Investment Q&A

Q: Hi Peter
I am reviewing my so called balanced portfolio.as we head into 2017
Right now this is where its at.
NON STAPLES 10%--STAPLES 9%--FINANCIALS 18%--HEALTH 9%--ENERGY 9%
INDUSTRIALS 11%--TECHNOLOGY 10%--MATERIALS 14%--UTILITIES 4%
TELECOMMUNICATIONS 2%--
AS YOU SEE IT IS OUT OF WHACK--COULD I PLEASE HAVE YOUR COMMENTS ON ANY
SECTOR YOU THINK I SHOULD REDUCE EXPOSURE AND ALSO ANY I SHOULD ADD TO-
IF YOU WANT ME TO ADD ANY STOCKS TO SAY UTILITIES OR TELCOM--WHAT WOULD YOU SUGGEST---I CURRENTLY HAVE AQN-BEP.UN-FTS AND T--I GUESS I COULD ALSO TOP THESE UP----IN THE OTHER SEGMENTS I HAVE AT LEAST 4 OR 5 STOCKS.
THANKS --HAVE A GOOD 2017

PETER

Q: Hi Peter

Iam in a situation that i have about 300k divided amonst 2 tfsa and 2 rrsp account. I would like to invest these funds for income and safety. I also have about another 200k in these accounts divided between pwf bns and gwo. Could you recommend maybe 3 to 5 stocks to achieve my goals. I think it would be too much to try to replicate the income portfolio. i was was thinking equal weights of wsp T Bip cu fts or enb.

Thanks
Mike

Q: Good Morning 5i
Which companies will be active in advancing new or replaced pipelines in Canada in 2017-18?
Thanks.

Q: Just wondering if you've read the book "the little book that beats the market" and heard of his magic formula investing? Is it too good to be true? Or does the methods and practices actually hold water for long term investing results?

Thanks!

Q: Online shopping. What companies will benefit from supplying such things as packaging and shipping for the large companies like Amazon?

Q: Hi, with regards to the graph shown in the Jan 10/17 blog entitled The Rebalancing Trade. The X axis plots time. What is the Y axis plotting & how is it calculated. Also what is such a graph plotting time verse value % called. Thanks … Cal

Q: Further to Paul's question on the 15% withholding on US dividends, what is the situation if XYZ was not held in a TSFA? Do we, as Canadians get a tax credit for the 15% withheld or do we just lose it altogether? Henry

Q: Can you give me your opinion on analysts or advisors that give their evaluation or opinion on a stock based on their 'model'. You probably know some analysts that appear on BNN Market Call. They talk with confidence about the 'model price' of a stock that is above or below the market. Tell me if I am wrong but, an opinion which is not substantiated by explicit critiria be it technical or fundamental, should be avoided if one does not want to follow an advisor blindly. I know that these guys do not want to give up their recipe and appear on BNN to recruit new clients but it should be clear that when they are on TV looking at their crystal ball, it is actually an 'infomercial'. Unless you intend to purchase, there is no point in following their advice because you do not know on what it is based on.

Q: Claire had asked a question regarding the purchase of a equity all ready owned (at a profit) with the objective of reducing the cost base. I believe this will only work if you wait the 30 days before selling otherwise you would be in violation of the tax act.

Q: Hello 5i
My main question is similar to a previous one.
We have 2 RRSP, 2TFSA, 1 non-registered, 1 non-reg. corporate accounts. We are presently with a full service broker(approx. 140 positions), but will be transferring to a discount broker. We are now taking income, mostly from the corporate account.
1)Would you suggest treating them as one when we build our new portfolio?
2)Our intentions are to have 30-35 positions. Is there a point where spreading over too many different accounts can make the portfolio less effective?
Thank you in advance, Bill

Q: hello 5i:
I'm having a bit of trouble with the specifics of taxation on US dividends, on stocks held within a TFSA. I'll ask it in 2 parts. Perhaps the following example will put this one to bed. If we hold XYZ, a fictitious US company paying a $1 dividend (simplifying as much as possible), then a 15% witholding tax is applied. Correct so far. Now, are the remaining dividends ($0.85/share) taxed again, or are they free and clear?
Part 2: do the US dividends received from XYZ have to be declared in annual income tax reporting?
thanks for your help
Paul L

Q: Could you advise outlook for the companies/sector. Thank you

Q: I have noticed that on TD's web broker that frequently a number of Canadian banks are making the new high list. Are you aware of any bank etf's that you would recommend and would you buy the etf at this time? With thanks, Bill

Q: is there investments for the Canadian markets that take advantage of volatility ,should the incoming US administration do some things that start to take down the TSX ? Thanks and have a super 2017

Q: If any one is interested in buying U.S. stocks I am going to read THE MAKING OF DONALD TRUMP BY DAVID JOHNSTON to give me added information.

Q: I think that a stock price can increase because:

1. earnings per share increase
2. multiple expansion

I understand #1. Can you please explain #2.

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

Q: I want to put some money in semiconductor stocks. Do you have a company name or ETF that you would recommend? thanks

Q: Hello 5i

Can you give me 4 names for Artifical Intelligence as that area looks good moving forward

Thanks Mike B

Q: What are your favorite blogs that you read everyday? Trying to increase my market awareness. If you were to devote one hour per day to your investments what would you do to "stay in the loop"?
Thank You Ron