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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: Hi

I'm trying to keep the US and international stocks and ETFs in my RRSP account and my Canadian stocks in my cash or unregistered account for tax reasons. Unfortunately, much of my RRSP account was built up with Canadian stocks. Further, I'm overweight Canadian stocks and am looking to increase my US and international exposure.
To do that, I would need to sell some of my existing Canadian stocks in my RRSP account to free up more cash. I could then re-purchase these same stocks in my unregistered where there are no limits to how much cash I can contribute.
Now, here's my question - and forgive me for the naďve question - if I sell my Cdn RRSP stocks with considerable gains and then re-buy them in my unregistered account at current levels, am I taking on more risk, or does my risk stay the same? In other words, am I really in the same position as before? Or have I assumed more risk because I'm now holding the stocks at a higher cost?

I hope this is clear.

Thanks
Robert
Read Answer Asked by Robert on April 12, 2021
Q: Good Afternoon, could I get a few of your favorite material stocks as of right now in each of the US, Canada, and Global if applicable.

thx, Mark
Read Answer Asked by Mark on April 12, 2021
Q: I am a very disgruntled customer after seeing my seeing my rrsp account (ETF STOCK NAME REMOVED) go from a gain to a loss due a notional payment/distribution (AKA phantom payment) causing my adjusted cost base to increase by $1.24. If my account wouldn't have shown a loss I wouldn't have picked up on this. After talking to your help line I am even more dissatisfied.
What is a notional payment?
It is a distribution declared by a fund or trust where no cash is paid to unit holders, but is considered taxable at the time it is declared. Notional payments are declared to avoid paying taxes on income earned within a fund or trust, but where the fund manager does not wish to deplete the resources of the fund or trust by paying distributions in cash. Notional distributions, sometimes called “phantom distributions” are taxable in the year declared, and will increase the adjusted cost base (ACB) of the security. You can usually identify a notional payment by looking for a TXPDDV payment, followed by a DRIP debit, for 0 shares.
If I understood what (ETF COMPANY NAME REMOVED) is doing with these so called distributions I would have never bought the etf as it makes such a small interest rate and then my adjusted cost base goes up by $1.24 by this phantom distribution causing a loss in(ETF STOCK NAME REMOVED). I am better off keeping cash in my account than holding (ETF STOCK NAME REMOVED).
This practice of passing on phantom distributions and causing losses to customers seems like a sneaky under handed way to pass on costs to keep your MER lower. I have lost trust in (COMPANY NAME REMOVED) ETF's.


Read Answer Asked by Brian on April 12, 2021
Q: I'm over weight Canadian financials but only hold two insurance companies - SLF and IFC.
Would they move in a similar fashion? Or do they focus on different insurance spheres? Would it be good keep both?
Thanks
Robert
Read Answer Asked by Robert on April 12, 2021
Q: In my observations of your answers to members questions about US stocks, I always note which US stocks the staff has invested in. I'm curious as to how those stocks would be categorized. Would the majority of those stocks be classified as being in a Growth, Equity or Income portfolio, as are the Canadian stocks. Is it safe to assume that several or a majority of the US stocks the staff has invested in would be candidates for inclusion in the i2i Fund?
Read Answer Asked by Edgar on April 12, 2021
Q: Hi,
Looking at Urbana's NAV ($6), it is reported by the company to be roughly twice the stock price ($3). I bought this stock years ago because the NAV was higher than the stock price, but this discrepancy, and my bewilderment, has only grown.
They like exchanges, and have real assets and privately held assets. Am I ok to increase my underweight position in this name?
Read Answer Asked by Darren on April 12, 2021
Q: looking at to buy a stock in auto industry.
your preference re linemar, magna, martinrea, or wd buying a sales of autos co., ie, auto canada be better. your opinion and any other view/suggestion wd be helpful and appreciated
thank u
John
Read Answer Asked by John on April 12, 2021
Q: Hi.
I bought GSY last year March - April when “the baby was being thrown out with the bath water”. My average cost was about $30. I sold at around $100. After I sold , I realized I did the most foolish thing. I didn’t need to sell , so why did I, was the question that kept bugging me. I sometimes can’t fathom why I do foolish things with my stocks. I told myself it’s not the end of the world and I can still buy the stock at around $127.( today’s price-April 9th). This time i Intend to hold for at least 5 years, or even longer. What are your thoughts on GSY over the next 3-5 years?
Thanks ,
Read Answer Asked by ilie on April 12, 2021
Q: Given 92% of the world's leading edge chips are manufactured in Taiwan, and China's accelerating efforts to retake the island, what companies would benefit if the US decides to build capacity in semiconductors?
Any Canadian candidates?
Read Answer Asked by michael on April 12, 2021
Q: How do you determine which Exchange to use? In your latest report, you recommended Magellan Aerospace Corporation, it's on the TSX and the NEO. Is one exchange better to use than the other. Also, Stock like Shopify is on the TSX and the NYSE. I use the TSX because it's Canadian, but the Canadian Exchanges don't show pre market numbers, I like referencing the US exchange. Am I correct to assume if the stock is moving up pre market in the NYSE it will do the same when the Canadian Market opens? Thanks,
Read Answer Asked by Juanita on April 10, 2021
Q: Hello. Looking at buying US cannabis ETF. But, I see this under MSOS Holdings:

BlackRock Liquidity Funds Treasury Trust Institutional TTTXX 43.13%

Seems like a large percentage is invested in US treasuries that would not be growing very fast (dead money?); what are your thoughts on this and the MSOS ETF in general.

Holdings of similar MJ ETF are names I more readily recognize (TLRY, CRON, WEED, APHA,...), so maybe that's the way to go?

Thank you.
Read Answer Asked by Paul on April 10, 2021
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