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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 have a Canadian dollar RRSP with a significant portion of US dividend paying stocks, to avoid dividend withholding tax. My RRSP is charged $10 per trade but otherwise there are no fees appearing on my statements. The dividend amounts from US stocks appear in Canadian dollars. Although my investment company has US and Canadian dollar accounts for non-registered investments, there are no US dollar RRSP's. I often wonder if, and how much, I am paying in exchange fees when my US dividends are converted to Canadian dollars. Will those currency fees be included in the new disclosure rules? Thanks!
Read Answer Asked by Linda on September 11, 2016
Q: I would like to have a decent return but preservation of capital is a priority. Please provide your opinion on CIBC Canadian Bond Index Fund – Premium Class CIB585. I am aware that you recommend the ETF CBO so would appreciate your comparison. This would be in a non registered account.
https://www.cibc.com/ca/mutual-funds/no-load-income/can-bond-indx-fund-premium.html

Thank you,

Read Answer Asked by Nadine on September 09, 2016
Q: Over the past few years I have purposely avoided the materials and energy sectors. By doing so I outperformed the market from 2012 to 2015. This year the market is outperforming my portfolio handily largely due to large increases in these sectors. Could you provide 3 companies in each sector that I may consider purchasing for a long term hold. I am interested in companies that pay a dividend and have some opportunity for capital appreciation.
Read Answer Asked by Robert on September 09, 2016
Q: Hi, probably a delicate subject but what has happened with the growth portfolio? There are some big wins, but also some big losses. Obviously, not every pick can be golden but do you not have some safeguards on your positions such as technical sell points etc?
The income portfolio is great, but it is hard to have confidence in the growth portfolio at this time to be frank.
Read Answer Asked by Mark on September 09, 2016
Q: I repeat my question. I am an aggressive growth investor and would like to know if these 4 companies fit my profile. Realizing that you do not my portfolio, I would still like you to
forward your favourite 6 or so growth companies. Unless you have a compelling case, I do not invest in resources ( mining, gold, oil/gas ).
FIRAN, EXCHANGE INCOME CORP.,DBOX,TECSYS-TCS
Thanks for your great service and advice.

Klaus Schmidt
Read Answer Asked by Klaus on September 08, 2016
Q: Would you agree this still happens daily?

For well over 100 years there have been stock manipulators, stock operators and stock traders...such as one of the classic and considered the best all time operators, and he did it back in the ~1910 - 1920 era, Jesse Livermore who was more concerned with beating the market, specific stocks & futures, than actually concerned about making $$$ even though he could and did routinely make millions in a year back in say 1920!

They, the "movers" will move a stock - buying or selling some - to get it moving and then once other investors, such as retail investors and institutional investors, take notice and start buying into the stock the "movers" starts selling or close their short for a profit.

This is often all that is happening when a stock moves and there is no news or incident to be found. Most "Investors" want to know why for everything but in reality there is nothing to know other than movers doing their daily business of attempting to make $$$ in the market.

There are so many different interests and money making approaches used from around the world.

Not everything is explainable. Such as why GUD or CSU is rising lately. Note CSU is down today as it just hit a resistance level from before. Kinda predictable I think from a technical perspective.

Have a great day.
Read Answer Asked by Stan (1) on September 08, 2016
Q: I am considering purchasing a $5000.00 5 year bond paying 5% per annum from Solar Share of Toronto. This bond is RSP eligible. Is this a reasonably safe fixed income investment? I have other blue chip stocks in my RSP. I will not need this money for many years.

Is there a tax efficient way to purchase the bond with existing RSP funds? I would like to avoid withdrawal fees from TD, the bank that holds the RSP.
Thanks, Brenda
Read Answer Asked by Brenda on September 07, 2016