Investment Q&A

Q: Hi Peter, Ryan and all,

I am a rational DIY investor who adheres to the diversity mantra but I am considering a slightly radical move. Here's the thesis, which is about energy: at the beginning of the year my oil and gas exposure - 6 stocks, all solid choices - was already on the light side at about 8% of my portfolio. Just shy of 1/4 through the year they are down a cumulative 10% (9% including dividends). My thinking is that:

a) global demand will be flat-ish, as non renewable energy sources gradually gain strength, off setting increasing demands elsewhere.

b) it's somewhat amazing that the OPEC production cut is holding but I'm not confident that it will long term, which could lead to the spigots being turned on full blast again.

c) technological gains mean a decreasing cost to extract every last drop of oil, as evidenced by the Americans in the Permian Basin and elsewhere.

Bottom line is I'm not buying the global oil inventory coming into balance scenario meaning further pressure on prices. That 8% of my portfolio figure is now 7.1% and dropping. Contrary to oil I have been knocking it out of the park on the tech side - 10% of the portfolio - with NVDA, SHOP, KXS, OTEX and AT and am considering getting right out of energy and deploying that 7% into tech and healthcare.

I am well represented in all other sectors except materials - don't like the volatility - so would then be skipping two sectors.

I know this is a deeply personal investing decision but your thoughts are appreciated conceptually.

Thanks!

Q: Two children ages 11 and 15. $5000.00 just being put into a self directed RESP.

Stock suggestions please?
Pat

Q: New fund,believe IPO was $10.00 in December. why would anyone now be selling below $7.50 in only short time. Is it good long term hold if the price of oil is going up? What would be MER. (including expenses) Is Mr. Nuttall's (P.M.) track record worth the investment (high fees). Risk/reward.....Cec

Q: I am light on tech/growth stocks. Plan to add 3-4 names to total about 10-15% of portfolio. Want growth,can take fair degree of risk. I am considering the following- KXS, SIS, PHO, ITC, OTEX. Any preference among these or any better ideas?
Thanks Jim

Q: In my search for the best option available to hold cash I came across a company called Oaken Financial. They currently offer 1.5% interest in an unrestricted savings account. Do you know this company and would you recommend I use them to hold cash?

Q: I am contemplating moving my cash holdings from my Big Five Bank savings account to EQ Bank, to take advantage of the higher interest rate offered by EQ. Are there any risks in doing so, that I should be aware of? The EQ rate is higher 2% vs 1.2%, but I would not make this switch if there is any increased risk of any kind. Thank you.

Q: I'm looking for an ETF that invests in the EU countries as a whole. Are you familiar with any?

Q: Hi Team 5i!

I am building a portfolio using the Balanced Equity portfolio as the centrepiece of the portfolio and ultimately am looking to hold a 30 Fixed Income/70 Equity mandate with about 70% of the equity mandate allocated to Canada. What products should I use to fill out the Fixed Income and US/International equity positions? Ian

Q: Which would be your first choice, if any, to move to a full position from a half(-ish) position at today's prices?
ZCL, XTC, SIS, PHO, GPS, CXI, TOY

Thank you.

Q: This is to bring to the attention of those who use TD webroker. The T5008 that was sent by TD to Revenue Canada(RC) reported the full proceed of disposition without subtracting the commission. There are two issues here:
- If you are using the trading summary as an input to your tax program, the net proceed will not match the net proceed that is reported to RC which is particularly important if you have a large number of trade.
- If you are using a tax program with Auto-fill and you don't report the commission as "expenses related to the transaction then you will be paying higher capital gain than you should.

Q: Saw George's question regarding US dividend withholding tax rate, just a reminder, don't forget to complete the W8BEN form and submit to your financial institution, once completed, the form is good for 3 years and need to be renewed before expiry. With the form on file, the US withholding tax is 15%, otherwise, it will be 30%.

Q: What happens to US dividends received in a RRSP? Is the 30% withdrawal tax applied?

Q: I have been a member for a couple of years and you have been my "go to advisers" .
Thanks to you, I have built this non reg account.
In the non registered account I have the following approximate holdings:
5%--FTS;IPL;H;MFC;SU;STN;PWF;BAM.A;
7%--BEP.UN;CTC.A
13%--CCL.B;ENB

I have $40,000 in cash. Retired with a pension and medium term(hopefully) horizon.
Reading your Q&A, I should rebalance CCL.B and ENB to 5-7%

Additional ideas for the rebalanced cash and the remaining $40 thousand.
Many thanks for the usual, calm, balanced, patient answers.
Paul

Q: Hi 5i,
Following your Q&A for awhile and I have built this as my RRSP.
I have another $20,000 to invest. Looking for two more names (or more for choice). Very long term...kind of a buy and hold person.
Appreciate your advice and direction.
Thanks Paul

Q: I own the following reits (or similar real estate focused equities) in our non-registered portfolio: ap, ax, car, d, fcr, hr, kmp, nwh, hot, cuf, aar, csh, sru, tcn. Collectively they account for close to 16% of the portfolio's value with most being 1% and only hr and ax being around 3% each. My question relates to a concern being expressed in many recent articles about the sensitivity such products have to rising interest rates. I'm wondering whether or not I should, in your opinion, be reducing my exposure here, and if so, by roughly how much and from which holdings. I am in a positive position in all of them with the exception of d, and overall they have been a very helpful part of our investments! As always, thanks for your valued opinion. Don

Q: In the likes of the Buffets, Jobs, Zuckerbergs and Bezoses, which companies in the Canadian markets have leaders or management teams that could be classified as genius or top calibre capital allocators? Goodman at Knight comes to mind. Also, which younger companies have leaders that you see showing early signs of these traits? I would say Shabazi at TIO Networks fit the bill, but he sold out to PayPal. Looking for your list of the best of best; present and future. Thanks.

Q: Hi 5i,
Through an error(on my part)in transferring a TFSA from an Advisor account to a self directed account, the monies were withdrawn in to a non registered account. I know I need to wait a year to replace the TFSA $ in the self directed. Now that I have the chance, assuming roughly equal amounts, which should go to the TFSA and which should stay in the non registered? I also have about $15,000 cash in each account. After rebalancing, can you suggest two or three more for each account? Long term horizon.
Have a good weekend.
Thanks Paul

Q: Hi Peter and Team,

When we are adding to a position, how much capital should we commit at a time? If the goal is 5% of the total portfolio for a position, and we are say at 2.5%, would it mean buying the remaining 2.5% at that one time? Or would it mean buying as capital becomes available (i.e. buy 0.5% here and there), until the full 5% is reached.

Thanks.

Q: I have 25 stocks from BE/Growth model portfolio, with thanks from 5I of $130,000. I have SIS, GUD PBH, GSY, KIN,BCE, ECN, FSZ, FTS I recently was gifted from my father's portfolio $100,000 in BAM shares. What is the short term outlook for BAM? Should I sell most now and rediversify or wait? I know I will need to do something with this as 50% of my portfolio now in 1 company is a worry. I don't have any ETF's at the moment.
Thanks for all your advice

Q: Hi team
I have diageo, it sells nice spirits (high end alchohl)
It has gone up 15% for me and pays a small dividend (it is income as it is a US stock); should I buy some more, sell or hold ?
thanks
Michael