Investment Q&A

Q: Inspired by the news of Carnival putting out a 12.5% bond coupon, I wonder if this is an area to look into. Carnival may be a risky corporate bond, but I wonder if there are stronger companies caught in debt when the fall came that are offering good returns.

In short, is there an ETF which is focussed on high-grade corporate bonds and is this a good strategy?

I know you are not favourable toward the bond market, so is low-volatility equity funds (like ZLB) a good alternative?

Q: my question is on sector allocation. What would be the asset % in order of preference for a person who is 70 but does not need the funds for another 3 years...please also include the top 3 stocks or ETF allocated to each sector ( can be Cad Or US thanks for your help on this

Q: I am a Canadian citizen/resident. I use my non-registered investment accounts to hold dividend-paying Canadian companies as well as U.S. companies that pay no/small dividends. I use RSPs for U.S. companies that pay larger dividends. I use TFSAs to hold securities such as Canadian REITs and companies with unusual dividends such as BEP.UN and BIP.UN. My understanding is that BIPC is essentially “equivalent” to BIP.UN, but that BIPC will pay fully eligible dividends for which T5s will be issued (not sure if the BIPC distribution will be paid in CA$ or US$). Here are my questions: (a) given the above considerations, would it make sense for me to sell BIP.UN/BIPC within my TFSA, using the cash to acquire more of Canadian REITS and/or similar types of securities (with unusual dividends), and to reacquire the same value (of BIP.UN/BIPC shares sold) through purchase of shares of BIPC in a non-registered account? And (b) do you know whether it is known yet in which currency the future BIPC distributions will be paid?

Ted

Q: Hello,
What are your thoughts on a comapny like GDI at a time like this? On an up market day like today the stock had no movement (which may be a good thing as it may not be correlated to the market). Do you think they could have liquidity issues? I am starting to buy this slowly. DO let me know your thoughts. Thanks.

Regards,

Shyam

Q: Good afternoon, As a long-time Chartwell investor, of course I'm not pleased with its recent price decline. In our combined portfolio, I've allocated it in the healthcare sector. If I believe that the NWH.UN tenant base is more secure, would you be OK with a switch from Chartwell to Northwest Healthcare Properties, Do you concur with this thesis?

Thanks, and stay healthy.

Q: Just checking to see if Great Canadian Gaming's business is completely limited to casinos with physical presence needed or is there an online segment as well. If the online component is limited or does not exist at all, would there be an alternative company or two in the same field that you would recommend that relies mostly on revenue from online gaming. Thanks.

Q: Hi Peter
What are the pros and cons of buying CLF vs actual laddered Govt bonds.
Seems CLF is easy to sell--but is there more risk in a down market?

Q: Peter
I know you have said that the stock market may start going up before this crisis is over and confuse and confound investors. Well I am one of those investors. If as the Royal Bank said this morning millions of dollars have been pulled out of mutual funds in the last several weeks, I can’t imagine that it is those people getting back in the market or is it? Where is all the money coming from to buy stocks? What is the stock market anyway? Institutions and individuals buying and selling to each other to try and make a buck? I read once that the world could do without oil before they could do without the stock market. Do you believe that?
Post if you want. I am sure I am not the only investor out there who can’t make sense of the stock market.

Q: What are the Canadian equivalents thanks

Q: I have only 5% international exposure right now. can you give me 5 ETF's that have good potential upside coming out of this downturn that could help me balance out my portfolio by region. Asset class not a factor.
Thanks Dave

Q: I’m confused. I understand that there is risk to prefer chairs in that they rank behind balance but I had of common stock. Therefore the strength of the company affects the strength of the preferred chair. I also understand that with low interest rates the rate reset or perpetual preferreds have had their values affected. What I don’t understand is the minimum rate resets. There are strong companies that have minimum rate resets that will reset at 5+ percent guaranteed in the next few years. Why are these not trading at higher prices.Many of them are trading at 40% of their issue price. Please help me address my confusion.

Q: Before the downturn in stock market, the stock positions my portfolios, balanced and income, were matched with target weights, for the most part, like okay. Now I am thinking about starting a new portfolio comprised of the 10 Canadian stocks listed in the 5i SPECIAL OPPORTUNITIES REPORT, dated March 9,2020, and this portfolio would represent 5% of my total equity positions. I understand that it would be concentrated rather than fully diversified but I would be comfortable with this. Rather than overweighting the positions that I currently have, I thought it best to open a separate portfolio to track these special opportunities.
My intention would be buy individual positions over time, slowly to achieve the target weight, and that the positions held for the long term, aka 5 years. And I would be using cash that is available.
I would appreciate your thoughts and comments, like anything that I should be aware of or blind sided to..........Thanks.....Tom 

Q: Which would you prefer today, VTI or VUN?

Q: recently both copper and natural gas have broken out how would you play these sectors or would you advise to stay away ithese two compamies are picking up momentumm whats your opinion

Q: Do you have any concerns about Keyera's dividend for the next 6 months or so.
Thank you

Q: Hi 5i,
Last quarter I was considering watching my short-leash holdings like VB and COV for one or two more quarters ... considering the situation today would you carry on down the same path patiently or reconsider as that 1-2 quarters looks like it will be much longer?

Thanks
Mike

Q: Hi,

Do you agree that many REITS and utility companies are historically way overvalued considering their lack of growth?
If I was to invest in REITS and utility companies for the next few years, could u pick 2 REITS you like for US and 2 for CDN exposure?
Could you also pick two utility companies you like for US and 2 for CDN exposure?

Q: Hi.
PINS issued Q1 guidance after hours today and the stock price is up over 14%.
Would you please share your opinion on this stock?
Also, what other stock names listed in the US are similar in “business “ like PINS?

Thanks

Q: Hi guys,

I hold CP in my portfolio at 3% (still in the green), thinking about switching to L or Costco for a little more security in these difficult times, your thoughts?
Keep safe,
Jim

Q: Dear 5i Team,

Several ETFs like HHL and EIT use a covered call strategy for portions of their investments. When markets have an overall downward trend, or are otherwise directionless but volatile, is this an effective strategy? I know that it works in an upward trending market but wasn't sure about the other scenarios.

Thanks in advance!

Derek