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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 have asked a question today and here is another question that is related and comes with the same caveat that i do not know much about bonds/debt/fixed income; beyond the basics.
From what i saw on TV, the selloff in equities would force pensions to sell debt.That should depress the corporate debt prices? The central banks would buy mortgage backed securities. Who would purchase corporate debt, specially high yield? Would that also make the fixed income bonds issued by canadian banks more attractive(cheaper)? Would it also indicate that equity selloff is near bottom or reached bottom?
Would you prefer to buy bonds/debt or equity when there is a little stability? And could you please suggest some?
Thanks.
Read Answer Asked by Rajiv on March 24, 2020
Q: What do you estimate the remaining decline in the market will be? I have read that the decline could be between 10 to 50 percent. Also, what do you think the market will end up at the end of the year?
Clayton
Read Answer Asked by Clayton on March 24, 2020
Q: Could you please discuss BAM/how it is structured with the other subsidiaries (infra, renewables)? I'm a bit confused as to how it all works.
Would you say it is best to buy BAM, or the infrastructure company or the renewables one and why?
They have all fallen a lot... but are they "cheap"?
Read Answer Asked by Max on March 24, 2020
Q: Hi,

What type of account (cdn, us, rsp, tfsa) should I hold reits in to minimize taxes?

Thanks
Read Answer Asked by David on March 24, 2020
Q: Hi, I think, Monday's 10% stock price decline, could have been as a result of company's press release after close of markets on Friday March 20th. The NR for MTN Debenture issue NR had a paragraph on " COVID-19 Update ", which read as follows.
" Due to the speed with which the situation is developing and the uncertainty of its magnitude, outcome and duration, we are not able at this time to estimate the impact of the COVID-19 situation on our operations or financial results; however, the impact could be material. "
Read Answer Asked by rajeev on March 24, 2020
Q: On March 9th a special report was shared with 5i opinions on ten potential stocks to consider in the near future. That seems like eons ago considering all that has transpired. Would the advice on these stock picks remain the same today or would there be changes made with the selections? Thanks Dennis
Read Answer Asked by Dennis on March 24, 2020
Q: Assuming a youngish investor with a high risk tolerance and no cash flow/liquidity concerns, would it make sense to consider dipping into some "reserve" ammunition now and over the next few months in the form of LOC's/margin? Thinking being, from these levels, over the next 5 years imaging a 7% total return seems highly probable. With credit available below that rate, along with the ability to deduct the interest expenses, profitability seems likely. If this is a tactic you could even begin to condone, would you have any guidance such as a maximum amount of credit compared to invested capital to deploy? Also, assuming HELOC is not an option, any tips on finding the best rates and sources of credit?
Read Answer Asked by Andrew on March 24, 2020
Q: Can you please provide a few of your favourite US companies with low beta, high ROE and no debt that would be worth buying now for long term growth? Thanks
Read Answer Asked by Marco on March 24, 2020
Q: What US stocks is 5i staff currently buying and why?
Read Answer Asked by Marco on March 24, 2020
Q: Why is iBCE down almost 10% today if it’s supposed to be a safe haven bond proxy& do you buy a full position here?

I also want your opinion on the REIT’s and why they have been demolished in the last 10 days, which names would you be buying now or later?

Please deduct accordingly

Thank you!
Nick
Read Answer Asked by Nick on March 23, 2020
Q: I am a buy and hold investor with 5 to 10 years of time horizon.
Have the following 7 stocks in Canadian Utilities in the order of their weights in our portfolio. Utilities makeup roughly 8.5% of the total portfolio including cash positions and like their dividend. FTS, TRP,EMA, AQN, ENB, BEP-UN, BIP-UN. I like to reduce exposure to utilities and also like to reduce number of different shares. Two questions:
1. Is 8.5% a reasonable weight considering the current situation?
2. Which one of these I should sell to reduce utilities weight and to reduce the number of shares in utilities?
Read Answer Asked by Naren on March 23, 2020
Q: Hello,

I’ve been reading a lot on P/E ratios after your special report. From what I can gather once a company share is priced at 12 or lower P/E that typically this is a good buy for a long term hold. Is this typically accurate in your opinion?

Also, can you provide a site, which we would have access to, that provides the most accurate/up-to-date P/E ratios.

TIA
Read Answer Asked by Gerald on March 23, 2020
Q: Good morning,

I have the same amount of shares in VIU and VEE as a year ago, but the quarterly dividends both recently announced are both smaller than last year's. Why is this? Have many international companies maybe cut their dividends due to the virus and it's impacts? Could this be a Vanguard decision? Thanks
Read Answer Asked by Jeff on March 23, 2020
Q: Hello, 5i!!

Thank you for showing us how to behave like you guys, professional money managers.

Quick question and a simple yes or no will suffice. Are you looking at modifying some names from the growth portfolio?
Read Answer Asked by Rino on March 23, 2020
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