Investment Q&A

Q: BANK OF MONTREAL 1.81% NON CUM 5YR RT RST CL B PFD SER 25
BMO.PR.Q
How do rate reset like THIS horrible thing work? How does value react to interest rate changes? Specifically, is the above security, which is down substantially, worth keeping now that it has already lost much value? OR are the funds better deployed elsewhere if one is conservative and looking for Canadian dollar income, preferably dividend?

Q: Hello: I currently own BMO, CM and BNS. I’m thinking of switching BMO for TD as BMO did not increase its dividend as TD did. Also I believe TD has more US exposure which should show better growth. Your opinion please.

Q: I own these companies in a DRIP plan and would like to buy a few more. Would you rate the best Canadian DRIPS stocks please
Thanks for all your hard work
Sue

Q: Hello Peter, Ryan & Co.
The Canadian banks are core holdings in my portfolio, which I intend to hold for a very long time. I am a bit perplexed, however, at the recent selloff. I recognize that the current pullback/correction in the market is very broad, but it seems to have been triggered by a fear of rising interest rates - don't banks & insurance companies actually benefit from rising rates? The banks' shares seem to have fallen as much as the interest-sensitive stocks this week (like REITs & utilities), which makes no sense to me. Can you explain?

Q: i am thinking buying some Canadian bank stock, it is a good timing for long turn investment ? and which bank your team will choose?
i am 48 years now.

thanks!!
Jacky

Q: i own two prefs...gwo.pr.T bmo.pr B...great life has dropped in price and bmo is steady..the yield on gwo is attractive..
has the say 5 yr bond spread or the pref yield spread between lifeco's vs banks widened? also your thoughts on gwo thanks as always..

Q: I am 85-years old, locking for a safe income investment. Like to have your advise on ENC.Pr.c Min Rate reset, FFH.PR.k 5-year rate reset, BMO.Pr.s 5-yr R.Rest Preferreds. How safe are they in a rising Int. rate rise? I would also appreciate you expert advise of your chaises. Many thanks, J.A.P. Burlington

Q: Hi 5i,

In this trend of BoC rate hikes which Canadian Banks are better positioned ? I would like to add 2 to my portfolio. Could you please comment on this ?

Thanks !

Q: I want to buy BMO in my RRSP account on its current dip.
is there any disadvantage of buying it on NYSE as CAD$ is fairly strong as well.

Q: Hi Peter, Would you advise on to buying more of BNS/TD ( recent strength) or pick up BMO instead to take advantage of its price as it lagged recently ( Yield @4%). I am more inclined towards BMO as they perform similarly over the longer term. Please advise.
Thanks.

Q: Can I please have your analysis of the following stocks that are in a TSFA: BMO, DRT, IRG, MDA, PHO, SJ AND SYZ.
Long term investments. Thank you.

Q: Good day Peter and Team, I too am impressed with your ability to limit the number of stocks in your portfolios. As I'm overweight in the financial sector and in the Canadian banking sector we hold BNS, TD, and BMO. I'm thinking of selling BMO at a slight gain, to deploy some extra funds for the Industrial sector where we're underweight. Aside from TNC, would you recommend adding to any of these Industrial stocks: EIF, KBL, SIS, or STN? I'd rather not buy a new Industrial stock unless there are compelling reasons to do so. As always, your advice and recommendations are of great value.

Q: I'm looking to free up some cash and among other things own the 5 big banks. They comprise 20.5% of my total portfolio, as follows: BMO 6%, RY 4.4%, BNS 3.7%, CM 3.3% and TD 3.1%. Should I focus on reducing my BMO exposure?

Q: The article you shared about the Canadian banks was an interesting read. I'm curious if you would buy any of the banks today, and if so which one and why? Its interesting to hear your thought process around whether you would go for the higher dividend payer that is more undervalued but limited short term growth, or the more US exposed fair valued, or international fair valued, or other reasons.

Q: Given the increasing speculation that the Bank of Canada will be hiking interest rates come July 12th, which bank or banks in Canada will benefit the best from it? Looking to put some cash into Canadian financials as I am just starting to develop my first portfolio. Thanks for the great service you provide!

Q: Hi 5i
I am heavily in financials 32% am working to diversify in my portfolio. I have listed a number of my invested companies. Investments are in Can. Cash, TFSA & RRSP heaviest in (RRSP)
I would like to re-invest in divided stocks and 2 ETFs. can you advise which would be best replaced and list a few that are in your top considerations.
Thanks,
Scott


Thanks, Scott

Q: My holdings in the banks are pretty well equal. Circumstances have arisen which require me to decide whether I should shift this balance against the most overvalued to the most undervalued, if there is a worthwile difference among them for a long term holder. Would you be inclined to rank them and indicate whether your order represents significant differences?

Q: Hi Peter and Gang,

Just wondering what your views are on Canadian banking industry going forward and if the 5 big Canadian banks are a buy, hold or sell.

Thanks,
Harry

Q: My son is currently 39 years old and is trying to develop a solid diversified portfolio. All of his holdings are in his RRSP except for some money in a Tangerine International growth fund which is in his TFSA. He has some new funds to add to his holdings. Could you please recommend some companies from your model portfolios that would add more diversification to his portfolio keeping in mind his relatively long investment horizon. As always, thanks for your advice.

Q: Please accept my apologies for what could be a request for a long-winded answer. You welcome to debit my 5i bankroll for 5 question credits in effort to better compensate you for your time.
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If possible, please provide your opinion on something I wish to term "Peak Credit" in Canada. We are all aware that Canadians are spending themselves into a life-long love affair with mortgages, lines of credit and credit cards. With Canadian interest rates at 35 year lows, the availability of loans and credit climb while region-specific real estate prices inflate to valuations that seem to defy logic. Young families in their 30's commonly have mortgage debt over $500k and barely earn the income to cover payments at today's rates.

In general, what is the mix of insured/un-insured mortgage debt on the books of Canadian banks? If wages are not keeping pace with inflation and the cost of living, how are Canadians ever going to own their own home? Are we doomed to a life of the English, where the concept of home ownership is more of a dream than it is a reality?

Do you feel banks in Canada are prepared for higher rates in the next 3yrs?

Is Canada showing the early signs of a credit bubble?

Do bank common stock investors have anything for fear?

Am I a coyote howling at the credit moon?


Thank you for your guidance. This topic should be on the minds of many Canadians.