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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: With the possible exception of BMO, the Big Five banks seem to be hitting a plateau. At the same time, there's talk of moderating interest rates. But shouldn't lower rates be a stimulus for banks' business - mortages, etc.? I thought it was the insurance companies that benefited from higher rates. Or is the apparent tapering-off of banks' growth just a reversion-to-the-mean phenomenon?
Read Answer Asked by John on March 21, 2019
Q: Can you comment on a recent short thesis on the Canadian banks? The fund (Crescat Capital) claims that 82 percent of Canadian companies have negative cash flow, but when I read it, its free cash flow they refer to, which is obviously not the same thing. Nevertheless, negative FCF would still be concerning. What's your take?
Thanks, Alex
Read Answer Asked by Alex on March 21, 2019
Q: I currently have an in-trust account for my daughter with $5400 distributed between AQN and FSZ. I have another $6000 to put in. I would like to put half in VFV and half into VDU. These funds I am hoping will sit there until she retires (she is currently 13).

I am concerned about taxes with the two ETF’s in this unregistered account. Do you think this is a good approach with the funds or would you advise otherwise?
Thank you for your great site and forum!
Read Answer Asked by Sarah on March 21, 2019
Q: Hello folks; Looking to tuck away some silver. Which of these would be better suited and what will the fact that SVR is hedged have if silver and SVR happen to go up? Also, PSLV is on the TSX exchange but is listed in USD. Is there a problem with government hold-backs upon cashing out?
Read Answer Asked by Charles on March 21, 2019
Q: I have the above securities, as well as RBC Cdn Equity Inc, Sentry Cdn Inc, Sentry Global REIT, and fixed income via Fisgard Capital, Annuities, a company pension, CPP and soon-to-be OAS.

I really focus on asset allocation and am a little light on Consumer stocks, holding CGX, PBH and TCL (although some consider TCL to be in the Industrial sector). I am normally a buy-and-hold investor who trims-adds around core positions.

Question 1 = I am looking to add 1 more consumer stock and am looking for a dividend ideally > 3%. Based on my stock-ETF-MF mix, are there a few stocks you could suggest that would fit in my above set of securities.

Q2 = if I was to consider ideas from the Income Portfolio, is there an issue with having multiple food stocks....like PBH and A&W and NWC. Why have more than one food stock?

Q# = because A&W is a ".UN" company, how are their dividends treated for tax purposes? Are they eligible for the dividend tax credit?

Deduct as many credits as you deem appropriate....got loads and will never use them all up.

Thanks as always...Steve
Read Answer Asked by Stephen on March 21, 2019
Q: Good morning,
My wife and I wish to put $$$ into our minor (twins 7 yrs old) grandchildren's in- trust accounts to help them get an early start in building an investment portfolio. Moreover, this would allow them to start contributing to their TFSA when they reach 18 years of age and when I am perhaps long gone.
I understand that if I put $$$ in my minor grandchildren's in-trust accounts that ALL INCOME would be taxed in my hands until they reach 18 years of age but that any CAPITAL GAINS would be taxed in the hands of the grandchildren regardless of their age.
Assuming that my understanding is indeed correct, I am looking for a few suitable investment vehicles and more specifically a few good quality ETFs that DO NOT generate any form of INCOME or DISTRIBUTIONS other than CAPITAL GAINS.
I would very much appreciate your thoughts on implementing this strategy along with a few of your best ideas as to which ETFS you would recommend for my purpose.
I thank you in advance and look forward to hearing your response along with your ETF recommendations.
Read Answer Asked by Francesco on March 21, 2019
Q: My question relates to investments for a growth oriented TFSA. If you were choosing 10 growth stocks for a TFSA what would be your top candidates today.
Thanks
Mike
Read Answer Asked by michael on March 21, 2019
Q: What would be your top 5 stocks to purchase today in the Energy sector? CDN or US. (You guys are the best)
Read Answer Asked by Stan on March 21, 2019
Q: Hi,
I need a bit of help in structuring my Bond component for my RRSP.
I had so far running with PH&N High Yield 5%, ZST 5%, PH&N Total Return Bond 10%, PIMCO Monthly Income Fund 5% and MFT 2.5%, for a total of 27.5%. Given my age (59) and the fact that soon we may enter in a Bear market, I have to increase my Bond allocation. According to some, this should mirror my age, probably close to 60%. My question is: What combination of Funds/ETFs and weight should I use? Is probably not a good idea to invest more than 15% in a fund and probably limit my High Yield exposure to 5%. Thank you.
Read Answer Asked by Nicolae on March 21, 2019
Q: Rakuten Inc. - RKUNY A Japanese Internet services. Do you think that it will be a future Shopify or Alibaba ?
Read Answer Asked by Nhung on March 21, 2019
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