Investment Q&A

Q: I am trying to understand the impact of a 75% Capital Gains inclusion rate. Today with a 50% inclusion rate, assuming a 50% personal tax rate, you keep 75% of any taxable gain. With a 75% inclusion rate you would keep 62.5%, or 16.7% less. Is my math correct?

In a 75% inclusion rate, can 75% of the loss be used against gains? ie. a $100 gain would be offset by $100 loss meaning no tax would be due just as it is today?

If this is true, you may be best to lock in gains and save 16.7% if its a holding you plan on selling in the next year or two anyways. You can always buy it back immediately after locking in the gain. 16,7% seems significant

On the LOSS side, it seems more black and white. Today you can claim 50% of the loss and if there is a change to 75% inclusion rate, you can claim 75% of the loss next year. If there is no change to the inclusion rate a 50% loss claimed this year or next year is marginally better to claim now but if the inclusion rate changes from 50% to 75% it will be worth 50% more next year. It seems to me you are better off waiting until next year to claim any losses.

Is this a valid analysis or am I missing something.

Many Thanks
Scott

Q: What are your current thoughts on this company? Buy, sell, hold? Thank you.

Q: Would you consider the sell of in Nike to be a buying opportunity of was there something in the quarterly results that would make you stay away for now?

Q: I am down on both companies, probably due to shortages of parts.
Do you agree selling and buying your highest recommended tech growth stocks or any stocks you suggest where short term gains are likely?
Once problems receiving parts appears to be resolved, sell the stocks and buy LNR and MG again.
While it is market timing it appears to be a more predictable type of market timing.
Thanks
Klaus

Q: I have an ETF portfolio and a portfolio of CDN and U.S. stocks.

I am building my ETF portfolio and plan to take my gains from my individual stocks and add to my ETF portfolio during market downturns. I don't plan on making any sales from my ETF portfolio and I expect that portfolio to provide my funds for retirement.

The ETF portfolio is divided globally and I was wondering if which order you would add since I am building my portfolio. The ETFs I have selected on XIC (30%), XEF (15%), XEC (10%), IVV (15%), XJH (5%), XJR (5%), QQQ (5%), XLF (5%) and 10% fixed income. I have already established my 5% positions in XJH, XJR, QQQ and XLF over the summer.

My questions are:

1 - I know weighting is personal, but do you have any glaring concerns with my weightings?

2 - In which order would you add to XIC, XEF, XEC and IVV?

Thanks for your help,
Jason

Q: Hi 5i,

Portfolio analytics is recommending that I reduce my utility holdings 12%. I have held AQN (3.4% weight), FTS (4.3%), BEP (5.2%) and BIP (5%) for four years and do like the dividends and renewable energy aspect. Today's TD analyst comments also gave me pause about being overweight utilities: "As WTI oil and energy prices have recovered over the past year on rising interest rates, alternative energy and utilities in general have underperformed. We believe that a potential rise in interest rates on improving COVID-19 trends and impending
tapering, along with the renewed relative strength in the energy sector, will
further pressure the utilities sector." My questions for you:. 1. where and how would you trim from the above holdings? and 2. your thoughts on the analysis outlined above. Thanks for your guidance.

Q: What are your current thoughts on Baba? I have a full position and I am down more than 30%.. it is an RRSP though so I could exit and reenter or stay put..What are your thoughts?

Q: What percentage of each would you suggest for a good balance between Canadian and US stocks at this time? (Thanks so much for your help. I have benefitted immensely from your good advice for a few years now.)

Q: HI folks
ODFL has been a good old plough horse. With the understanding that you dont cover US stocks, can you see any red flags ahead?
Much appreciated for all you do and have a great weekend.

Q: I am considering increasing my WCP position from 2% to 3.5% by selling my position in WELL. The purpose of this trade is to achieve a greater capital gain over a shorter timeframe. Thank you.

Q: BIPC's stock price has been struggling as the company sorts through its IPL acquisition. When would you anticipate prices will begin to rise again? (Utilities currently held - in relatively equal amounts - are BIPC, AQN, BEP and NPI.) Thank you.

Q: Peter and team,

I use the US side of my portfolio mainly for growth opposed to CDN for income and some growth. Thinking of a switch from docu to affirm looks like good money to be made in this one. Can you give a comparison between the 2 and do you think affirm is a better investment now?

I've hit the highest ever by far in my portfolio this year akin to your father in law thanks in very large part to your recommendations.

From a very grateful many years standing customer!

Q: Where could a person find as near to "real time" as possible all of the holdings of mutual funds and ETF's - when looking at company documents on their websites they can be months behind current. I even tried SEDAR but could not find.

Q: Hello, I am cleaning up my portfolio to take advantage of YE losses... I am down about 5% on these stocks, except PINS ( I am down 20%) which one(s) would you keep and which one(s) you would sell now?
Thanks
Carlo

Q: X Div date on SIS is 9/28, If I buy tomorrow,Sep 27,do I get the Div. Txs for u usual great services & views

Q: I would appreciate your opinion and outlook on (AOSL:US). Would you consider this a buy at this time? Thank you

Q: What is your view on Fortis for a retirement portfolio? Is there another safe utility stock that would provide better growth? Would you ever hold both Fortis and Emera in the same portfolio or is that duplicating a similar type of holding.

Q: I have a nice gain on TFII of 40%. Given its higher valuation with recent price increases, would you trim or change this holding to another industrial? Its currently about 4% of our retirement portfolio.

Q: How much of Power Corp's profits come from China? How much of their business/money is there?

Q: How do you interpret Institution Holdings? Does this information help you analyze a company?

In the information about companies on the 5i website, most US companies and some others show Institution Holdings above 100%. This presumably is incorrect so what is happening? Where Institution Holdings are under 100% on the 5i website, is it likely that these numbers are reasonably accurate?