Investment Q&A

Q: HI,

I am retired with a RRIF & LIF in addition to
a cash investment account, IDS a a small pension.

I have been putting about 3 years of withdrwals
from my registered accounts in ,ostly short term bond etf's that I have ear marked for this purpose. I think I am about breaking even here
but most ofthe cash has been available.

My Question is:

Would it be viable to move the money set aside
for withdrawals into CASH denominated in US Dollars until the interest rates begin to rise.
These withdrwals(for 3 years) would be about 20% of each account

HOw would I best accomplish this ? is there an ETF out there that just holds US$ ?

It seems to me that the US Dollar will remain strong relative the Canadian dollar for the forseeable future. If the Us Dollar begins to falter the Canadian Dollar will fall with it and gold will start to rise at which point I could consider moving gradually into gold instead of USD ?

Thanks in advance

Leonard

Q: Hi I5Resarch Team,

I have a full position on MX and am currently down by about 25% (it's down by about 8% today so far). Should I bite the bullet and take the loss or should I just sit tight and wait for a turn around? What are the Teams's assessments on this company going forward?

Regards,
Harry

Q: Hi Peter and Team,
I sold my holdings in GM and converted the proceeds from this sale to CDN$s to lock in my gains on exchange rate (I was up 33% on the exchange and 6% on the stock). I would like to put the money (in CDN fund) from the GM sale in automotive related business in TSX. Just wondering if there are companies the Team can recommend considering that I already own Magna and Exco?
Much appreciated.
Harry

Q: Do you think their dividend will remain intact? Looking back at 2008/09 BMO says they lost over $4 per share and the dividend was cut substantially. Was what happened then likely to occur again,(I didn't follow ACQ back then so maybe the company has changed dramatically?...) given BNN just ran an article about household debt levels and the fact that oil is becoming insanely low? I know management said the dividend would remain the same, but you can't really trust that, because if they were to say anything else people would have started to panic and sell immediately, and they still needed to raise capital after the last earnings report. Thanks

Q: I have held this fund for about 10 years and I am down 7%. The quarterly dividends are reinvested in the fund and are reflected in the book value. It has been a good fund over the years, but currently has hit a rough patch. The fund is the income portion of my RSP and TFSA.

Should I sell or stay the course? I am reading and watching on BNN that the high yield market is in for a rough ride.

Thank you and season's greetings to everyone at 5i.

Q: A couple banks have recently issued rate-reset preferreds at very favorable terms, 5%+ and a floor at reset. Why would tap the equity market when the cost of debt is so much more favorable to raise capital?

Q: Could you please comment on WETF on Nasdaq at current price? You had comment on this one last year and in 2013. Have you changed your view?

Thanks

Q: Hello 5i,
One of the comments has prompted me to write and say "Thank You!!!" for a very valuable service that I find indispensable. While on occasion I shake my head at some of the questions, I remind myself that there is never a "stupid" question and that the answer is the important part. Not everyone has the same level of knowledge, experience or risk tolerance and this will be reflected in the questions.
So, to keep this short, Thank You!!! You are much appreciated!!
Merry Christmas and Happy New Year to all at 5i and the 5i community.
Cheers,
Mike

Q: Peter; I think I saw some babies being thrown out with the bathwater this morning - what do you think? Rod

Q: Seems Mr. Market is underwhelmed or not paying attention to the SYZ announcement as shares are up only the amount of the special dividend on 100 traded as of the time I write this. Have they made a habit of specials in the past and do you agree with the CEO's statement that, "...our relative company value remains a fraction of our peers."? Which peers does he refer to? Thanks, J.

Q: The company can attribute a great deal of its success to its remarkable culture. Are we still in the early innings of this transformative behemoth.

Q: This sector is incredibly exciting. What's your take on medical devices please. Thanks.

Q: Another stock that you recomended and I am down substantially.
why is this stock down so much?
And can you tell me again why I shouls hold?

Q: Wondering whether a Kinder Morgan type dividend cut could happen to Cdn pipeline cos in a sustained low price environment. With negative sentiment in the sector and depressed share prices companies will be hard pressed to raise capital to fund significant cap ex programs. If they cannot fund growth organically they may need to cut dividends to free up capital. I realize Kinder's situation was exacerbated by an untimely large acquisition but the need to fund large cap ex programs remains in a depressed share price environment. Your thoughts please. Thanks..

Q: Please give us an update on BUI's management stewardship and your general thoughts...Thank You

Q: I am a bit surprised that there isn't more talk about the potential effect of lifting the U.S. oil export ban on WTI pricing, and of course, by extension, on Canadian oil. My thinking is that it narrows the gap between Brent and WTI favourably for WTI. I have read the recent EIA report which suggests the effect will likely be fairly neutral but I wonder what your thoughts are and if you know of any good links on the subject. Thank-you very much.

Q: If you were to buy a couple or rate-reset preferreds, what might they be and why.
Is it a good time to get into them, considering "negative interest rates" have come up as a possible option to deal with economic issues?

As always, thanks.

Q: In the past you have suggested a 30% weighting outside of Canada. If using vxc or xaw for said international esposure and the remainder 'canadian' stocks from the balanced and growth portfolios(atd,csu,cxr,bns,cxi,phm,mg,mda,enb,it,bos,sj,wsp) is 30% still appropriate today? Assuming this is a young investor that would work toward 20 names from the 5i portfolios as funds become available. Thanks

Q: hello 5i:
I currently hold small amounts of TRP, ENB AND BIP. I also hold a full position in BEP.UN, and a smaller position in FTS. Dividend Growth is important, as are present dividends. I am considering taking a full position in BIP.UN. To do this, I'd have to sell the TRP and ENB holdings. Can you compare the stocks, and does this seem like a sound move for a portfolio that has too many holdings?

Q: Please provide your general insights about this company, the insider ownership levels and the quality of the stewardship, thank you.