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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, Ryan, and Team,

In your recent answer to Cyril, (Feb. 2, 2018) in which he asked about your recommended sector weightings for 2018, you suggested the following:
"For a general, growth focused investor: Real estate 5%. Financial 10%. Healthcare 5%. Info Tech 20% . Materials 10%. Utilities 5%. Energy 5%. Cons. Disc. 10% Cons. Staples 5%. Industrial 20%. Telecom 5%."

In general, how often should one balance sector weightings? Specifically, in my case, I find that, as an example, I'm quite a bit overweight in Financials, but am reluctant to sell any when they've recently declined (although I'm in the black with all of them except for AIF). On the other hand, there seems to be some "bargains" in some of my underweight sectors such as consumer cyclicals, industrials, information technology, and materials. Unfortunately, I only have a little excess cash to invest, so I'd really appreciate your guidance on what to do with my dilemma.

Your advice is very valuable. Thanks in advance.
Read Answer Asked by Jerry on February 07, 2018
Q: Hi Team, I have done some reading on Blockchain technology and sense that it is an area to invest in and although many people would agree with me everyone seems confused about where exactly to start an investment. Gambling companies handle a lot of money in every form, across a lot of venues so security must be a number one priority for them. It appears eXe has a contract to develop a process for online gambling payments using cryptocurrency to convert monies back to good old cash. Is this a stock to start an investment in or does the 5iR Team have any other cryptostocks they might recommend? Thanks, Chris
Read Answer Asked by Chris on February 07, 2018
Q: Hi 5i: I'm still considering a purchase of AFLAC. The news regarding employee complaints seems no worse, though a few legal firms have made it a point of announcing that they are investigating. Re its quarterly report, I find it hard to decide how well it's doing given the tax effects and yen currency effects. What is your assessment? Do you think it's buyable yet?
Read Answer Asked by Roland on February 07, 2018
Q: You commented last week to Patrick about TBT.
I think that recent negative returns were related to the latter stage of the long bond bull market. This has been reversed quite impressively since january. Bill Gross was probably right from hindsight in his call for a new bear bond market.
So, as a growth investor, the idea of increasing returns on an otherwise meagre income from the fixed income part of my portfolio is quite appealing, and does not come out of worry on the market, but from seing an opportunity, and using it with reason.
Then, if I want to benefit going forward, like the next 6 months, of the general bearish trend on bonds that I believe fundamentally justified based on trade, currency and other issues, would TBF be a better bet for one holding that view?
Thank you
Read Answer Asked by Daniel on February 07, 2018
Q: Some context please to a common expression you hear on BNN.
When advisor/analysts on BNN say they will buy a stock on a "dip" or a "pullback", what do they mean? A 1% drop, a 5% drop, a 10% drop.
I am retired and looking for dividend payers as my source of income. Of course everyone wants to only buy LOW, but not always possible. I like to add to strong positions but wonder when that is advised.
Cheers.
PS I submitted this question early yesterday before the market drop so my question seems even more timely....for some reason it didn't show up in your question section
Read Answer Asked by Peter on February 07, 2018
Q: Hello Peter.
How does an investor know he/she is a shrewd investor or a Sucker(buy from another investor who gets the price direction right)? It is starting to feel like Holders of our prime Canadian income investments have sucker written on our forehead.

The question here for me is how to create an investment portfolio that gains from where the capital is going instead of holding investments seeing capital retreating. The current reset of Income stock prices has been quite stunning; ENB down 14% since Jan 4.
It would be great to buy ENB with a 6% Dividend......But is it the same company everyone thinks of from days gone by or has it changed and without investor positive sentiment and a stronger US$ .......it will continue to be burdened by debt and a lowering stock price?
In a diversified Portfolio holdings include income investments. But just because an investor is interested in the income stream, does not make it right to watch the capital value decline everyday.

What is it that makes buying ENB okay at $50 and then as it declined all the way to today's price of $43.11?
It kinda feels like a roll of the dice to bet on a higher price for ENB at this point in time.
What is it that makes buying ENB a shrewd investment at today's price and in the current market environment?

Thanks for the thoughtful answers in the Q&A.
Dave
(this question could have just as easily been about ALA, IPL, PPL, FTS or EMA)
Read Answer Asked by David on February 06, 2018
Q: Hi 5i: I'm still on my quest to reduce the number of stocks in my RIF in the most defensive way possible. In my IT sector I hold:
AIF (or is that in Real Estate?); GIB.A; KXS;
FB; GOOG; RYT (ETF).
Could you suggest the best way to reduce this to 3, say? Any suggestions on how to proceed given the current sell-off? Thanks Roland
Read Answer Asked by Roland on February 06, 2018