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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: Hi, I have a pile of different rate reset preferred shares that have done nothing but lose value, and I am considering ditching some of them and buying bank stocks. Of the choices between the big five Canadian banks which ones would you favour the most, I am looking for steady dividend payers that could go up in value. .........thanks Joseph.
Read Answer Asked by Joseph on November 29, 2018
Q: I bought BCE two or three years ago and watched its value peak about 3 times before settling back down now to levels pretty much where I bought it. In the meantime, I've had the benefit of a good dividend.

When I look at the 3 year chart, it is beginning to look encouraging again. so I was thinking that maybe some folks are buying into the telecoms because they like the stability offered in an economic downturn. I was about ready to sell and look for something with a bit more growth. Maybe I should hang on?

Would you recommend anything else with a similar dividend and stability in this economic environment?
Read Answer Asked by John on November 29, 2018
Q: Good morning 5i,
I believe you have said somewhere that you would prefer the American banks at the current moment. I am wondering if I am remembering correctly and if so, would you stand by that, and again if so, would you buy bac now instead of BNS, all things being equal.
thanks as always
Read Answer Asked by joseph on November 29, 2018
Q: Can I have your comments on BNS's earnings and announcements this morning? At first glance it doesn't seem likely to be well received. Would this be a time to switch into a better performing bank or add to the one that is underperforming? Could you suggest which US bank and which Canadian bank you would switch to? (no problem if this is a multi credit question).
Read Answer Asked by Tim on November 27, 2018
Q: Hello 5i team,
Since its inception, your balanced equity portfolio has generated something like 16% compound return pa; it has beaten the other "advisors" hands down and I enjoyed the ride. Congratulations!
Of the 6 major banks, BNS is the worst performer with a 5-year return of 7% compared to TD 47%, RY 35%, BMO 33%, NA 30% and CIBC 24%; and yet BNS is perennially in your BE portfolio. Why?
Thanks,
Antoine
Read Answer Asked by Antoine on November 26, 2018
Q: I think that 3 more increases in interest rates are expected by end of 2019. You commented recently that one of these banks stock dropped due to bad loans. Is the info on bad loans available in the QLY rpts or elsewhere? I understood that the banks generally do well in rising interest rates but will this be offset by fewer mortgages?
Thanks
Read Answer Asked by TOM on November 23, 2018
Q: I have a 10% position in TD and a 2.5% position in BNS. Would you reduce the TD position and use the proceeds to bring BNS up to 5% or just add to BNS using the 25% cash position in the account? In addition, I have 5% positions in V and BAC. Over exposed to financials period? I am a retired conservative investor who would ideally prefer to have good dividend with some growth. I have substantial gains in all financials mentioned.

Thank you for your great service.

Tom
Read Answer Asked by Tom on November 22, 2018
Q: Following up on a recent question regarding allocating the appropriate amount of monies to each stock, the amount depending on the size, safety, etc of that security. Would you agree with the current split (full, partial, small):

Full = AD (should be partial), AQN, BCE, BNS, FTS, RY, TRP.
Partial = CGX (could be full?), CSH, NFI, PGH (could be full?), TCL, WSP (could be full?).
Small = WCP.

Thanks...Steve
Read Answer Asked by Stephen on November 20, 2018
Q: Hi Peter, when do TD & BNS report and what are your expectations ?
Based upon the recent muted responses to good 1/4s and the very negative responses to misses is there any value in exiting here and freeing capital for the best overall market values once this 1/4 is over ? Both banks have held in well so far but its tough to picture that either one will have a short term move up substantially from here. Thanks, Paul
Read Answer Asked by Paul on November 20, 2018
Q: Good morning 5i team
My daughter asked for my recommendation on where to invest the $22K she and her husband have in our two grandchildrens' (10 & 7) RESP. They are currently in a 60/40 set of bank mutual funds, and they contribute $100K a month. They are prepared to accept moderate risk. I don't particularly like bank M-funds, and am thinking to suggest 40% in a 5-year GIC, and 60% in blue-chip dividend payers like BCE, BNS &/or ENB. I would appreciate your advice on my general approach and stock picks.
Granddad Edward
Read Answer Asked by Edward on November 19, 2018
Q: Hi,

SHOP has held it's own very well wondering if it would be a good idea to reduce SHOP to small position from full position. And buy SIS, BNS, NFI or PBH..for safety and growth when the markets decide to rebound...Your thoughts and sage advice welcome.
Also I am surprised at SIS sharp drop for a small miss...Should I be taking advantage of this?

Thanks. Shyam
Read Answer Asked by Shyam on November 16, 2018
Q: What would your advice be relative to exceeding a theoretical 5% limit for blue chip Canadian companies which have been beaten down by simply market sentiment in a lot of cases? I'm thinking of increasing my holdings of some of those I have listed. I realize I can buy CDZ but have a slight preference for individual companies.

Thanks
Read Answer Asked by Ronald on November 16, 2018
Q: Hi,

For a 2 year hold, which would you recommend in order of preference?

Thank you.

Larry
Read Answer Asked by Larry on November 15, 2018
Q: in my portfolio , I have bns 20%,bce20% ipl10% enb10% ad10% and 30% cash. after this pullback , should I invest more in these holdings or go into a different sector , I need income as retirement is coming . thx Jack.
Read Answer Asked by Jack on November 08, 2018
Q: Greetings 5i team, Valuation measures look fine for IAG. How does IAG compare to other Ins. Co's and financial svc Co's for earnings growth and i-rate environment moving higher ?
Read Answer Asked by Bernie on November 07, 2018
Q: Hi Peter/Ryan
I don't have any banks in my portfolio. In current scenario is it better to go with single ETF or buy individual listed banks. Value your opinion.

Thanks
Sanjay
Read Answer Asked by S on November 05, 2018
Q: I hold 200 shares of both BNS and TD. Tired of watching BNS slide and wonder if I shud be selling while I still have a profit and putting it into TD or would you consider another bank. I also have 985 shares of Olympia which id doing well. How do you feel about Boyd?
Read Answer Asked by Bonnie on November 05, 2018
Q: Having read todays word from you on DOL, would you be buying at this time. Also would one be adding to BNS. Presently have a partial position but wondering about the next few years and loan defaults. Regards
Read Answer Asked by Loretta on November 01, 2018
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