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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 read your recent ETF and Mutual Fund Update with great interest. The forecast growth numbers for the ETF industry are truly impressive. On the surface, ETFs would appear to be a magic bullet for individual investors who wish diversification at low cost.

Over my lifetime, I have seen a number of financial trends/theses, which start with very strong growth. However, after a period of time, these trends invariably collapse and end badly for the "buy and hold" investors. Do you see any possibility of this occurring for ETF investors? What risks do you see for (conservative, retired) investors who have a portfolio of ETFs as opposed to a basket of diversified, dividend aristocrats? Have you seen any analyses which look at the long-term impact of this trend (i.e. what will happen in the markets if most people buy ETFs and not individual stocks? What risks does this trend pose to individual investors?). Thank-you for your insightful advice.
Read Answer Asked by Dale on March 18, 2019
Q: Lots of press this morning on calls for a much weaker CAD going forward - some forecasting into the low 60's. In the case of prolonged weakness would it be safe to assume that Canadian companies that generate most of their income from foreign operations are "hedged" (companies like MG and BIP.UN for example). In other words - as CAD weakens their CAD translated income and cashflow increases which should lead to higher share prices on the TSX.
Thanks
Read Answer Asked by Gary on March 18, 2019
Q: For the question on what to buy a child that will get them interested in stocks.

I was introduced to stocks at an early age (mom worked in the bond market). Some of the best stocks i was introduced were:

Macdonald's, Coke, Nike, Apple.

If you can link to something they see everyday it has more meaning (at least it did from my perspective).

Cheers
Read Answer Asked by kelly on March 18, 2019
Q: A member asked who was trading PHO at the end of trading on Friday. In your reply, you observed that TD and Anonymous were, respectively, a major buyer and seller. This same sort of topic pops up on stock discussion boards. My question is: what do traders/investors who seek this sort of information get out of it? What possible significance can there be to which brokers are on one or the other side of a trade?
Read Answer Asked by John on March 18, 2019
Q: I'm looking to invest a small amount of money for an 8 year old, primarily to introduce him to investing. I'd like to invest in companies that he can see the name of around the city, or in his hand to make it 'real' to him. Are there 2-3 such companies that you could recommend for a keen youngster? An ETF that includes recognizable companies to a child is an option, if you can recommend one also.
Read Answer Asked by Lois on March 18, 2019
Q: What are your thoughts on the discretionary sector at this point of the cycle, specifically XCD?
I considering a sell on a smallish XCD position to top up XAW.
Thank you.
Mike
Read Answer Asked by Michael on March 18, 2019
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