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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 would like to add my two cents to your comments to Cal about TD semi-annual pay step up extendible notes, having bought into one of these many years ago. First, these are not too far removed from a GIC, as they are next to impossible to cash/sell until maturity. Second, the moment rates move against TD (ie down in this case), they will call the note as quickly as permitted. Your 3-year note might become a 1-year note if it is to TD's advantage. Lastly, these are not covered by CDIC and are subject to bail-in, unlike a GIC. Doubtful that would happen, but be aware. . . In my view, if you are willing to lock-in for 3 years, go with a GIC, which actually has better 3-year rates and you know exactly where you stand.
Read Answer Asked by grant on July 15, 2022
Q: I have been holding a legacy position in preferred shares, both corporate and CPD ETF, as the bulwark of our fixed income allocation. I have never been a fan of. pref shares and wonder if this is a good time to sell and replace with a laddered GIC strategy. Is there an ETF that does this well, in your opinion. I have also been reading about GIC's offered by SLF and others. Would they be better and if so, how does one purchase them? Thank you for the calm you project to your subscribers.

al
Read Answer Asked by alex on July 15, 2022
Q: Today Jeremy Siegel was asked about the main sources of market returns for investors i.e. multiple expansion, dividends, earnings growth, stock buy backs.

The person asking the question said that over the last 10 years 40% has come from multiple expansion, 15% dividends, most of the balance from earnings growth.

100 years ago 50% came from dividends.

The Q then was “ where will the returns come from in the near future?”

His answer focused on the massive role played by STOCK BUY BACKS.

Finally my Q:

Do you agree with that looking ahead this will be a major source of stock returns ( vs multiple expansion and dividends)?

Is there a filter to ID companies with the highest buybacks( similar to historical data on dividends)?

Thanks.
Read Answer Asked by Donald on July 14, 2022
Q: Hi Peter,

I am not a big fan of ARKK or Cathie Wood. On a year-to-date basis, ARKK has fallen more than 50%. But I am fascinated with Cathie’s all or nothing investment approach. ARKK invests in disruptive technology firms. Her high risk and high reward investment style reminds me of Pete ‘Maverick’ Mitchell in the movies Top Gun and Top Gun Maverick. You either reach Mach 10 or crash and burn!

My question for your team relates to ARKK’s top ten holdings: ZM, TSLA, ROKU, CRSP, EXAS, TDOC, PATH, NTLA, SQ, and BEAM. Which of these stocks have fallen sufficiently so that a high-risk investor can safely purchase them for a five-to-ten-year hold? Also, what is your ranking of these ten high tech disruptive companies? Living life in the “danger zone” has its attractions.

Thanks,

George
Read Answer Asked by George on July 14, 2022
Q: I unfortunately bought these companies recently.I am down a huge percentage in a few short weeks.Are there any names here that I should keep?I thought I was buying high quality basket.Does energy collapse in a recession?
Read Answer Asked by Kim on July 14, 2022
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