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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: I tried to search the site in the blog section for information on the 5% suggestion for individual stocks. No actual search feature for individual articles. so could I get a reason for the purpose of the suggestion. How it should work ie if you have 7% do go back to 5 or let it ride and wait what would the top percentage when to trim. I have TD up 0ver 200% at 12% of portfolio but it is a good dividen payer and stable stock??
Read Answer Asked by Ross on May 08, 2017
Q: Hi.

Im borrowing funds for investing purposes.Since this is my first time doing this, I want to ask your advice if I use in non registered acct or my TFSA.I know I can get a tax credit for interest payment of the loan but with TFsa everything is tax free except theres no tax credit for my loan.Jist dont exactly known the calculafion.Im in 40% marginal tax bracket.

Appreciate your help. Thanks.
Read Answer Asked by sunday on May 08, 2017
Q: Good afternoon 5i. I am currently sitting with 25% cash on the side lines. I know that's much too high. I have avoided gold/silver sector as well as oil sector(I do have enb, trp, fts)I've also avoided consumer goods sector. I'm light in industrials (dow & cbi) and property sectors (tcn). All other sectors are represented fully and equally ie health/financials/tech. I have a 65/35% split between US/CDN market respectively. With the stock market correction today and yesterday would it be a good buying opportunity and what sectors should I focus on going forward and if you can offer some stock suggestions in each sector. Much appreciated.

Robert

Read Answer Asked by Robert on May 05, 2017
Q: Hello team,
Thank you for the portfolio review. It is a great help and a terrific service to mankind. All my ducks are now in a row after a lot of quacking but now all is calm.
Question: When you write that segregated positions should be 2% and ETF's 5%:
is that 2% of:
1)just only the equity,
2)the complete portfolio including paid up residences and safety expenses cash, or
3)the complete trading portfolio including fixed?
Is that 5% of
1. All the ETF's,
2. 5% of just the fund ETF's and 5% of the fixed ETF'S separated out?
3. 5% of the complete portfolio as above?
4. 5% of the complete trading portfolio?
thank you
Stanley Cohen
Read Answer Asked by STANLEY on May 05, 2017
Q: I am 74 years old and need some of these money within next couple of years. So I try to watch my growth carefully. I try to keep to the 6% rule. But my problem is to find better growing stocks. So, why sell??
Here are a few questions:
Is it time to sell 50% of the following?
VUN , more than 10%
SHOP, 15%
Is MX safe for the next 6 months?
Can you suggest a replacement for NPI?
SIS has grown more than 70%. Do you recommend selling 50%
I know this is more than 1 question, just charge for them all.
Thanks
Margita
Read Answer Asked by Margita Elisabet on May 04, 2017
Q: My portfolio is a combination of the Balanced and Growth model portfolios. I'm torn between your advice to "let winners run" and your advice on keeping sectors reasonably balanced. Tech is up and energy is down....so in theory, I should be selling some Shopify and Kinaxis and buying more Whitecap and Raging River. SHOP and KXS are not yet over 5% of my portfolio so I don't need to sell them to reduce risk. My instincts tell me to let the winners keep running until I see some life in the energy stocks, even if that means being very light in that sector. Your advice, please. Thanks!

Alan
Read Answer Asked by Alan on May 04, 2017
Q: I am a senior , I am of the view that bonds , preferred shares, fixed income are not as effective an investment device compared to Canadian bank shares. I don't see a lot of risk over the years, but large and consistent yields. Besides liquidity in a bad recession, where else do you see downside by treating bank stocks as fixed ,long term income investments, hence overweight positions in a portfolio.Thanks to a great team for your exceptional service, Jerry
Read Answer Asked by Jerry on May 03, 2017
Q: Dear 5i
My son has $6000 to invest and prefers solid earnings growth companies . He does not need the money anytime soon . What stocks would you suggest at this time .
I suggested no more than 5% in any one stock but this would not be much per stock with this amount of money . How many stocks should he have and what would you consider a full position under this scenario ?
Thanks
Bill C.
Read Answer Asked by Bill on May 03, 2017
Q: My son is diligently saving to purchase a house and currently is taking advantage of the benefits of a TFSA. I have mentioned that he should also consider opening an RRSP to take advantage of their home buyers plan. He can contribute an extra $15k and get an additional 35% tax refund. He has about a 4-5 year time horizon before he needs the money. Is this sound advice? Can you recommend what stocks he should consider?
Thank you
Read Answer Asked by Marty on May 03, 2017