Investment Q&A

Q: Hello 5i. I've been trying to increase our diversification outside Canada via ETFs and low(er)-MER mutual funds in our RRSP accounts. Have made a start with the following ETFs: ZSP, ZDY, XSU, CUD and CYH. Also have the BNS NASDAQ Index Fund (BNS397) as well as the Mawer Global and Global Small Cap funds (MAW 120 and MAW150). These holdings currently make up about 14% of our equity portfolio (which is in turn about 60% of our total investments ... the balance is fixed income). We are both in our 60s and retired.

I would like to continue this trend but am unsure which additional ETFs and/or funds make sense for good diversification e.g., more global and/or US, or more specific like Europe?

Could I impose on you to offer a few suggestions, preferably available through Canadian fund providers? Thanks, and hope you have enough information here to suggest some ideas.

Q: "Start shedding the deflationary plays such as utilities, consumer staples and telecommunications because that story has become as old and tired as the bond rally." So writes David Rosenberg in a basically anti-bond pro stock piece in the March 27 Financial Post where he assesses the impact on bonds and income stocks of interest rates rising even slightly. Do you think the 5%+ (growing) yield on BEP would offer a sufficient cushion over most other utilities in the face of rising rates or should profits be trimmed as Mr. R. suggests? Thanks, J.

Q: Thinking of purchasing some shares- your opinion please..
Any preference as to what acct?
Margin
Rsp
Tfsa

Q: Hi team! I've been following this stock for some time and recently jumped into this one at $0.20 after news of their decent upcoming fourth quarter revenue announcement (to be released in April/May). Overall they seem to present well and I am impressed with their business model. Seems they are getting more headlines as of late especially with MTV.

Although this is a speculative play, what is your opinion of this company and it's future?

Q: I am planning to buy a large oil stock listed in the us that pays a nice dividend.
Which one would be your top pick?
You think the timing is right or should I wait

Q: Not sure if it is just me, but I've noticed a lot of people having or expecting babies lately. Many investor typically talk about investing in companies that cater to the baby boomer (ie. aging) generation, but can you list a few opportunities that could benefit from an influx of newborns? I was thinking DHX could be one, but not sure if your team had any other ideas. Thanks!

Q: what your view of this company
tks

Q: My question is not about Vivendi per se but rather about activist investors who buy large numbers of stocks in underperforming companies (such as Vivendi) and then pressure these companies to break up into smaller businesses purportedly to boost shareholder value. Does this tactic always have the effect of improving returns for shareholders? Or are there times when it's better to wait until the dust settles? When I think of CP's huge gains after Bill Ackman's involvement, buying this company is hugely tempting.
Robert

Q: I'm interested In buying gold coins as a hedge against major issues. What denominations would be recommended? Where would I buy coins? Do you know of a good article I could read? Thanks.

Q: Hello Team
The $USD has been basically parabolic since July. I would like to hear your opinion regarding (1) The sustainability of such a move. Can the USD go it alone? (2) The effect on the U.S trade deficit. Was it not a strong dollar that contributed to large trade deficits in the past which , in turn, contributed to financial issues in the U.S. (3) The effect on U.S. companies selling abroad. Is it not a drag on their earnings. Is there any evidence of such a drag in the U.S. earnings yet. What do you guys think going forward?

Thank You for your valued opinion

Clarence

Q: A guest on BNN recently said he was shorting MCR and thinks it goes to zero. This has got me concerned as I'm down 70% and had planned to wait out the oil recovery. My question is do you also think it goes to zero or do you think it will survive at this point? Could it be an aquisition target? I seem to have a problem knowing when to sell. Any advice or articles on when to sell a stock would be appreciated. Thank you for your service.

Q: Your view as to whether this is a good buy, especially in comparison to the other companies in similar business at current prices of your favourites?
thanks for all you do
john

Q: Hi guys, what would your current opinion be for Teck resources based the reliability of the dividend for the forseable future and the potential upside related to the possibility of coal tariffs being lifted by the Chinese.

Thanks

Q: This company may have the potential as a turnaround stock (to borrower from Peter Lynch). Any thoughts?

Q: What do you make of their latest financial report? Would you buy this stock now? Thank you.

Q: Hello Peter & Co,
Are there any Canadian equivalents to Goldman Sach's BDC that lends to companies banks used to lend to?
Thanks,
Antoine

Q: Hi There - I'm up 46% on CMH in the past couple of months. Has it got ahead of itself at a PE of over 100? Should I take the profits?

Thx very much.

Q: A member asked about transferring a stock held at a loss to his/her TFSA. As you point out, one could sell the stock and wait 30 days before re-acquiring it (that is, inside the TFSA.) Aternatively, one could purchase it inside the TFSA, then wait 30 days before selling the losing position. Of course, this ties up more funds - but under the right circumstances (including sector allocations) might be preferable to giving-up exposure altogether. After all, if the stock continues to decline, then the claimable loss is greater. Perhaps the more pertinent question is whether one believes in the stock strongly enough to hold on to it, in spite of the possibility of unclaimable losses (that is, on the position held inside the TFSA.)

Q: I am in the process of figuring out exactly the amount of each sector holding that I have and wondered how should I record preferred shares, should these recorded a financial sector?

Thanks

Q: in your summary report you list Enbridge as belonging to the Energy sector but you often refer Enbridge as a good Utilities stock so should Enbridge really be under the Utilities sector?