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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'm more a scavenger than a predator, as much interested in dividends as capital gains. Right now, however, I see opportunity in the growth sector as it collapses after years of ridiculous rises. My intention is to sell off bond funds to pick off the debris of this collapse.

First question: Now or wait?

Second question: What are your choices given this scenario, US or Canadian? Bear in mind, I'm not interested in the 5 or 10 yr wait. I'm looking at a bounce back after half the herd has jumped. I want reasonable growth prospects, a price to earnings ratio that isn't stupid and a margin that also isn't stupid. Say, for example, Apple.

You get it. I also don't expect perfection from you. No one ever got it from me.
Read Answer Asked by Larry on May 25, 2022
Q: I have an unregistered account which we use to generate long term dividend income. There are currently 9 holdings in the red, and 9 still in the black.
I am debating whether or not to sell some of the losers to capture capital losses. Then, in 30 days reasses - either repurchase same or redirect cash elsewhere.
In order of biggest to smallest loser, based on $:
LIF, SYZ, LNF, QSR, TCL.A, ZRE, AQN, BEPC, EIF

In general, I'm quite happy with the performance of this account in this declining market environment. Although the capital has declined a bit, the income stream has been quite stable.

Question 1: Please comment on the merit of this idea. Lose one or two dividend payments now for sure versus banking a loss for future tax benefit sometime. (retired, no earned income)

Question 2: Would you consider any of the 9 names above unsuitable for this account?

Question 3: Which of these 9 names are most likely to have further to fall?

Read Answer Asked by Jim on May 25, 2022
Q: Just when I thought the worst was over, it plunges down again. Why the drastic move?
I had the misfortune of buying heavily into this. Not sure whether to plug my nose and hang onto the 400 shares, sell half, or all. Advice please.
Read Answer Asked by Brenda on May 25, 2022
Q: You recently answered Sheldon's question and gave a positive view of this stock and its last quarter report. It keeps dropping significantly with the market. With its reasonable valuation and more generous dividend I'd like to buy a full position of Tricon for a 3 year hold. With rising rates and mortgage costs the rental market in the US should be strong (folks need a place to live). Is there a bear thesis you can put forth to suggest this current proposed investment has more downside than I now am seeing? Thank you
Read Answer Asked by Ken on May 25, 2022
Q: Questions on RESPS. My kids are 5 and 3 so I have their RESP money in VGRO, right now. Plan is to move it to VBAL when they get closer to needing the money. But then I assume I have to de-risk it even further later on. What would you suggest for this eg. GICS and how many years out? I know this is years out, but just want to have a plan.
Read Answer Asked by Carla on May 25, 2022
Q: The only commodity I see that has bust is lumber from 1250 to 650....If inflation lingers (high key component commodity prices) for 6 -12 months while the Fed raises interest rates to damper economic expansion , a V shape recovery seems less likely.The losers I've sold has been creamed by further 25-50% down side(eg. ANRG,PINS,TFII).....How does the DYIer protect/invest his capital within a portfolio given a U shaped recovery? Are there some better performers/sectors that lead the way out of this mess?
Read Answer Asked by adam on May 25, 2022
Q: What are the best alternatives for investing conservatively in large cap LNG , without investing directly in a U.S. situs asset ? There are very significant U.S. estate tax issues for high net worth Canadians with U.S. situs assets . A Canadian sponsored ETF with U.S. holdings or a large cap conservative Canadian company would avoid the estate tax issue .
Read Answer Asked by michael on May 25, 2022
Q: Hi,
I'm wondering about the new issue for convertible debentures from PBH - is this a good deal, given the interest rate, vs just buying the stock? I notice that the first interest payment won't be until Mar 2023, so a long time for the cash to sit idle. However the conversion price of 160.25 seems pretty good, given the stock closed today at 100.17. If the deal is a worthy one, then is it best to try to buy the new issue, or wait until after it closes to see how it settles? As always, your advice is much appreciated!
Dawn

Read Answer Asked by Dawn on May 25, 2022
Q: Hello
I am looking to buy a GIC. BMO investorline has the following 1-year term non-cashable GICs available at ~3.3% from Equitable Bank, RFA Bank, Haventree Bank, and Shinhan Bank Canada. I have never heard of these banks. Are they safe? Is there anything I should be concerned about? is there one over the other that you would go with?
thanks
Read Answer Asked by Mary on May 25, 2022
Q: Hi,
David recently asked about a USD Income Portfolio. If he’s a Canadian resident, would you include USD payers from Canadian domiciled companies like AQN, BAM.A, MG, QSR, NTR, AEM, and others so that the dividend tax credit adds torque to the income net net?
I’ve been contemplating that as a strategy so want to make sure I’m not overthinking it. Thanks.
Read Answer Asked by Carlo on May 25, 2022
Q: Hi All at 5i!!! DND has always been a confusing stock for me. I held it for a while and it got a vast amount of negative sentiment from the market , so I sold it. I have read a lot of conflicting opinions on it. So here I am seeking out your opinion. The straight goods....is it a good, stable stock to hold, well positioned for good future growth? Or are it’s prospects nebulous , dependent on (metaphorically speaking ) many stars aligning??? Looking forward to your reply, Cheers, Tamara
Read Answer Asked by Tamara on May 24, 2022
Q: Hi Peter, Ryan, and Team,

Two questions; please deduct credits accordingly.

Question 1 - I plan to sell one ETF (HXS) and two stocks (SJ & TCN) for a tax loss and then buy them back after 30 days. Please suggest proxies for each that I could buy as a replacement for the 30 days. These are held in a margin account.

Question 2 - I own WCP in my RRIF, and find that its volatility is harder for me to handle than I had thought. (Its beta is 3.26). Now that I'm in the black with it, I was thinking of two alternatives; selling WCP and adding to an existing profitable position in TOU (beta = 1.62), or starting a new position in XOM (beta = 1.07). XOM would increase my US exposure which needs to be increased, according to Portfolio Analytics. What's your take on this strategy?

Alternative ideas for each question would be welcome, and as always, thanks for your insight.
Read Answer Asked by Jerry on May 24, 2022
Q: Hello, What would be your top 3 picks for Consumer Cyclical and Consumer Staples?
Thanks, Lavern
Read Answer Asked by Lavern on May 24, 2022
Q: Two questions on NPK: firstly what is your view of today's press release regarding it's planned domicile move to Singapore? Secondly, I have substantial capital gains in this stock since I bought it several years ago and currently hold it in a non-registered account. What are the tax implications, other than taxable capital gains, if I sell it and rebuy a portion of it in my tax-sheltered accounts within 30 days? Geoff
Read Answer Asked by Geoffrey on May 24, 2022
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