Investment Q&A

Q: I have seen in several answers you say you are encouraging tax loss selling in this market. Why? I don't see the reason to do that.

Let's use a hypothetical example. Last year I bought $10,000 of stock XYZ. It's fallen 50% so my paper loss is $5000. I sell the stock for a capital loss of $5000. I buy the stock back in 30 days (at the same price I sold it at), or I buy a proxy stock using the $5000 from the sale. Lucky me, one year from now stock XYZ has doubled and I now have a paper capital gain of $5000 (or the proxy stock I bought has doubled, and I have a $5000 gain). I sell the stock XYZ (or the proxy) and have a capital gain of $5000. The loss I generated from tax loss selling offsets the gain I made one year later. Net effect is 0, other than trading commissions.

If I had simply kept the stock XYZ, one year later I would be back at breakeven, no gain or loss.

If you believe in the stock as evidenced that you buy it back 30 days after selling it, or you buy a proxy and keep that, I don't see the point of tax loss selling for the sake of it. If you buy something completely different, that's a different story. But reading through the Q&A must people intend to buy the stock back in 30 days.

For this example keep in mind that the financial situation doesn't suddenly change; my tax bracket remains the same during this example.

Please explain why you are encouraging tax loss selling at this time. I don't see the point of doing this if you intend to buy back the same stock, and you remain within the same tax bracket. If you are relying on the stock being lower 30 days later when you buy it back that is market timing.

Paul

Q: You mentioned in a response that high valuation stocks, i.e. 10x sales are not likely to perform well in this market. Can you name Canadian stocks 5i follows that would fall in that category. Thanks.

Q: I hold 1/2 positions in KXS, STC, & OTEX, and a 1/4 position in SYZ.
I have a small gain in KXS and small losses in the other 3.
Would you choose to consolidate or replace with similar any of these holdings at this time and if so what moves would you make.
Thanks, Hugh

Q: Hi team,

The Globe recently published an article on high-interest savings account ETFs. It included this sentence: "A recent report by Canadian Imperial Bank of Commerce (CIBC) Capital Markets pegs the after-fee yield from these funds at between 1.8 and 1.9 per cent, which is far better than most other cash alternatives available to the typical investor."

Link: https://www.theglobeandmail.com/investing/personal-finance/article-this-cash-parking-spot-for-investors-has-never-looked-better/

Does this look right to you? I'm seeing more like 0.6% as the yield on these products.

Thanks.

Q: Based of a previous comment from you, I bought ZRR as a hedge against rising interest rates. I am down 10% since buying it. Perhaps I misunderstood what you said. Why is it dropping? Thanks.

Q: Can you please provide your top 10 canadian dividend stocks which can also provide some capital growth. Time frame is 5 years. Is now a good time to start buying or should I wait?
Thank you

Q: If you could temporarily transform yourself into a riverboat gambler for a day, what is the one stock, possibly having been hammered lately, that you would buy for a quick roll of the dice and accompanying gain or loss? Thanks.

Q: Would appreciate your opinion on the future prospects of this company.

Thanks
Paul

Q: With the general sell off in tech stocks, I'm currently down about 40% on each of these companies. However, I remain long term positive on them and would like your opinion as whether now is the time to add to my positions or whether you feel there may be further pain ahead for the sector and I'd be better off biding my time?

Thanks, Rick

Q: These large behemoths have been decimated in varying degrees. Would you please rank them and would you buy now for a long hold on what seems like a huge sale on quality leaders? Thanks.

Q: Hi, I’m trying to decide between these 4 operators to invest right now. Would you do a short compare of their size, debt and outlook ?

In 5i Market Data , what is the difference between « Total debt to equity » and « Leverage ratio ». Does Debt/CF show up somewhere? Which other ratio(s) would be the best indicator(s) in this specific sector ? Thanks

Q: Pls. compare, contrast and rank these two companies

thanks, Hugh

Q: Are there 2 or 3 Canadian & 2 or 3 US stocks you would be interested in buying in the current downturn?

Would you buy now or wait until???

Thank you.

Q: Hi, There seems to be a systematic decline in equity values, for past two days, in sectors like Utilities and Telcos, which are considered proxy to bonds, due to their higher yields. They held on better than the market, in general, during past few months. Do you think, the fear of rising rates has finally caught up with these sectors and these stocks might come under pressure, even more, in near term, as Fed and BOC continue with their plans to hike interest rates. What's your advice ? We have about 10% weighting in each of the two sectors. Thank You

Q: Please rank these stocks and would you be comfortable buying them now for their generous yields with at least a three year hold?
Any individual company comments are welcome. Thanks.

Q: Star Bulk Carriers (SBLK)( Dividend approx. 23%) and Golden Ocean Group( GOGL)(Dividend approx 13.8%) were mentioned in Seeking Alpha newsletter recently with regards to Attractive Dividend Stocks...

- 1. What are your thoughts on the 2 companies individually ?

- 2. What are your thoughts on the dividend offered ? EVEN if they cut their dividend in half ??

- 3. They Both have multiple Buy Ratings from what I see in my personal research...

- 4. Would you consider One or Both a Buy or Not ?

Thanks,
M

Q: Hi Team,

Why do you think SQ is continually being crushed?

Q: Following the much-anticipated rate increases that are pending here and in the US, would you buy a house or two for rental income and hopefully sell in the next 2-3 years for a quick profit?
Similarly, would you invest in a developer in Ontario who is building twelve homes in a small subdivision to sell and build to spec for buyers?
Thanks.

Q: No one escapes higher interest that will be with us for a while until inflation abades..As all companies refinance their debt loads , investors tend to shun highly leveraged firms..it almost killed baytex and a few others...what companies/sectors should we avoid?are tech s highly leverage d?and lastly, do we run to high cash flow companies? Many thanks

Q: Are the fundamentals intacts for these companies or are they more affected by the market correction due to: inflation, supply chain, interest rate, techno bust, pandemy, Ukraine,....etc?