Investment Q&A

Q: David Rosenberg recently wrote an article relating to the outsized US debt situation.
One of his recommendations is high quality bonds. Would you agree with this assessment?
What high quality bonds would you purchase and what length of time - short or long term?
Thank you!

Q: I am looking to increase my fixed income percentage but this current market has me bamboozled. Major markets are basically even YTD despite Trump's tariffs still being on the books. There was a significant rally the other day because the US is “only” going to levy 30% tariffs and China will drop theirs to “only”20%! But while the markets go up, long term bonds continue to drop which I thought was a negative market indicator. So are things as mixed up and incoherent as I think? And with this background is now a good time to buy long bonds, short bonds or equal amounts of both?

Appreciate your insight.

Paul F.

Q: Hello. David Rosenberg’s latest per a Globe article today:

“Best to hide in cash, bonds (Treasuries, Ginnie Mae mortgages, high-quality corporates), gold and the miners (silver too), defensive bond-proxies in the stock market that have decent yields and consistent dividend payout growth (stable dividend stocks are up +5% year-to-date), Japanese money market funds (ride the most undervalued currency on the planet and a BoJ set to raise short-term interest rates sooner rather than later), and diversify into the European Defense and Capital Goods sectors which now have more fiscal-related visibility.”

Can you provide some specific ideas (stocks and or ETFs) that match up with his recommended areas to ride this out?

Thanks!

Q: Hello 5i,

I have been retired for 4 years and i am now am about to turn 65. i have a DB pension from my previous employer with a bridge benefit that carries until my 65th birthday in a few months.

I have done some projections on maximizing both income over the course of my retirement. I have determined that in my case it appears that these results are optimized if i defer OAS and CPP until age 70...and i am fortunate that i can afford to do this.

At this point i am in the process of converting a enough of my investments to fixed income products to cover income requirements until age 70 (to avoid short term market volatility and help me sleep better at night). One of the products i am looking at is using laddered USD GICs as they have better returns than CAD GICs at this point. I understand you don't give personal advice but i am wondering if there are other options i should consider? Bonds for example? Other?

Thanks!!

Peter

Q: Hi 5i,

Currently have a large portion of my investments in equities and I am looking to invest in Bonds for the sake of diversification.

Could you provide your best ideas for Bond ETFs or any similar investment products that I should consider? This is for non-registered account.

Thank you.

Greg C.

Q: I hold positions in these two funds as part of the fixed income portion of my portfolio. Looking at their current yields (3.1% & 2.27%) I'm starting to wonder why I don't just put that money into CASH.TO, which is currently at 4.52%.

Am I missing something? Are there other, better funds I should be moving them to?

Q: Good afternoon - the recent runup in equities has me looking to re-balance and add more bond exposure. I currently have positions in XLB, XBB and HYG. Can you suggest bond positions ( likely ETF's) in Canada and the US, please? Just add to the existing Canadian positions? What about HYG? Time to move?

Many thanks

al

Q: I have recently read that actively managed bond funds or etfs, unlike equities or the same, have a better outperformance history. Can you please comment on this? Would you recommend buying into any and if so could you recommend some?
Also do you think there is more room to run from dropping rates?
Those referenced here are general passive funds.
Thanks

Peter

Q: These are some of the bond ETFs you have previously suggested. You have recently noted that, while interest rates are dropping and long-term bonds should ultimately provide the most torque in this scenario, shorter-duration bonds should not be forgotten. Does this suggest that a 50/50 split between longer and shorter duration is best, or would you suggest some kind of uneven split for a retired-income investor looking for stability and reasonable growth? As a general strategy, would you also include some portion be allotted to convertible bonds?

Appreciate your insight.

Paul F.

Q: With the lowering of interest rates, what bond funds to invest in? Bond ETF’s?

Q: Could you recommend 2-3 fixed income ideas for both in a registered and non-registered situation.

Q: Good afternoon, I am realigning my RRSP account using geographic and asset type recommendations. The asset allocator recommends that 15% of my portfolio be in fixed income. Can you please recommend a few fixed-income ETFs? Also, should fixed-income holdings be mostly domestic or include international as well? Lastly, would you consider CASH.CA part of the fixed-income component of a portfolio or simply a place to keep cash until it is directed into another asset? Thank you in advance.

Q: I’m looking to diversify the fixed income portion of my portfolio. I don’t have any bonds/treasuries so was looking at TLT and XLB. Can I get your thoughts on these and others you could recommend?

Q: 2 questions:
In a taxable account what would you suggest to play the role of Bonds if any? I need to beef up my bonds allocation and need to keep cash and cash equivalent in my taxable account where I have new funds.

For a young retiree with a comfortable portfolio what percentage would you allocate to cash and bonds? Volatility is not a problem for me with a long term view.

Thank you
Yves

Q: The fixed income portion of my portfolio is fairly low. Would now be a good time switch from equities into fixed income in bonds, or has the horse left the barn? What would be, in your opinion, some suggestions for fixed income?
Much appreciated.

Q: Hello,

I need to increase the fixed income component of my portfolio. XBB and CBO make up 12% of my portfolio. Please suggest a few more CDN fixed income ETF's I could invest in. I am retired so a more conservative approach is what I am looking for.

Thanks for all your help.

Q: Hoping you could suggest an ETF portfolio for an RRSP account with a minimum 12 years until withdrawals are made. The account is starting from scratch.
Thanks

Q: Can you suggest 10 best (sleep at night) low risk, monthly/quarterly income, tax efficient, Canadian etfs. Monthly preferred but not essential. Held in non registered account.

Q: Hi, I'm thinking of gradually reducing my individual stocks and moving into etfs for an all around set it and forget it roughly $3 million portfolio for someone retiring in the next few months. Can you give me your suggested etfs and percentages to hold to accomplish this balance? A chunk of these funds are not invested yet so I'd also like to know how you would suggest deploying these funds? Would you edge in gradually over a period of time or just get the money working? I'd really appreciate any advice you could give me in this format.
Thank you as always!

Q: Dear 5i team.
As I read through the recent Q's on the merits of owning laddered bond funds vs long bond funds (CLF/CBO vs XBB/XLB) couple of f/ups for you. Assuming rates have peaked, and downward is the consensus:
1) What is the upside for CLF vs XLB for example. How much of a move in bond prices would you estimate for each 50 BP move? (can you do same exercise assuming rates move higher?)
2) Since you like both XBB/XLB for long bond exposure, can both be owned, or should one be sufficient?

Many thanks for your help to understand the risk/reward here.