Investment Q&A

Q: For someone looking at a retirement in 2 - 3 years that will be funded by personal investments, I am having trouble formulating an investment strategy that would currently include fixed income investments. Fixed income securities seemed destined to only go down in value in the foreseeable future as interest rates rise so why would I want to invest in them? Pipelines, utilities and telecoms may also drop but their yield is currently quite good and secure and capital appreciation is always a possibility, if not a probability, in the longer run.

It seems to me that much of the argument for holding fixed income assets is to ensure the preservation of one's capital. But if I am ultimately going to invest largely in quality dividend paying stocks eventually anyway to fund my retirement is capital preservation the main concern? Isn't dividend "preservation" more the issue?

I feel like I am missing something because it seems that all advisors, planners and analysts strongly suggest there be some fixed income in a portfolio, especially as retirement nears. What are your thoughts?

Appreciate the insight.

Paul F.

Q: Will be doing some re-balancing early next year and would appreciate your thoughts/ considerations/ suggestions.
Can. Tech :
Own CSU, DSG, and ENGH. Will keep CSU - which of the other two would be the better complement and the keeper?
Can. Industrials:
Own CNR, NFI, STN and SJ . Will keep CNR and NFI and leaning to STN due to SJ small over-lap with CNR but would appreciate your thoughts.
Thank-you.

Q: Hello Peter and Ryan,
Without knowing my portfolio details, I know it is hard to give advice. However, I do have a diversified portfolio and am looking to add a long term growth stock and a dividend paying stock without using my cash. I have to sell a stock and replace with another. I constantly hear good things about Spin Master. I was thinking of selling Alterra Power corp and Brookfield Business Partners and use proceeds to buy Spin Master. Does this switch make sense? Kinder morgan (aside from protests) has had good news with government approval and potential sale of their assets. However, the stock is not moving which is surprising. Is it worth holding or replace with ENB and TRP to get some growth and dividends. Lastly, Magna and Linamar have had good gains. Time to sell or let them run? Please let me know. Thanks again

Q: I have owned this stock in the past and would like your opinion on it at this stage. I would like to place 3% to 5% and hold for 3 to 5 years if in your opinion it has good growth potential and is well managed. Thanks.

Q: Hi,

I know US holdings aren't your main focus. I'm currently about 20% down on CALM. Do you think they're worth holding onto or do you think there's a different US company in the same sector that I would be better off owning? My time frame is very long on this one.

Thanks!

Q: With the PAL Aerospace division of EIF being part of the consortium to win the large Canadian government contract announced yesterday, how long into the future do you think it might be before we understand how truly beneficial this will be to EIF? Would you consider the announcement "material"?

Regards,

Robert

Q: I have a fairly large sum of money to invest from an estate and I am primarily interested in just taking the dividends and keeping the principal reasonably safe. I was thinking of the Brookfield companies and Canadian Banks however just wondering if you would have some suggestions for a couple of other companies in different sectors. I would like to try and get close to 5% on the dividend.

Q: Looking at building my USD assets and then investing it in Vanguard ETFs. Would you invest in the S&P500 or maybe the specific sectors such as consumer staples? If so, what percentage would you put in each sector? Ultimately I would like to invest in specific companies but there is no 5i US equivalent so this would seem like the next best alternative.

Q: I'm looking to eventually add both of these but only have cash for one at the moment. Which would you open a position in today?

Q: What would be your choice between these two for growth in the coming year bearing in mind interest rate hikes and the Trump administration effect? Would appreciate hearing your reasons. Thanks again.

Q: I know 5i often recommends IWO for US small cap exposure, but what are your thoughts on IJH (Ishares S&P Midcap 400)? This etf caught my attention just before putting in an IWO buy order. By comparison over 1, 3, 5, & 10 year periods this midcap ETF has consistently outperformed, has higher volume, a higher dividend, and appears less volatile. Am I missing something, or could it possibly be a better option than combining 2 small & large cap ETFs for US exposure. Thx again as always.

Q: I have always struggled to categorize into sectors the companies I own. What guideline would you suggest to use to make this exercise accurate and hence more meaningful.

Q: Hello 5i team,
Thanks for the quick 2-3 hour turnaround response about CIGI, except that the second part was about MDA (not MG)
Thanks,
Antoine

Q: Would you add shares to a position of this company today?

I have a 2.3% weighing in the stock initiated at $54 back in spring 2016.

Q: Seasons Greetings: Please deduct the number of questions that you feel is fair. I have been smoked by NBZ and ready to walk away. My advisor is suggesting putting the remaining $$ I have left from the sale into BTE, BNP or TCW as to remain with the energy theme.

Your thoughts and suggestions will be greatly appreciated.

M

Q: My question is on RPI.un. I have held it for about a year, and have done fine. It now looks expensive, but its EBITDA and earnings are impacted by a line called "contingent consideration revaluation" apparently related to their last acquisition. What does this mean in plain english? Will it continue to impact earnings going forward? How often do they increase their dividend? Finally, how would it compare with WPK? Thanks.

Q: Hello 5i. Can I get your analysis on this Reit. The 5 yr chart shows a downward trend from $16 to current $12 mark. Shows a yield of 9%. I like the company's portfolio of properties but as an investment I need a 2nd opinion. I currently hold REI, CSH, HR, and CAR. As I am selling my xre etf need to redeploy the capital in another reit.
Thanks for the great service

Q: I decided in early November to use your service and construct a portfolio mirroring the Balanced Equity portfolio of now 23 stocks. I tried to acquire each of the equities below the October 31 closing prices however the above three have galloped away and are the only ones I haven't yet acquired. Should I continue to be patient and await a pullback or should I take the longer view and buy at this point even though each of the three has moved strongly higher in the last month or so. Alternatively is there another equity(or equities) or ETF to consider in place of the three that you'd recommend. I have bought only one-half of the amount of each of the securities I expect to eventually purchase and have maintained the balance in cash as a matter of caution. All of these funds are held in an rrsp. Would you recommend moving ahead with putting the cash into these equities now and holding only a 7% cash position at current valuations. My time horizon is 3 to 5 years. Many thanks for your advice!!

Q: I want to sell Black Diamond for a tax loss against a gain in some of my CSU but I don't want to miss out on any rally in oil services stocks. Can you recommend anything I can replace it with?

Q: I did not heed your advice to purchase to purchase Magna when it was a top pick of yours a few months ago on market call. Is it too late to hop back in? Do you see some more upside?
Thank you

KR