Investment Q&A

Q: I've marked this question as private but if you feel the broader membership would possibly benefit from it - and more so, the answer, feel free to post it as a public question.

We have one kid who has just finished their first semester of university and a second one who is expected to enter their first year next September (2024). We have a decent sized family RESP consisting of 39% CASH.TO, 35% XWD, 14% HEQT, 7% XBAL, 3% KXS and 2% in cash.

I know portfolio weightings are personal but I'd like your take on maybe dialing back the potential risk of the current holdings, given both kids are/will be in university within the next nine months and the relatively short overall timeframe (4-5 years) the funds will be used in.

I came across an interesting article by Justin Bender on the Canadian Portfolio Manager Blog from Jan 2023, looking at an RESP "glide path strategy" based on the age of the kids that recommends by the time a kid started university that - to err on the side of safety and capital preservation - equity exposure should be 0%, with the RESP funds divided between short term bonds (ETF's) and cash equivalents (HISA ETF's) on a sliding scale of 75%/25% bonds/cash equiv year one of school, 67%/33% year 2, 50%/50% year 3 and 100% cash equivalents by the time they're starting their fourth year.

Can I get your opinion on this particular glide path strategy and if you agree with it or if you would do things differently? If you'd do things differently, what would you suggest as an alternative strategy?

Many thanks for your insight and perspective and all the best for a very Merry Christmas.

Q: Looking for some high safe dividends. What are your thoughts on these three.
Rate 1-3.

Q: Between the high interest savings account ETF’s CSAV, PSA and HISA, would you have any preference for one over the others for an RESP where the kids are in and soon to be entering university? Thanks and Merry Christmas!

Q: I still have my small position in Lucara Diamonds and it still a diaster. CEO was replaced a couple of months ago and the former CEO came back. Under the former CEO Lucara made an agreement with an Antwerp gem polisher (HB)where they would send there large special diamons, which the Karowe mine in Botswara often find, to HB for polsihing and cutting. Lucara would then get cash flow from the finished products, (potentially higher margin and more steady cash flow). Well the new CEO wants to end that agreement. The open pit mine is still profitable but the development of the under ground mine has hit snags (namely water filtration in the raised shafts) and the finish date has been pushed back another year. What 5i could help me with is a better understanding of the outlook for diamond prices. Every where I look for on outlook on diamond pricing requires a subscription and my position is simply too small to warrant paying a subscription. In the end, should I just dump this dud or hang on a while longer (It is in a TFSA so no tax benefit.)?

Q: I have been looking to add some exposure to preferred shares. In the USA there is a fund with the ticker PFFA which is trading well below par which makes the yield just shy of 10 per cent. If, or better said when yields start falling (And I hope that doesn't happen too soon.) this yield would be even enticing and the fund should move up in price closer to par which would give some capital appreciation. Also the CAD is nearing 75 cents which I see as on the upper end of its trading range. Am I missing something? It has a safe (ish) yield, potential for capital appreciation and is in USD all of which I like. Merry Christmas and a Joyful start to 2024.

Q: Which 5 Canadian and 5 US companies would you buy for pure growth over the next 6 months? Can you provide a bullet for each on risk and main reasons for selection?

Q: Which growth US$ ETF's would you recommend that have low dividends, low volatility, and good past performance.

John

Q: I believe that MEQ announced earnings in the recent past. Can I please have your take on the earnings results and your overall thoughts on how this company will do in the next 3 to 5 years. Thank You.

Q: I saw last week that PPL bought some operations from (I believe) Enbridge for app $3.1 Billion. Was there any indication how they were planning to finance the acquisition? I am wondering if they will be selling additional shares in the public markets

Q: this is a gold rated etf with morningstar, but if relied on for retirement income , what are chances the distributions could drop well below the current stated 6.4 %

Q: can you recommend a US mid-cap ETF that sells in US and one in CAD?

Q: Payer; Does RUS even come on the screen for an acquisition re todays Nippon /US a steel deal ? Thanks.
Rod

Q: Questor QST is at 52 week lows and still can't seem to get an traction with their sales or rental of equipment that burns waste methane emissions. The CEO was ousted and then quickly reinstated. I understand that she got a termination settlement and then a signing bonus when she came back. If so is true then the BOD is really a bunch of clowns posing as buiness people. The auditor has also been switched, Does this happen oftem? I still have a small holding in this loser company. I don't think I will sell before 2024 in case tax loss selling is driving the the share price even lower, but I think it is time to run from this dog of a stock. 5i used to kind of like this company. What is your opinion now?

Q: I have room for one Cyber security stock. Can you compare PANW to CRWD for growth.

Q: Hi There,

I never sold my MRS shares. In my brokerage account it shows that I still own 9000 shares. I noticed that MRS no longer trades. How do I sell my shares so that I can claim the loss on my 2023 taxes? If I cannot sell them, do I still get to claim the loss on my taxes since they no longer trade?

Any guidance you can provide will be greatly appreciated. Thank you.
PS - I use Questrade if that helps. Don't know if I have to make a 'request' to take action on the shares, etc.

Thank you!
Gone

Q: Season’s Greetings 5ir staff

I sold a stock with a tax loss on Nov 21. The settlement date was Nov 23. What is the earliest day that I can place an order to repurchased the stock (with the settlement date typically two days later) without triggering a superficial tax loss.

Thanks! I am grateful for all your guidance, insight and analysis.

Q: These are all names that have come up recently in Q&As. Which one do you think has the most upside from here? If you had to pick one to own as part of a 10 stock portfolio which would you choose? Thanks.

Q: https://braxtonwm.com/

I am interested working with Braxton Wealth Management. Can you give me your opinion on this particular wealth management company.

What are your thoughts on their investment / management style.

please be candid about your thoughts, pros and cons

also are there any tax implications by dealing with a non canadian company?

thanks

Ernie

Q: your current thoughts on oatly and beyondmeat please; each for medium-long term holds.

Q: Just to add a line about the rif withdrawal reported by Judith, i did my withdrawal earlier than scheduled. I had it scheduled for dec 15 and i did my withdrawal somewhere around the 10th. I thought there might be the possibility of error and so i called back on the 14th to check. Everything was ok. But, in doing so, i also noted that when you click the drop down box for rif contributions, it noted that the contribution had been made. Maybe a worthwhile thing to check in the future. That doesn’t apply to Judith’s situation, with apparently the cra demanding withdrawal, which as you say, seems bizarre. But it is perhaps a useful way to check if you withdrew early