Investment Q&A

Q: Hello Peter and the 5I team

I have been having a debate with a friend as to how interest rate hikes affect stocks (especially REIT's, pipelines and utilities shares) in the North American stock markets (FED and the BOC). His take is that it only increases the cost of borrowing. My take is that it 1.increases the cost of borrowing, this would put pressure on all businesses not just pipe, REIT's and utilities. It would actually put pressure on all asset classes. 2. Make bonds a more attractive asset class to own compared to stocks. The risk/reward balancing act would slightly tilt in the favour of the bond over say REIT's, utility or pipeline stocks which are generally known for their safe dividend yields. So people would flee the equity market and go toward the bond market causing the stock prices to fall. Would you say that I am more right then my friend??? Is there more to it then my rather simple explanation???

I was curious about BEI.UN, what is the pay out ratio? What is the P/B ratio and would you consider this a ok place to put money?

Thanks

Q: I am looking at purchasing more BIN for what I see as diversification in a long term (10 years or more) portfolio. With the recent purchase by a large US company it appears even more attractive to me. However you action in removing it from a model portfolio has caused me to pause in my decision. I would appreciate it if you would provide your rationale for removing BIN. Thank you.

Q: New member here.

As an individual seeking to replicate the allocation of one of your model portfolios in the longer term (over a year or two, as I shift out of current investments), what is the appropriate way to evaluate if your current portfolio elements continue to be a buy vs a hold?

My concern is buying in to a position that you are about to drop because it has reached its investment limit, either too high, too low, or just flat. CSU is an example that comes to mind: this security increased 329% since you included it in the portfolio, but I would be concerned whether this is near its limit for growth.

My initial thought is to simply match your newly initiated positions as they come and ignore the previous complete portfolio.

For the future, what is the appropriate method to rebalance your positions?

Q: Which do you prefer, ENB or ENF? Thanks Kindly!

Q: AIG has dropped from about $64 to$ 52 since Nov 2015. What do you think the stock will do in the future?

Q: I would like to increase my oil and gas exposure. I currently own Peyto and up a bit on it. Could you recommend one or two others to add that should do well assuming price of oil goes up.

Q: Hello 5i team,
For the person who wanted to know annual TSX total returns; data below includes 2.8 to 3.0% dividend yield
2005 +21.9%
2006 +14.5%
2007 +7.2%
2008 -35.8%
2009 +36.0%
2010 +14.4%
2011 -8.4%
2012 +6.6%
2013 +12.4%
2014 +10.2%
2015 -8.3%
Regards,
Antoine

Q: Looking to fill a new TFSA for a grandson & thought these 2 might fit the bill. Good dividends & reasonable growth prospects. Your advise - please. Thank you.

Q: I am making an initial RRSP purchase and would like to start with a small number of ETFs. Could you recommend a starter portfolio of three to five ETFs (20-year timeframe)?

Q: Wow what a Quick answer on XSR.Sorry it should be on WEF.Reported $265.6m revenue more than $256m expected,0.2 diluted Eps less than 0.4 expected,& $29.6m Ebidta.Your comment & effect on price.Always appreciate your normal great comments & services

Q: I presently own a very small percentage and currently under water. I was thinking of avering down, do u think this company will survive. Thank you

Q: In an earlier response to Jacques you provided the 2015 performance for the S&P/TSX Total Return Index together with a link to where it can be found on the TMX site. I have been searching long and hard for historical performance data (going back further than 2 years) for the S&P/TSX Total Return Index to no avail. The TMX data only goes back 2 years, I would like to have at least 10 years of history to benchmark against my personal portfolio performance. I realize that this is a question better suited for the forums, and I did post the question in the “brokerages and research tools” forum a few weeks ago with no replies. I even noticed that another member posted the exact same question in one of the other forums also with no replies. Can you either provide the year to year performance going back 10 years or direct us to where it can be found? Thanks.

Q: What are your current thoughts on HWO? Is it a good buy in the current environment? How safe/sustainable is the dividend? Thanks.

Q: Your analysis, please. Down almost 80% from its highs, but Full-year gross revenue up 18% to $6.0 billion; fee revenue up 17% to $5.2 billion; Adjusted Earnings Per Share of $10.01 up 26% reported at the beginning of this month. What am I missing, why is this down so much more than the rest of the market?

Q: What are your thoughts on this ETF for diversification in a tax free savings acct that has no foreign exposure for a conservative investor or a suggestion you might feel to be better THKS marcel

Q: Do you have a preference for either riocan or boardwalk at this time. Or would you like another name in the reit space. Hold is for +5yrs. How safe are the dividends. Thanks
Chris

Q: If you believe the news reports indicating that the big oil countries appear to be coming close to an agreed production cap, this could mean the Canadian dollar has hit bottom and is due to rebound to some extent (probably a little, not a lot). With that in mind any US equities held would be exposed to currency risk. I have made some decent returns on US equities in the past year or so with a good portion of such gains attributable to the Canadian dollar decline. Would you consider selling US equities now if you thought the Canadian dollar could appreciate in value say 10% over the next year or so?

Q: Hi Peter,
So frustrated with this stock. I have held it for years. You seem
to like it very much. reports more and more positive things happening. And after a big downturn and good earnings and a good couple days in the market. Down we are! Watching volume the last couple days. Huge. Are we being held down so some one can buy in cheap?
Thanks as always.

Q: You have probably answered this several times b4 but I couldn't find anything related so sorry for a likely repeat. I'd like some information on the MER that is quoted for a mutual fund or index fund. Some quote a MER of say 2.13% and others (like Vanguard) at 0.10%. Are these really the same thing and does this mean if I put $10,000.00 in each of these I am charged $213 in the first and $10 in the second (Vanguard)? Also is that charge very year or just a one time charge when I put money in assuming both are no load? Thanks. Much appreciated.

Q: What is happening with QRM lately