Investment Q&A

Q: Hi Peter and Co, and a very prosperous New Year to all,

Would you give me your opinion on XTR, the ishares Diversified Income ETF? I've held this for a while in RRSPs and wonder if it is a good choice for the income part. If not, please make some alternative suggestions.
Many thanks

Q: Happy New Year to all at 5I. I have been watching DHX for a good buying opportunity (it is down 3.6% today). Would this be it, or is it a reason to wait and see what may be behind the drop?

Q: BX(NYSE) - I have been selling cash covered (at the money) puts on this stock over 2013 which has been very profitable. Do you see this stock continuing it's fantastic run-up in 2014? Thank You Ron

Q: My daughter is 20 years old and is just starting to invest over the next 45 years .I have convinced her to open up a TFSA She is starting with $ 4,000 .I would love some advice on getting her started

She is still a university student and has very limited income

Thank you for this great service

Paul

Q: Team

In a recent response, you mentioned that you felt Tech, Industrials and Energy will be the sectors that lead the way in 2014. A couple of months ago you responded to my question relating to ideal sector weights (using 5i sectors) as:

Capital Goods / Industrials 15%
Consumer Cyclical 10%
Consumer Staples 5%
Energy 5%
Financials 10%
Health Care (CDN) 3%
Health Care (US) 5%
Information Technology 10%
Internet / Software 10%
Materials (Gold) 5%
Materials 3%
Real Estate 3%
Retail 4%
Telecommunication Services 5%
Transportation 5%
Utilities 2%
TOTAL 100%

Is this still your ideal breakdown for investors (profile = young + risk on), if not, what would your ideal current weights be given a blank slate today (ie. higher in energy weight)? I know there is fluidity in all of this, but I am about to deploy more capital and am trying to determine what sector to put it in so I can be as close to the 5i recommended weights as possible, thank you.

Q: Victoria Gold Corp (VIT) is currently trading around 11 cents a share and is rated as being undervalued. Do you believe this is a good time to buy for the long term?

Q: could I have your opinion on dynamic alpha performance fund
FT(2198) wilf.

Q: We are all aware of the impact the increased bond interest rates have had on the reit sector.In your replys to questions on this subject you repeatly say we should not expect too much capital gains in this area.Do you feel that the future increase in interest rates will impact the current stock price or is most of the reduction in stock prices now mostly built in?
Thank You

Q: Hi! If you were looking at your 5i Model Portfolio for the first time, which 4 stocks would pick to take a position in today? Thank you!!!

Q: getting very concerned about STN, peaked in December at $72.34 and now $64.10, can take a very nice profit, time to say so long?

Q: I have been considering Enghouse (ESL) as I can now put some money in my TFSA. However, I noticed Descartes (DSG)and started comparing to ESL. I read your previous comments and they do not indicate any leaning to one or the other. The market caps are similar but ESL has a lower P/E. What is your opinion of these two? Thanks in advance.
Gary

Q: Since MRE is so cheap, what are your thoughts on it being taken over by Magna or the like?

Q: I have been a member from the early days of your service. I have benefitted from your advice and from investing in some of your picks. It has only been recently that I have taken the time to do more in-depth study of many of your best ideas and am making some adjustments to my portfolios as a result. I have learned a lot from you answers to members questions and have been a amazed at your patience with so many Q's! This is my first! I think 24 a year is more than enough! I feel that some do abuse your service rather than taking time to do their own research. My Q is regarding CEU. It looks good to me in terms of past performance and future prospects. What do you think?
I am most positive about 2014, not only because of market and economic trends but because of your wonderful advice.
Happy New Year! Alan

Q: Cam asked, on a post yesterday, about a symbol "PSN". I can find no "PSN" listed anywhere - there are two Poseidons listed in the US but none with "PSN". Out of curiosity, I wanted to see if there was any technical indication of a big one day drop. Can you tell me where to find it?

Q: I am 68 years old and retired. I would like to start building positions in your model portfolio. Considering which sectors you believe will do the best in 2014, would you name those sectors and suggest 2 of the stocks in your model portfolio that you would buy now in each chosen sector.

As always, thanks for your guidance.

Q: An offering of AIM Pr. share this morning. It is a P3. Could you give me your opinion please.Thanks.

Q: Re the question by Keith on CDZ, I don't think a dividend of 6.9% is accurate. With this ETF (and others), the December distributions are always higher than those for the other 11 months of the year. For 2013, 14 cents versus an average of 6.5 cents January to November. Total distributions for 2013 are about 85 cents, which provides an annual yield of about 3.5%.

Q: Peter and 5iResearch Team,
Can you please provide advice regarding the # of stocks to hold in a portfolio, assuming one would have a cash, RRSP and TFSA and that we are referring to the equity allocation of the portfolio. I have understood that 20-25 names would provide good diversification, yet one of your members recently confirmed he added 15 names to a $35K TFSA portfolio and you suggested he might want to add one more name? You have 20 names in your model portfolio of $135K. Can you clarify??

Q: Re: Financial 15 Split
FSN
How do these people get a 15% yield?
What do they terminate at?
How big is the risk?
Thanks
Ken Beatty

Q: Happy New Year
I was thinking of diversifying into the US and was thinking about using etf's. Can you give me your thoughts on this and which ETF's I should consider at this time?
Thank you