Investment Q&A

Q: Hi THE great team, I guess estimate is part of the market. Who make them ? How accurate are they ? Over or under estimate cause volatility ? How to judge a reasonable one ? Thanks. Victor

Q: Do you know of any software available that can track stock quotes other than Quicken pro. I have used Quicken Pro for many years but now they will discontinue the stock downloads u9nless one purchases their 2017 program. Cost is about 84.00 per year. It works pretty good except it does not correct stock prices for different exchanges. (such as US dollars). Thanks. Ernie

Q: My portfolio has been sitting unchanged for some time (2 yrs), many winners are 5i recommendations, some not so much. With that said, my portfolio is well underperforming the model equity portfolio. Below are my current holdings. If I am to sell off those not included, and change the weight to match those in the model portfolio, how would you go about executing this? Big bang? Are there names you would wait to get into today, or those that you are considering a change in the near future? The value is about 500K, so the trades(from my perspective) will be significant. % are approximate on the add side. Your advise would be really appreciated.

AYA-6.3 (%) - Sell
AVO - 3.7 - Sell
BAD - 3.5 - Increase to 5%
BNS - 6.3 - trim to 5%
BDI - .6 - Sell
CGX - 4.8 - Sell
CSU - 5.6 - No Change
DSG - 4.0 - Sell
DHX - 3.7 - Sell
ENB - 3.5 - Maintain
ENGH - 4.2 - Maintain
XTC - 1.05 - Sell
HCG - 1.1 (ugh) - Sell and burn transaction receipt
MUX - 4.6 - Sell
PKI - 6.4 - Trim to 5%
PLI - 2 - Sell
SSL - 3.8 - Sell
TOY - 6.7 - Trim to 5%
STN - 3.8 - Sell
SJ - 4.1 - Maintain
SLF - 5.2 - Maintain
SYZ - 4.1 - Trim to 3%
TOU - 3.5 - Sell
WCP - .7 - Increase to 3%
Add: AEM 3%, AIF 3%, ATD 4%, CCL 5%, CLS 3%, CXI 3%, GUD 3%, MG 5%, MX 3%, KXS 5%, NFI 3%, PBH 5%, SIS 5%, T 3%, WSP 4%

Also - (I have asked about as many questions of late as I have traded) - for RESP for 4 yr old, roughly 12K in there now, where would you park this given building a portfolio of names is a challenge with the limited funds.

Thanks,

Eric

Q: My approach to investing is simple. Many analysts insist that Canadians have too much of their money in Canada and should be investing elsewhere around the world. I believe the best stock market in the world in the U.S. So my approach has been to invest in Canadian companies that do business in the U.S. and elsewhere (TD, Enbridge, Magna, CCL.B) These companies give you international exposure, you invest in CDN $ and you get the dividend tax credit for non-registered accounts.
Am I missing something?

Q: This will be for the benefit of Patricia and all that are concerned or think they would like to ask more question. IT IS A STRONG ENCOURAGEMENT TO do the following:
Call CDIC at 1 800 461 2342 you will be surprised how easy it is to speak to someone.
YOU CAN ASK:
-about the specific investment that you are planning to do they will tell you if they cover this investment. THEY DO NOT GIVE recommandations.
-About how much money they have to cover any bankrupcy.
-When you will be reimbursed in case of a bankrupcy
-How to make sure that you will be reimbursed capital AND interest
_IF they had experience with past bankrupcy
You will end up appeciating the quality and value of this service.
Print at your will
CDJ

Q: Hi,
A few days ago you answered a question to James and recommended using TD US Money Market Fund as a place to park US cash - (I believe the fund code for this is TDB166). Information of TD's website says there is a distribution yield of .46% and MER of .27%.
I have been using TDB8152 - TD Investment Savings Account as a place to park US$ cash when I am not invested in US$ equities as a place to collect some interest on this money instead of just leaving it in my margin account. When I buy a US stock I sell sufficient amount of TDB8152 to pay for the stock purchase and then return the money to the Savings Account when the stock is sold. I know I receive interest payments every month (in the form of additional shares purchased) - but when I look at the information page on TDB8152 there is no distribution or yield figures available to allow a comparison against TDB166.

So my question here is - which of these 2 funds is the best place to park US$ cash when not invested in US equities - i.e.- 1) which pays the higher yield and 2) are they both equally safe when it comes to protection of principal? As far as I can see both of these trade at a constant price of $10.00 throughout the year - so is only the yield / distribution different?

Thank you.

Q: Could you recommend 3 good emerging market etf and mutual funds. Thanks

Q: I am looking for some education on the impact of a loss of mortgage origination on a bank. Let's say that starting tomorrow, BMO can only find half as many people to sell mortgages to, but, all current mortgage holders renew their mortgage with them every 5 years, and keep paying their mortgages. Does it impact their P/E ratio? I'm guessing that the earnings would drop because there would not be enough new mortgage payers to compensate for those who are are almost done paying off their mortgage?

Q: Can you please recommend a 3 to 5 ETF portfolio for an RESP account?
Thanks

Q: My portfolio is based almost entirely on your balanced equity but I have two international ETFs, ZDM and ZUE. (only about 7% of the portfolio, total). I have two Canadian ETFs, ZLB (has done reasonably well, +32% in two years) and HAC (up but not really spectacular). It strikes me that I am missing an opportunity to diversify further internationally by moving the two Canadian ETFs. If you agree, can you recommend any to consider? I

Q: If you were to substitute WSP global in the income portfolio what would your top two or three choices be. They don't have to be industrials. What would be your thoughts on DR and CHE.UN as candidates?
Thank-you.

Q: May I have your comments on SGI? I don't own the stock and am not planning on buying any but I would like your opinion the company none-the-less. Taking on eBay seems like folly. I have attached a link to a Guardian article which makes an interesting read.

https://www.theguardian.com/business/2016/oct/03/stamp-collecting-firm-stanley-gibbons-annual-pre-tax-loss

Jim

Q: I do options in U.S. markets, but find low volume and low open interest in Canada. Do you or members know of liquid Canadian stocks suitable for covered write. Thanks.

Q: As always, thank you for the great service you provide.

Could you provide a few potential high flyers for a speculative position in a balanced portfolio?

Thanks!

Q: Hello 5i;
There are several ways to buy bond etf`s that are better during possible rising interest rate environments .
Those being;
1- Laddered maturity schedules
2-Floating rate bond etf`s
3-Preferred shares with a minimum reset provision .
Which of the 3 would you consider best , 2nd best etc .and what would be your top 2-3 choices for each .
Thanks
Bill C.

Q: I note that I can buy an ETF that is in Canadian funds but that holds exclusively, for example, the US$ ETF as it's only asset. In this case am I paying the MER for both the Canadian ETF AND the US$ ETF?

Q: I would like to ask a question about mutual funds that take a global approach. (Sorry I am a ETF Newsletter subscriber and I do not know where to post a question there so I did it here). According to the high-profile consulting firm, McKinsey & Co., the expected return on NA and western EU will be far worse than 30 years ago. See the link for detail.
(https://www.bloomberg.com/news/videos/2016-05-12/millennials-don-t-worry-you-ll-be-able-to-retire).
If it is for the long term, I personally agree with the global approach combined with active management, what do you guys think?
I would like to also ask you for a list of global-approach funds. I remembered you mentioned "Trimark Global Endeavour Fund" in the newsletter. Can you give some more names here or please do it on the next issue? Thanks, Tony.

Q: Can you please recommend a Balanced ETF for my account?

Q: Hi, may I please have your opinion on the National Bank of Greece? It seems like there is more than just blood in the streets. It looks like the carcasses are starting to be cleaned up with further bailout talks. Good risk/reward? I'm okay if it goes to 0 if there is equal chance it can be a 10 bagger.

Q: Just curious what you think of the last three days of market activity.