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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 currently own these two REITs and they have, as expected, performed very poorly in 2022 - both down more than 30% YTD. Against the backdrop of continuing rising interest rate would it be advisable to take the losses and exit the REIT sector for now?

At present prime is at 4.7% (and continues to rise, latest rumour is another 0.75% or even 1% increase), while GRT.UN yields 4.2% and DIR.UN yields about 6% these two REITs are hardly enticing investments. What is your advice on this situation? Thanks.
Read Answer Asked by Victor on September 07, 2022
Q: I own an Ishares all in one ETF to round things out. I just found out they hedge the currency on the non Canadian holdings. I tried to find out the cost to hedge but was unsuccessful. After doing more research I found the costs to hedge can be 1-2% a year. When doing a back test between IVV and XSP the hedged EFT lagged by 1-3% a year over 20 years. From 2002-2012 the lag averaged 2.1% a year but in the last 10 years the average lag was 1.1% a year. Do you know any all in one Canadian ETF's that don't hedge the currency?

Thank you.
Read Answer Asked by Derek on September 07, 2022
Q: Hi, I appreciate the great work you have been doing to share knowledge.
I am considering the smith manoeuvre and would like to invest about $100K for a start in an etf vs Canadian dividend stocks. I would appreciate if you can share your thoughts on any ETF or ETFs that would be ideal considering the issues with ROC and ACB at tax filing time. I am also considering the importance of geographic diversification, hence the reason that I am not too convinced on going the route of Canadian dividend stocks. I am on the 50% marginal tax bracket and would also like to invest tax efficiently perhaps more towards growth than high dividends.
I look forward to your thoughts.
Thanks
Read Answer Asked by Sandak on September 07, 2022
Q: Hi
I am considering the smith manoeuvre and would prefer to invest in an etf rather than individual stocks because of the benefits of diversification. I would appreciate if you can share your thoughts on a few ets that would qualify and would also be less of a hassle in reconciling the ROC and ACB during tax time. I would appreciate your insight in smith manoeuvre using and etf rather that dividend paying stocks. I am in the 50% marginal tax rate. Thanks
Read Answer Asked by Sandak on September 07, 2022
Q: Hi.

My portfolio analytics says I'm low on Consumer Defensive. Can you give me 1-2 Canadian stock suggestions and maybe 1-2 ETFs in the US and Canada.

Thanks,
Robert
Read Answer Asked by Robert on September 07, 2022
Q: With all the risks out there in the investing world these days it's hard for me to decide on an investing strategy that I can trust enough that I will hold equities even as they react and go down when each new risk becomes noteworthy. I've decided that the best strategy for me is to develop a list of:
1. high quality
2. inexpensive stocks
3. that pay dividends that are sustainable through difficult times.
Based on this strategy what Canadian companies would you invest in now that fit the criteria? I would appreciate 8 of your top picks.
Read Answer Asked by Les on September 06, 2022
Q: I received the following in one of my TD alerts:

"Park Lawn ranks poorly in our screen as consensus estimates were significantly lowered after its Q2/F22 earnings miss last month. The 2022 consensus earnings estimate was reduced 19.4% and the 2023 estimate was lowered 11.6% (Exhibit 4). As a result, Park Lawn has seen its ranking in our QGM tumble to 223, and we are removing it from our small-cap portfolio."

Should I be selling PLC?

Carl
Read Answer Asked by Carl on September 06, 2022
Q: Quick question - Is the Sector Mix or the target percentage for each of the 11 sectors more or less based on the S&P 500?.....Tom
Read Answer Asked by Tom on September 06, 2022
Q: Retired, dividend-income investor, who normally buys-and-holds for years, with some trimming-adding to meet my asset allocation targets.

I've held CSH for years...starting to build a position in 2017 in my wife's TFSA (oops) and ditto in her RRSP (double oops). Anyway I have finally lost patience with it and wanted to check in with you...one last sounding board. I've also gone through all of the CSH questions.

Q#1 = your thoughts on CSH...any hope? RBC seems to like it (Outperform with a target of $13.50), but it just doesn't seem to gain any traction...just the opposite.

Q#2 = from an asset allocation perspective, I have CSH at 50% REIT and 50% health. I currently own ZRE (my proxy for the sector) and LIFE (ditto). What are your thoughts on taking the CSH proceeds and adding to both of these? My resultant exposure would be ZRE @ 4.0% and LIFE at 6.5%...even though I understand you can't personalize answers. I see you have ZRE at a 5% weighting in the Income Portfolio but nothing for health.

Thanks for your help...much appreciated...Steve
Read Answer Asked by Stephen on September 06, 2022
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