Investment Q&A

Q: It seems commodities have risen and many are hopping aboard this train.
However at some point, will we not reach a limit to the amount of appreciation from demand destruction? Not many people have rising incomes which would boost demand.
I speculate that rising commodity prices without rising demand and incomes is a currency play only on a weakening $USD and one that could reverse.
What is an investment strategy that benefits from deflation of a commodity trade not including short-based approaches?
TIA

Q: Peter have you read the article from The Beacon Newsletter re battery storage in California . At location of Moss Power Plant.
Looks like it might provide some investment opportunities in this growing space.
Might not be too many in Canadian market.
Worth a look.

Q: Hey 5i,
Just looking for some clarification. When you reference your favourite growth companies like XBC, WELL, and LSPD in general or against larger cap stocks you usually say they are “higher risk”.

I understand that smaller, younger businesses are higher risk but when you say this- is this more as a “volatility risk”, “default/failure risk”, “downside risk”, “explicitly relative risk against larger caps but you remain very comfortable with the stock outlook”, etc.?

I’m asking since I am in my late twenties and holding these for long term. I actually enjoy volatility since I’m able to swing in and out of the stocks. I just want to make sure that I have this captured correctly.

Q: do you think telus spinning out telus international will give telus shareholders shares in new company or at the least a discount.

Q: Good afternoon 5i. At the moment I am invested only in Canada and need some international exposure. Could you suggest a couple of ETF's with a decent dividend, around 5%.
Thank you

Q: Hello Peter,
Constellation Software will give existing shareholders Topicus shares (based on their formula) as part of the spinoff but it does not look like Telus will be doing the same(give existing shares the international arm shares in the form of dividend).. What are the plus and minuses of what both companies are treating the spin offs? I was expecting XBC to surge slightly going to TSX as it the stock would attract more institutional buyers but looks like the stock is taking a pause.. . Well seems to be doing the same.. Any comments on this? Thanks very much.

Q: I picked up a small lot of this in the sell off last year on a spec..
It seems to have come alive this year and having a nice move today. Nearly back to IPO price!
What do you think of it today? Worth buying more?

Q: Hi 5i,
In answer to Dan's question on 6 tech stocks this morning (Jan. 11) you rated DCBO second last as a candidate for a long term hold.
I also wonder about DCBO. I'm currently up 50% and I wonder if you think it still has runway - like you think about LSPD for example - or if you would conclude it may well be at or near the top of its ascent? Without a dividend I have no reason to continue holding DCBO if it's given me all or most of what it's got to give but, frankly, I don't know how to set a target price for a tech stock with either its metrics or its momentum.
I'm cognizant of your oft-given advice to guard against selling winners too soon (which I've done my share of and which I'm trying to avoid) but I also think there must be times when one has to conclude a stock has met its potential, or nearly so, and it's time to realize the profit and deploy the funds elsewhere. Could you advise what you think about DCBO in this regard?
Thanks for this, and for all the rest of your very helpful guidance that I benefit from.
Peter

Q: looks like an interesting company in the entertainment business no debt huge insider ownership clients include Netflix PBS CBC. etc.prominent shows they have produced include Kims convenience highway to hell. your thoughts. please thanks Richard

Q: Despite central banks committing to not raising short term rates in the near term, 10 year yields have gone up a fair amount lately. Is it true that with the 10 year yield rising on its own, commercial banks will begin to raise their mortgage and other lending rates? And if so, why? Thanks.

Q: To follow up on your answer on GSG and DBC
Would you prefer these to ETF like XBM?

Q: Can you comment on this company? Apparently, they are a lithium ion battery recycling company.

Q: Hello 5i team
As a front line (nearly retired) physician, I recently received a Covid 19 immunization. It's difficult to express the REMARKABLE sense of gratitude and euphoria that I observed among everyone involved . Suddenly, we felt liberated from the danger of this scourge that we face daily. Our next exciting job is to immunize our fellow citizens as fast as humanly possible and as we do, this euphoria will spread to society at large.
After my immunization I bought a new car and we're booking our fall and winter travel plans. This manic behaviour, I believe, represents the tip of the iceberg for pent up demand which will be unleashed upon the world.
At the risk of being labelled a mercenary can you identify some sectors which are still beaten up and likely to surge-I'm thinking energy but other suggestions welcome (prefer etf's with a dividend to keep me invested until the recovery occurs-would supplement with high conviction stocks)
Thank you. As always, I value your opinions, Regards gary

Q: Telus just announced IPO of Telus International. There is very limited information so far. But it seems to be large enough with listing in USA and Canada.

Based on the limited information, does this make Telus shares more attractive?

Q: Hi team,
What do you think of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) as an investment ? What would you compare it to ? Is it really more advantageous than other investments in a RRSP, in term of income tax ?

Grateful for your views.

Jacques, IDS

Q: Sorry if this question is being asked again. I am not sure if I hit the send button! My son asked me look at his investments. MAW 106 24%,MAW 150 20%,VUS 21%,VEF 18%,,VEE 8 %,ZJG 6 % and XQQ 3%. He is in mid 30's a bit risk adverse but does realize things go up and down.As you can see in he into ETF's and no stocks. Do we have any overlap ? Or are the holdings sufficiently different. Any thoughts appreciated and a Happy New Year.Paul

Q: In a previous answer you suggested GSG for commodities exposure but when I read the entity description I cannot understand what it actually does. I respect your suggestions and would appreciate an explanation of how GSG works. Thanks. Also, any other ETF suggestions for commodities exposure that is a little more understandable for an old timer like myself. All the best

al

Q: 50-yr old investing for retirement. Have historically been a dividend fiend but open to juicing the growth side a bit more as a result of the excellent advice I can now obtain from 5i. Considering adding to either my consumer defensive/staples allocation or increasing international exposure (the latter via an ETF). Hoping you might help me deploy a half position in an RSP and jump in one direction from a corner of the fence (and understanding you can't personalize such advice) - considering initiating a position in NWC (CA), PBH (CA), or WMT (US) or adding to an existing position in ZWE (European covered call ETF). My current geographical exposure is 34% US; 33% CA; and 32% International (XEF, ZDI and ZWE). My total covered call ETF exposure is around 8% of my equity portion and geographically diversified. Other suggestions for staples and international ETFs will be appreciated. Thanks for the great service!

Q: Hi
Not overly familiar with preferred shares but could explain the upside and downside of exchanging my BPY.UN shares for the preferred shares. You can trade one BPY unit for 0.66 of BPY Class A Cumulative Redeemable Perpetual Preferred Units.
It looks like there are 3 kinds of Class A prefs.
1. BPYPP 6.5%
2. BPYPU 6.375%
3. BPYPN 5.75%

So with your explanation could you tell me which of the 3 is in the offer. Given the trade is only .66 shares would the actual real return be .66 of the stated return on the prefs

Thanks
Jeff

Q: How would you recommend investing in the oil industry which may have a bounce back in the next year? Are there other ETFs you would recommend? Thanks for your great service, Bryan