Investment Q&A

Q: I am overweight in BNS but not in banks and financials, would you suggest another financial stock with safety and decent/stable yield to replace some BNS .

Q: My portfolio is significantly over-weight tech and currently paying the price. Semi's (AMD, NVDA, SMH) had propped me up but not anymore. That's the bad news, good news is i have a sizable portion of cash to deploy. Over the next few months, where would you suggest deploying new cash? Which stocks, etf's, or sectors have been unjustly hit the hardest?
The rest of my portfolio is anchored by XIU, BAM, BIP, ENB, CNQ, etc.

Q: I have no experience in purchasing stocks during a war & high inflation.

Could you suggest 5 Canadian company's you would buy in todays world situations?

Or would you recommend doing nothing right now?

Thank you.

Q: What sectors and top stock picks for each sector would you advise to address inflation and a recession. If possible, could you provide entry points.
thanks

Q: Hi
I owned BIP.PR.D for a couple of years and liked the steady dividends. I am looking at a) another Brookfield preferred that is similar or
b) an ETF that has mostly rate reset bons with a decent dividend or
c) another preferred share from a stable company, like fortis, bce, telus, enb, trp, etc
I would like something that provides 5%, has at least 2 years shelf life. Is it possible to provide maybe 5 choices, ranked that meet the above criterion?
As always great, Len

Q: Hi, Banks have been decimated over past 3-4 days, perhaps, over the risk seen with an inverting yield curve. A guest on BNN explained that banks make money by borrowing through short term and lending for long term. Short and Long term interest rates spread, contracting to its lowest point, over past couple of weeks, it has caused some anxiety among investors, while, generally market has favored financials due to expectations of rising rates, resulting in higher profits. Do you subscribe to this thesis of inverting yield curve and like that Portfolio Manager, on BNN, is it time to consider reducing exposure to financials ? I would appreciate your comments on this theory and if any action is warranted. Thanks so much

Q: When Canadian housing prices were much lower than today several years ago there was much talk about American investors being short our banks due to being overextended on mortgages, something I have not heard recently. How much is the short position on them now vs. then and which banks have the most exposure to defaults on mortgages presently?

Q: Hello 5i Team

I need to trim back my holdings of TD Bank and potentially purchase shares in Bank of Montreal.

If I sell TD Bank on Thursday April 07, please confirm that I will receive the dividend as April 07 is the ex-dividend date.

As the Federal Budget is scheduled for release after close of the markets on April 07, would it be reasonable to assume if an increase in the Capital Gains exclusion rate was implemented it would be effective April 08 or at a later date?

I tried to research the previous increases in the Capital Gains exclusion rates, however it last occurred in 1987 and most government press releases are not digitized from that era.

Thanks

Q: In your view, what impact will the Liberal/NDP cash grab on the Canadian Banks have on their stock prices. Each of them are expanding outside Canada....does this help mitigate any new tax? Is there one Bank that is better able to handle things and more favored now as a result? Would you just begin exiting the Banks? Thank you for your insight.

Q: Hi 5i Team - Could you provide two or three top picks in each of the following sectors: Real Estate, Consumer Staples, Financial, Industrial. Any market cap is fine but with a focus on mid cap. Also with a focus on Canadian Equities.
Thanks.

Q: Hi,
In Dec 2021, BMO announced to acquire Bank of West from BNP Paribas for US$16.3-bil. This is a big amount. Normally companies finance these kind of huge acquisition by issuing debt and equity. Whenever new equity is being issued, stock price of issuing company falls during that time. Do you think BMO will issue new equity? Is there any place where someone can get information these kind of news?
Thanks
Piyush

Q: Hi group - I am a medium risk investor - Can you please give me your top picks + % weighting in the top sectors - Financial, Industrials, Materials , Energy, Health care , real estate, Tech Thanks

Q: Recently Veritas’ D.Souza cut most of the big canadian banks to sell. Could I have forward P/E for each of them? I doubt it, but do you agree with M. D’Souza that the banks are a bit overpriced looking at 2023?
Thanks

Q: I'm interested to increase my sector weight to financials - and now have BMO,
BAM, MA, and FFH.
Please comment on this mix and whether to add to any of these or add other stocks.

Q: Which would you suggest for a financial growth play in a 3-5 year hold? BMO or SLF?? Thanks

Q: My allocation to financial services - with a RIF (US and CA)and TFSA (US and CA) is under 10 % , with BMO, BAM, MA and FFH.
Please rate these for growth and safety - and whether this is a good mix.

Q: Banks had another big run in January. Are prices already reflecting all the good news for the banks, namely higher interest rates and a good economy?
Secondly if someone had new cash looking for a home in big cap blue chip dividend paying companies which of the financial, pipelines, telecom and real estate sectors give the best upside from here?
Thank-you.

Q: I am considering add more bank stocks and here's what I got based on their P/E:

TD:12.36x
RY:11.99x
BMO:11.69x
BNS:11.50x
CM:10.57x
NA: 10.79x

I have 150K cash available. Would you agree to add National Bank, CIBC and Bank of Novia Scotia equally since these 3 have the cheapest valuation?

Thanks,

Q: BMO deal to buy Bank of the West, it's a large deal don't you think that BMO will need to go to the secondary market and issue shares, and shouldn't they do this now?

Q: Hi 5i
Regarding your answer to my previous question regarding BMO deal to buy Bank of the West, it was not clear if you would be buyers of BMO at the current price or better to wait. Share price continues its slide this morning.

If better to wait, then at what price would you be interested.

Thx
Jim