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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: Hello Peter and team,

I was wondering which index fund you guys would recommend for the most growth over the next 20 years. I am looking at either adding XSU or VGG. I know historically small caps outperform over the longer time frame. But I would assume given enough data that dividend growers would also outperform the market and possibley the small cap index? This position is being added for U.S exposure and I will be dollar cost averaging by contributing every qaurter. Your thoughts please.

Thanks
Read Answer Asked by Keith on July 08, 2015
Q: Good Morning 5i,

With all the publicity going around about a possible recession in Canada, what would be the investment strategy during a recession period?

Thanks

Paul
Read Answer Asked by Paul on July 08, 2015
Q: Hi Peter and the fabulous team,

I know you most likely disapprove of this plan so I thought I would ask you before I proceed. I am planning to refinance our house and invest 250K in stocks in a taxable account. My wife and I have a combined portfolio of 400K in non taxable accounts. I have been a member since early on and more less follow the stocks I have been learning about from your service.And we are about 20 years from retirement. The plan is to buy 10 of the best managed companies in Canada whether or not they pay dividend and hold them for 10+ years. Now here are my specific questions:
1- Why should I not do this when the interest rates are so low and money is so cheap?
2- What 10 stocks do you suggest regardless of this crazy idea?
3- This is in a taxable account and I wonder if I do get a tax-slip for the dividends from the bank or do I have to manually find out how much I have earned in dividends?

I know and I appreciate the fact that I am lucky to have your unbiased and caring advice. Thank you very much indeed.

Read Answer Asked by Saeed on July 08, 2015
Q: I would like to get more exposure to Europe for the long-term (5+ years). Do you think it is a good idea at this time given the Greek mess or should I wait a bit? Is there a good ETF or two that you could recommend/is that a good way to get exposure to Europe? The only one I know of is the SPDR EURO STOXX 50 ETF
(FEZ). Do you like that one?
Thank you!
Read Answer Asked by Arthur on July 08, 2015
Q: With the health of the canadian economy looking more questionable again and interest rates here looking like they will hold or decease would it make sense to tweak a portfolio that encompasses virtually all of your model, growth and income stocks and increase holdings of REITS and/ or bond etfs? With health care and tech about the only sectors showing some growth, it is hard to foresee any 6-9 month stock price appreciation n th other areas. As usual your perspective is appreciated. By tweak I mean add about 5% in total by taking say 1-2% from places like energy, gold, financials.
Read Answer Asked by Donald on July 08, 2015
Q: I currently have the following breakdown by percent for each savings plan: RRSP -28%; RESP - 13%; NRSP - 59%. Within each plan I hold the following asset classes:
RRSP: 5% Can. Eq.; 25% Intl Eq; 70% Fixed Income and cash
RESP: 20% Can Eq; 20% Intl Eq; 60% Fixed Income
NRSP: 92% Can Eq; 8% Intl Eq; 0% Fixed Income
Within my NRSP account ATD.B, HCG, GIL, SJ make up 65% of my portfolio.
Would the concentration of these 4 companies be a concern?
Note that I have had exceptional returns for the past 3 years and it is largely due to these 4 companies which I have all owned since 2000.
Read Answer Asked by Robert on July 08, 2015
Q: What are the reasons for those shares to rise today?
Read Answer Asked by Josh on July 08, 2015
Q: Hi there. Can I get your opinion on WEF. Western Forest.
Read Answer Asked by Robby on July 08, 2015
Q: I wanted to comment on a question asked by Fred about DRIP - I hope this is acceptable.
Wanted to say that DRIP has really served me well over the years. As a longterm holder, DRIP has helped me in two ways
1) some of the companies offer a small discount to market price (although this advantage is being cancelled, sadly)
2) more importantly, If you just leave the DRIP alone you will avoid the temptation to "time the market". Through DRIP, I was still buying great companies at bargain prices right through 200-2009. Not sure I would have had the guts to do that with cash (actually I know for a fact I did not!). Psychologically, for me anyway, DRIP keeps me on track and out of trouble with my long-term holds. It has worked out.
Hope this is useful to some. Good luck fellow investors!

Read Answer Asked by john on July 08, 2015
Q: I am slowly working my way into your growth and model portfolios. Next on my buy list are the above stocks. Which stocks would you see as a great buy today, and which would you wait for more downside? Thanks as always.
Read Answer Asked by Kim on July 07, 2015
Q: Is an investor better off the instruct the on-line broker to re-invest dividend into more shares or to allow the cash to build in the account to presumably be invested eventually?
Read Answer Asked by Fred on July 07, 2015
Q: I have an expenditure of approximately $10,000 USD due in December of this year. Should I be buying USD today or in the near future? I have been reading about a significant downtrend in the CAD.
Read Answer Asked by Janice on July 07, 2015
Q: Would you mind commenting on the implications of CRA's tax proceedings against Silver Wheaton?
Read Answer Asked by Michael on July 07, 2015
Q: Hello 5i Team: I am retired, and bought CVL for income and moderate growth potential. Am underwater and considering selling, but with the negative impact from low energy prices, a weak economy, and uncertainty of a new government in Alberta, the timing to sell is bad. I am willing to be patient if there are good reasons to expect better times, but am also prepared to take a loss and move on. In assessing future prospects, I'd appreciate your input on two questions.

One, do you feel CVL will be able to increase prices and improve margins on its product lines sourced from the US to recover the impact of a weaker Canadian dollar? Related to this, does the fact that CVL's agricultural customers sell their grains and other products in US dollars improve CVL's prospects of passing exchange through?
Two, apart from the diversification aspect, do you feel the addition of the Peterbilt line represents a good fit with the rest of CVL's business?

Thank you for your time in responding.

Ted
Read Answer Asked by Edward on July 07, 2015
Q: hi,
Could you please tell me how you feel about Teck Resources?
I'm down 47% and it represents 2.5% of my holdings (was 5%). It is the only "metals & coal" exposure I have.
I got out at $5 in 08/09n and painfully watched it get back to $60.
Do I just hold it and hope for a turnaround in the metals/coal sector?
Thanks

Read Answer Asked by Carlo on July 07, 2015
Q: Peter and His Wonder Team
Denison Mines just bought Fission Uranium. What is your assessment of this deal? How would you rate the balance sheet? Both stocks are down...does that mean Mr. Market disapproves? If one had patience is it a worthy contrarian play?
As always ...thanks for your prompt reply and great insights!
Respectfully...
Dr. Ernest Rivait
Read Answer Asked by Ernest on July 07, 2015
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