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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: I am helping a 19 year old relative set up a brand new TFSA. With $12,000 to invest, I would like your thoughts on the following possible approaches:

1) The market rally seems overdone to me in the short term, although maybe there are not many great alternatives, so investors are buying stocks anyway. But Sep/Oct are often volatile, so perhaps we should hold cash and invest on the pullback?
2) Since the time frame is decades, we could disregard the current market conditions and invest now.
3) Hedge our bets - invest half now, and keep half to take advantage of pullbacks.

When we do invest, we will likely invest half ($6K) in an ETF, and the other $6K in 3-4 stocks. What specific ETFs / stocks would you suggest?

Thanks for your sage advice!
Read Answer Asked by Ed on August 26, 2020
Q: Further to my question of August 24, John Heinzl of the Globe mentioned if you were exchanging BIPC for BIP.UN, you would lose money because BIPC is worth more. In your answer you have mentioned it was somewhere in the neighbourhood of $8.00. The reason is by making the exchange which is in my TFSA with an adviser which has limited yearly trades and then after that, trades become over $50 per trade. That way, the exchange would cost me nothing and I would have one lump sum of BIP.UN which would cost me 1 trade and I would take the cash out of my TFSA and I would buy BIPC in my online non-registered account with another institution for $9.99. Would I be losing the $8.00 (or somewhere in that area) per share by doing this, OR if, for example, I had $9,000.00 worth of BIPC shares which became BIP.UN in the transaction, would I get $9,000.00 worth of BIP.UN shares? I am just concerned I am clear on this. Thanks Dennis
Read Answer Asked by Dennis on August 26, 2020
Q: Good morning 5i. I am considering "parking" about 10% of my portfolio in "cash equivalents". Are CVD and CPD your preferences in this case as I see they pay out roughly 5% which seems a reasonable risk/reward scenario? Are there other options or recommendations that you might consider? Thank you in advance.
Read Answer Asked by Peter on August 25, 2020
Q: Hi 5i team,
I am not a value guy as you know from my questions, but I do mix in a sprinkling here and there. There seems to be some speculation by U.S. analysts that GM could or should spin off its electric vehicle division into a public company and that would attract a much higher market multiple. In the past, you were not very positive on GM and its prospects. Given the spectacular run of TSLA, has your opinion changed at all on GM, given its electric vehicle assets, and what would you consider to be the likelihood of a spinoff?
Thanks again for the insight.
Dave
Read Answer Asked by Dave on August 25, 2020
Q: Thx as always for your amazing service.
You mentioned 4 of the above names in a vaccine / recovery scenario. I already own DOO and GC, and I am looking to add two. Can you please rank them 1) in terms of risk 2) recovery potential from current levels

Thx Brian

Read Answer Asked by Brian on August 25, 2020
Q: May I please have your opinion on this company? Thanks.
Read Answer Asked by Marco on August 25, 2020
Q: Hi Peter and 5i team,

I currently have BIPC and BEPC shares in my TFSA account, and I expect to hold them for the long term. Is it worth paying a transfer fee to move those shares to my CAD non-registered account in order to be able to recover any US taxes paid on dividends.

Many thanks for your opinion on this matter.
Read Answer Asked by Michel L on August 25, 2020
Q: I hold ET in a registered account, and as it is a MLP I've had non-resident taxes withheld from dividends. They have indicated that they will likely convert to a c-corporation, and I'm wondering how that would affect the withholding tax on distributions, and if that would automatically mean a lower distribution.
Read Answer Asked by Rick on August 25, 2020
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