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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: Based on your best guess, how high do you think Prime rate can go and at what level will the 5 yr Canadian bond yield stabilized?

If the 5 yr Canada bond yield was to increase above say 5%, would it trigger a much larger stock market correction? There was not many alternatives to the stock market over the last many years in view of the very low rates. It seems to be changing to fight inflation. I am curious of you general comments on this. Thank you!



Read Answer Asked by Pierre on June 21, 2022
Q: For fun if you were to build a concentrated portfolio with Canadian stocks maximum holding 7-10 what would be your picks today.
Read Answer Asked by Kolbi on June 10, 2022
Q: Hello,

I am looking at buying some corporate bonds for the fixed income portion of my portfolio.

Via my discount brokerage account, I see annual yield between 3% and 4.5% for terms between 3 and 4 years for bonds issued by big banks or Lifeco. If I hold to maturity, am I correct my annual return will be the annual yield?

Also, anything to watch for with these securities? To make my life easier, I was planning on buying a few larger positions to balance my portfolio (as opposed to the typical 7% max stock position for the equiy portion of the portfolio).

Thank you for your help.
Read Answer Asked by Pierre on June 09, 2022
Q: Dear5i
I have either ETF or individual stock investments in all the major exchanges
except for the Dow Jones . Do you think it would be prudent to have some Dow representation or is the Tsx , S&P500 and nasdaq sufficient ? I understand that ZDJ is an ETF on the DOW but i`m not sure if being Canadian hedged is a good idea now . Your thoughts ?
Also i know this is a geopolitical question but would appreciate your thoughts .The Ukraine/Russia war seems to be an additional source for supply chain disruption especially with regards to commodities , which in turn drives inflation which in turn drives interest rates higher . My question i guess would be what`s your best guess as to what percentage the war has to do with inflation and rising interest rates . In other words does the war have to come to an end to see any real and sustained improvement in inflation and therefore rising rates ?
As always thanks for your input , much appreciated .
Please deduct the appropriate credits .
Bill C
Read Answer Asked by Bill on May 31, 2022
Q: Hello team,

Given the situation in the market, I would like to sell some stuff to recover the taxes I paid on capital gains back in 2020. But before doing that, I have a tax question: How do I recover the taxes paid on net capital gains in previous years? Let's say that I had made a capital gain of 100K in 2020 of which I had to pay taxes on 50K. Now, assuming my income hasn't changed, if I declare 50K in capital losses this year, do I get back all tax paid on my 2020 capital gains?

I know you are not tax experts but I hope you can give me a quick and general answer.

Thanks for your guidance! :)
Read Answer Asked by Saeed on May 30, 2022