Investment Q&A

Q: Hi 5i,
1. With ACB’s recent earning release the stock price jumped from $ 8.50 to $10 Following day the stock price dropped and now around $6.50. What’s do you think is going on with share price? Short action?
Would you be a buyer at current price with 1-2 yr horizon. Likelihood further downside from here?
Thx
Jim

Q: The Fed has basically said that it will keep interest rates low for the foreseeable future, and allow inflation to run a bit higher, to average 2% longer-term.

It looks as if we will be heading into a new investment environment where interest rates could be lower than inflation for an extended period of time. In this type of environment, what factors, sectors and geographic regions do you see doing well? Given the high current valuations for high tech and FAANG stocks, do you continue to recommend overweighting this sector for the next few years?

Thank you for your valuable insights.

Q: I would appreciate clarification about US estate taxes. I have found conflicting information on the internet as to when they apply. A BMO FAQ ( http://www.cetfa.ca/files/1551199672_bmo_etfs_-_faq_tax_season_en%20(1)%20-%20Updated.pdf ) states:

High net worth Canadians with worldwide assets exceeding US$11.4M
(2019, indexed to inflation) or have U.S. assets with a value that
exceeds US$60,000 may be required to pay U.S. estate tax on
the value of their U.S. assets. Canadian ETFs are generally are not
considered U.S. assets.

My understanding is that if Canadians held US ETFs, and their net worth was less than $11.4M US, then Canadians did not pay US estate tax. Is my understanding correct? On the internet, I have also seen references ( https://www.taxtips.ca/personaltax/usestatetax.htm ) to a $1.2M US cutoff figure before US estate taxes apply.

Thank you in advance for clarifying this information, and for this wonderful service.

Q: With an increase in air filtration and virus filtration for subways, planes and private homes, what companies do you recommend?

Q: Hi Guys,
Please provide a recap for Costco most recent quarter.

Is it still a keeper?

thanks
Jim

Q: Hi 5i,

So CSU spins out Topicus and the stock trades on the venture. Globe and mail states that Topicus’ equity value is $1.86B ($1.2 billion euros). Assuming that this is also the market cap, this would Topicus the largest stock on the venture. Some institutional money may have to sell due to restrictions (e.g. like not being able to hold companies that trade on the venture).

This puts downward pressure on the stock. It trades at a discount.

It then starts getting traded on the TSX and large institutional money flow back in. In addition, being a stand alone company gives it a higher multiple.

What do you think?

Q: good morning
I've been reading about Ford committing to manufacture electric vehicles in Canada, starting in the not so near future. What, if anything, does this mean for MG, for a longer term investor? Also, are there any other Canadian companies that will derive significant benefit from the Ford decision, and what would be the timely approach to investing in this direction? As always, many thanks.

Q: Tax question. If a Canadian donates to a charity not in the Canada, can the donation still be tax deductible? I would like to donate to the wild fire relief in the Pacific NW and can only find US charities accepting donations for that purpose.

Google has an easy way to donate but they say "If you are a resident of Canada, your donation may not be tax deductible. You should check your local tax regulations and consult with a local tax professional to make sure."

I don't have a tax professional so I thought I'd ask here.

Thanks!

Q: Jeff Brown and Chris Hunt who work for a financial firm - they have been online recently predicting the market will drop 92%. They have a picture with red arrows and charts, etc. I do not know them. Apparently Chris Hunt made many predictions over the last while which have come true he claims. The last one being his prediction of the sell-off in March. Larry Berman who is well-known is also bearish on utube - his recommendations are usually short plays. Is this just standard when the market has more downs than ups? Should we take these comments seriously? I appreciate your advice - thanks, Dennis.

Q: Looking to see if this one is on your radar at all, and if so what your thoughts might be on potential.
Thanks

Q: Do you have any Post pandemic suggestions?

Stocks or sectors?

If you find airlines and Cruise lines too precarious at this time, what does work for you?

Q: I was considering adding Walmart or Costco to my RRSP account. Would greatly appreciate your comments. Thanks so much.

Q: This stock stumbled 20% over the first 3 weeks of September.

Any insight into what was happening and future strength / weakness?

Thanks

Q: Hi 5i,
Will the CSU spin out of Topicus be a taxable event? I hold CSU in a taxable account with an as yet uncrystallized capital gain. I would prefer it if there were a way for me not to have to take the entire capital gain in the current tax year. Thanks.

Q: when reporting US-CDA conversions for capital gains and losses, does one use the trade date or the settlement date? Thanks

Q: Greetings!
RE: Trying to get the hang of Tax loss selling

Our holdings in Chartwell is down 17% and Sienna down 13%.
Comparing both on a 12 month chart seems to indicate more resilience with Chartwell.

Does it make sense to sell Sienna, take losses then on the same day buy Chartwell?

Cheers!

Q: Would you have a strong preference for one over the other? Which do you expect to have the best growth potential?
Thanks,
Barry

Q: My daughter is selling BNS for a tax loss. For a replacement would you favor a US bank like JPM at this time or another Canadian bank like TD or RY? Her other financials are BAM and GSY.

Q: Good morning team,
Your comments please on TMX group acquiring AST trust company
thank you!

Q: Thank you to the entire 5I team for your wise advice which helps us make important decisions for our lifelong savings. That said. There are many uncertainties as a second wave of COVID approaches, the American elections which are already problematic, not to mention the results which could be contested and which would plunge the market into great uncertainty. Couple this with the tax season losses and you have a month of October and November that should certainly be very volatile. This leads me to ask a question of market timing, yes I know no one can predict the market but for stocks that have fallen a lot this year like those offered in this question and that I own, is it not timely to sell before sales season and buy them back or other bargains during tax season?

Thank you

Yves