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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: Hi Peter & team
We went from about 95% cash just before the crash to 45% today. We've been expecting a drop to occur from Q2 results and thus are not fully back to where we were before Covid began. But we are also seeing the markets continue to float higher (tech, financials). We'd appreciate any guidance you can offer on the pros and cons of going back in more fully now or waiting 2-4 more months. Do you sense there is still a lot of cash waiting for another quarter to pass?

I read a statement that said, "Wealth is good provided everyone is wealthy". You are decisively helping that advance ...
Many thanks
Read Answer Asked by TOM on June 03, 2020
Q: I am divesting my recently deceased father-in-law's estate and seeking advice regarding the order in which I should be selling his equities over the next six months. He owns banks (BNS, BMO, RY, CIBC and TD); energy (SU, IMO, TRP) and OSB. Your thoughts most appreciated. Thanks.
Read Answer Asked by Maureen on June 03, 2020
Q: Hi team,

What do you think of UFO for space play? It think the space should do well in the coming years with the USA now depending on homemade solutions. If you agree, is there any company or ETF you would suggestion in place of this UFO?

P.S: I, as one of your early members, must say that I wish you would have allowed questions on US stocks much earlier. And I am relieved to hear that you are going to continue with this added value service. I keep coming to this site indeed because I want to learn from your answering questions about the US stocks. It is not a secret that Canadian Markets have hugely under-performed their US counterparts.

Thanks for all you do for us!
Read Answer Asked by Saeed on June 03, 2020
Q: could I get your opinion on the deal between Telus and Huwaei for their 5G equipment and do you think it could be detremental to their business,or is it something they could get out of and go with another supplier,also what percent is their health business to their overall business,thanks and use extra credits if needed
Read Answer Asked by Greg on June 03, 2020
Q: Have held Visa for some years and possibly one of the best stocks I own .recently I bought Square I guess its doing okay.
I had not paid any attn to PYPL. recentlyone of your answers you out pypl visa and sq on about the same level.
I watched the MadMoney featuring Pypl as your other caller referred to . it was impressive . I don't quite under stand where and how these Companies intersect/overlap. . is pypl encroaching on visas territory.? and SQ where do they come ?
I would love an explanation in layman terms
Read Answer Asked by thambirajah on June 03, 2020
Q: I own KXS and and OTEX for the Canadian tech component of my portfolio.
1)Would you suggest adding a third company and if so what would you suggest? Or Would would you prefer adding to the position in KXS (even after the share appreciation)?

2) What is your top pick for US Tech at the moment?

Thanks
Read Answer Asked by Jeremy on June 03, 2020
Q: Predictmedix Inc (PMED on CSE) has became 14 times from March 20. How much growth you see in this stock? it's a good time to buy ?

Thanks,
Read Answer Asked by vipin on June 03, 2020
Q: I often see people make the following comment on your site, saying to the effect that they cannot realize a loss on a stock because it’s in their RSP/RIF. They really can, and usually to a much greater benefit than in a non-registered account. It’s how you look at the issue.

Withdrawals from RSP/RIF are taxed at your marginal tax rate. The taxman is sharing in your loss, should you decide to sell, they’re just not sharing in the same tax year when you sell. Their ‘sharing’ comes when you withdraw funds.

To give an example of this:

At a $50,000 income level, the combined Provincial (Ontario in this case, but all are similar) and Federal income tax rate is 30%, and the capital gains tax rate is 15%. If you took a $20,000 loss in an RSP/RIF, upon eventual withdrawal, you’ll be paying $6,000 less in tax (because you won’t be withdrawing what isn’t there - because you would have sold already). Had the sale been in a non-registered account - and you suffered the same $20,000 loss - you would only be saving $3,000 in taxes, because the capital gain rate at $50,000 income is only 15%.

At $93,000 income, tax rate is 38%, and capital gains tax is 19%. Using the same example, a $20,000 loss would mean that, upon withdrawal, $7,600 less will be paid in tax versus had the loss been realized in a non-registered account, the capital gains tax saved would only have been $3,800. The higher the income, the more this scenario plays out to the individual’s advantage.

It’s a different way of thinking about it, and I realize that one doesn’t want to see a loss in a registered account because the funds cannot be replaced, but putting that aside, the taxman most definitely shares in your loss in an RSP/RIF, to an even larger extent than they do with capital gains. it’s just that you can’t ‘see’ it, you have to think about it. But it is the long game.

At any rate, just another idea, and please publish if you feel it is worthwhile for your subscribers.
Read Answer Asked by Warren on June 03, 2020
Q: Sis is down 0.38 now. It is moving its CFO function to Ont. from Laval & CFO is leaving at a later date.Any other news Real.As per earlier Q,CEO is selling 750k shares(15%) starting Aug 4 over a year period 9lus donating his balance of 2.9m shares to charities.The big Q here is we do not know what the charities will do with the shares.Possibility they will sell as cash is more important than equities.Ceo does not have to pay capital gain on the donation Txs for u usual great services & views
Read Answer Asked by Peter on June 03, 2020
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