Investment Q&A

Q: BAM vs. RY—both are solid picks for income and long-term capital gains, and I currently hold both. I already have substantial exposure to bank stocks and the HCAL ETF. Since BAM falls under your strong-rated names, I’m considering increasing my position in BAM and trimming RY. Do you think that’s a smart move?

Q: Could you please rate the Canadian stocks below for total return over the next 5 years.

Perhaps these ratings would work (or other ratings you think are better) ...
F for fair
A for average
G for good
VG for very good
E for excellent

The stocks are:

BAM
BEP.UN
BIP.UN
EMA
FTS
NA
POW
RY
SLF
TD

Thanks.

Q: I have been asked by a 23 year old to provide suggestions for when she initiates her FHSA.

I immediately thought of the banks , which I believe is the premium Canadian sector for long term growth, growing dividends , and safety. I would also recommend a more Canadian diversified security (UMAX ) for her next purchase. Of the above banking securities ( all owned between my cash, tax free, and registered accounts ), which would you start with ? Would you be comfortable with UMAX as second pick ( admittedly hasn’t done much but provides diversification into large cap companies and a good distribution yield). I am only interested in Canadian securities at this point. Should I be comfortable with this approach? Any thoughts would be appreciated.
Thanks. Derek .
Any

Q: I want to raise some cash and these 4 stocks have grown to be the largest % of my CAD cash account. I want to sell a portion of one. Which do you think has the least growth moving forward?

Thanks,
Andrea

Q: Big banks TD and RY trim and add to GSY and PRL. Is it time to begin ---- wait ----or not at all?

Q: I have some money to deploy in my partner's TFSA and RRSP, and they currently have the following holdings. As we move towards retirement, the objective is to hold more income and defensive stocks. What three might you add today, and what three would sell from this list? Thank you for your insights.

Q: If you were an income investor and wanted to invest in each of the 5 big banks, given current valuations and yield, what percentage of the money you have marked for investing in banks would you allocate to each?

Q: Hi, I own RY shares in both Cdn and USD, and see that the USD tends to lag the Cdn by a little. Is that due to conversion, or just the RY stock doesn't have as much momentum in the US? Not a big thing, just curious - and I figured you'd have the answer - as you always do! Thanks!
D

Q: I have noticed that a number of the large banks have had a big rise recently. I am wondering about the reason for this. Specifically, is this a flight to safety going on in the background? Or is it the interest rate reduction or something else?
Thanks

Q: Does the interest rate may affect the Canada banks profit? Should we still keep them during this time. Many thanks.

Q: In your opinion, are Cdn. bank stocks overvalued and is it time to trim. Along with two Cdn insurance companies they currently represent approximately 26% of our portfolio

Q: Your thoughts please on this TFSA used by a retired banker that is very simple but has vastly outpermormed the TSX. I realize only 3 sectors are covered but looks to be all quality companies?

Thx

Q: I am overweight in financials. Can you order the noted stocks in terms top to bottom ranking?

Q: Hello 5i research
Do you think JPM and RY are correlated with the market even that one is in the USA and the other is in Canada?
Thank w

Q: What would your top ~5 recommendations be to build an RESP with an 10-15 year horizon.
Had to sell all positions to live the account and have a good pile of free cash currently to redeploy. Not dissatisfied with prior holdings but creates a moment to consider best options currently

Q: Would you throw some light on “ provision for credit losses “ ( PCL ) that the banks use in their financial statements. It seems to have a significant impact on earnings. How is it determined ? Analysts take it as a poor contributor to earnings. If a bank lowers its PCL how does this actually increase its profitability ? Is there a formula to determine its PCL and how trustworthy is this ? Seems to me that a bank could alter the PCL number to better their numbers. Thanks. Derek.

Q: How is Royal Bank of Canada result? What is your target price and buy in price? Many thanks.

Q: This relates to response made on Royal Bank on Aug. 8th, person had 25% on there holding, advise was to not keep a single bank stock over 8% in a portfolio. I own it as well, makes up just over 13% if my portfolio, ive owned it long enough my dividend is almost 7.5%, I know you don't give personal advise, I see no reason to sell any, but might I be better selling some and looking at another bank maybe TD, I do own BNS in another account, it's just over 8% of.that portfolio.

Q: RBC makes up 25% of my equity holdings. I have a profit of 42%. Based on my purchase price I am receiving a 5% yield. Several months ago I reduced RY holdings by 20% due to gains. If it were you, at what % would you be comfortable?

Thanks for all your help,

Mike

Q: Hi,

Which of the two do you lean towards in the current environment? Many thanks for your service to the investment community over the years.

GM