, with the reason for the move sometimes being a pretty weak excuse. This is because the daily market moves are driven more by the emotion that gets tied to the daily news rather than the trend of the fundamentals that determine the long- term success in investing. If the markets moved only in relation to the facts, they would be easier to understand, but once you throw opinion and emotion into the mix, it gets very confusing and uncertain. The table below illustrates how the daily market movement is close to a coin-toss in which direction that it may be as the emotion of investors is a lot harder to predict than the market itself, while the longer-term view generally supports the theories and benefits of a long-term investment plan."


Percentage of time S&P has been up over the past 65 years

Daily : 53%
Weekly : 64%
Monthly: 59.3%
Quarterly: 64.3%
Yearly: 73%

Source: Bloomberg news

Best

Sheldon



Best

Sheldon


Q: "Yesterday there were two 500,000+ blocks at $6.60. We think the moves in the sector are entirely political worries, or sector rotation (into energy perhaps) but can't offer much more here. "


In your response to David's question I interpret it that someone(s) sold 2 blocks of 500K shares at $6.60.

I suggest it was someone(s) buying at a low. Especially considering it is rising now. I do not know if they were Black Pool buys.

Could these be viable possibilities?

Q: Hi Peter

I have no metals or materials exposure and was wondering if it would be appropriate to add some for portfolio diversification purposes? I was thinking about 2% of my portfolio for an initial position. If so, I am leaning towards an ETF rather than purchasing individual stocks. Do you have any suggestions for an ETF for this purpose?

thanks,

J

Q: Is now a good time to start moving out of U.S. L-cap stocks into Cdn stocks in order to lock in the exchange gains in my RIF and TFSA ? Not related to any one stock.

Q: Interested in SNC in spite of their legal shenanagins. Looks as tho the Iran business bonanza is starting and SNC knows the Middle East well. We didn't like Iran with our previous cons govt. but I guess with the new one now we do. Also they are a Quebec company which bodes good for those infrastructure projects we keep hearing about. How do they stack up against ARE, WSP etc??

Q: In these volatile times, what sector allocations do you recommend for 2016?

Q: I’m mulling on using USD$ ETFs rather than a number of separate positions in a US$65.000 portfoilo. This would be a new venture for me. At the same time I monitoring about 40-50 TSX stocks. So US$ETF would make it easier for me. The objective is to hold US$, and achieve reason total return of 7% for a long term hold. I take it this would be a good way to go?
I just read your response about "If you continue to want the tech exposure in USD$, the ETF "IGM" could be used as well.” And following you suggestion that because TSX is thin in consumer discretionary, health care and industrials, what USD$ ETF’s would you suggest I consider for these sectors?
End result would be to hold 4 ETF’s, about U$15,000 each which would align with your other suggestion of holding that level, like 3 positions in value…..Again…thanks……tom

Q: What would be your choices today for long tern inflation protection while still generating decent income.
Great service.
Thanks

Q: Hello PETER, Your suggestion please for sector etf like - health, media & communication, tech. Global and some dividend is better.
thanks

Q: Hello, can we get your opinion on the market return GIC offered by many banks (maximum return capped with the principal guaranteed - few years commitment). Does not seem to appealing but would it be ok to replace some fixed income assets with this given the low rate environment (some upside vs 2-3% for bonds) . Is there a lot of fees in these products ? Thank you

Q: I want to start a position in the consumers sector and was hoping you might be able to suggest a few that have maybe been excessively beaten down by the market.

thanks Wayne

Q: My father (89 years old) has sold his home and moving into an "over 55" facility near me. He lives on social security, plus some distributions from some prior investments (currently worth about $70,000). That covered all his expenses (his home was mortgage free).



He has just sold his home, and will have about $100,000 in proceeds at closing from the sale. When I asked own investment adviser what my dad should do with the 100,000, he was reluctant to offer more than "put it in the bank". My dad will need to withdraw from these funds monthly, probably a few hundred $ per month to meet anticipated expenses.

At the age of 89, seems the SEC takes a critical look at advisers investing money for people of that age. I should add my father is in very good health, given he is 89.



So, keeping my dad's money in an interest bearing account is unappealing to him, (and me, tho I understand that may be the wise choice). He is keen to invest it somehow, but is less than a novice in that area.





My main questions are these:



Should his money be invested at all? Should it sit in a savings account in a bank?



Or, in spite of his age, would the risk of owning a solid dividend paying stock(s) be worth the extra income?