Investment Q&A

Q: Trimming the herd to pay off the mortgage. Any compelling reason not to sell the above names. I have a few others on the maybe trim list if you make a compelling case to keep any of the above. Balanced growth follower.

I am heavy financial ( thus ditching rbc and mfc), wjx is one of my dogs ( offsets some of my gain on financials) and rus- tpk -wpm have gone sideways so no gain-loss on them. Gets me out pretty cap gain neutral and cleans out a bit of dead weight not in your balanced portfolio

Q: Why was Manulife down over 3% Wednesday prior to their earnings release? The Q1 numbers looked good to me which came out after the close. What’s your take? Thanks

Q: I am heavy financials at about 20%, I should probably trim the herd....All but CHW will generate a large capital gain as I have held most for a long time. I hate to sell CHW as it pays a crazy div right now at almost 8%.

I am leaning towards holding all but taking the dividends and putting into other sectors (stock from the your balance portfolio following your balanced equity portfolio) and not adding any new financials to my holding.

Can you provide a compelling argument for selling 1 or 2 of the above for the sole purpose pf rebalancing out of financial. Or is my slow but steady approach with lower tax implications a reasonable compromise knowing I will be heavy financial for several years.

Q: I've been coasting along with Manulife for a little over a year and am thinking about bailing. Other than higher interest rates (which haven't helped so far), do you see any catalyst in the next year that should move the stock higher? What other financial would you replace it with if you were to sell (the only Canadian bank I currently own is TD for 2.6% of portfolio).

Thanks
Peter

Q: I am doing a bit of spring clean up on my portfolio. My question relates to insurance companies. I have a 3/4 position in Sun Life and 1/2 positions in Manulife and Power Financial. Manulife was purchased for its Asian exposure and Power Financial for its European exposure and its dividend. What insurer would you eliminate and is there a reason to keep more than one Canadian insurer?

Q: Trying to access whether or not to continue holding my position in Manulife. There are so many conflicting views. Rising interest rates should support the stock. What is your view on the problems within the co as well as any affect the trade war will have its business in Asia. I’m an income invested plus preservation of capital.

Q: What's going on with this company this time. It is always disappointing to me. I have held this for many years as well as sun life and it seems to do nothing. Rates are going up and it still wants to go down. Can you give me a reasonable explanation? I want to sell it just out of spite

Q: I have owned MFC for well over 10yrs and have a small profit to show. Should I just take my 2 bits and move on?

Q: If Canada adopts nationwide single-payer pharmacare, as the Liberal government says it will study before the next election, what would be the effect on insurers like Manulife and Sun Life?

Q: i have roughly more than 100 thousand investment room in rrsp resp and TFSA. i am thinking buy some reit or stock?

pls help me>

appreciate.

Q: Hi 5i,
I have a pretty balanced RRSP with these stocks and FUND. I am only up with the FUND and BEP.UN. I have about $10, 000 to add to the mix. Should I buy in to any of the losing stocks, add a new one or wait and see . Possibly ranking the "losers" might help me.
Many thanks. I enjoy the Q & A daily.
Great coverage.
Cheers
Paul

Q: Over the past few years, we regularly heard that insurance companies' share prices could not perform well in a "low-rate" environment, or more particularly in an environment where the difference between long-term and short-term government bond rates is small. However, over the past year, rates have markedly increased, and the difference between the 10yr and 1mo rates is now at or near a multi-year high.
Quite logically, I expected my Canadian insurance holdings to show a significant increase in share price. However, this did not happen (or, at best, only very weakly). Why?
Thanks!

Q: IAG stock has recently taken more of a hit than I believe can be explained by interest rate sensitivity alone. There was news last week of a potential liability for IAG and MFC re predecessor companies and investments in "side accounts". Why then has IAG stock been hit so much harder than MFC? I hold SLF as well and it remains solid. Unfortunately I hold IAG, MFC and SLF in a ratio of 2:2:1 with the total of all three making up about 7% of total investment portfolio. Would you recommend any adjustments here?

Q: Hi, could I have your opinion on the statements below as they pertain to MFC. Should I be worried?
Thanks

Market Chatter: Side Accounts Could Bring Two of Canada's Life Insurance Giants To Their Knees; IAG and Manulife Cited
23 Feb 2018 10:12 ET

10:12 AM EST, 02/23/2018 (MT Newswires) -- In an era of higher interest rates in the late 1990s, two predecessor companies of Industrial Alliance Insurance and Financial Services Inc. (IAG.TO) and Manulife Financial Corp. (MFC.TO) issued life insurance policies that allowed holders to invest in side accounts that guaranteed rates of up to 5% and 4%, respectively, George Lewis has written in a Special Report published on the Financial Post's website.

According to Lewis, "these side accounts did not contain an explicit limit on the size of investment, which means in today's low-rate environment they are potentially lucrative for their holders and a significant liability for the companies that wrote them."

He added: "At least three limited partnerships purchased such policies several years ago in Saskatchewan, one of only four Canadian provinces that permit the purchase of insurance policies from their original holders. These investors are in court in Saskatoon to force the insurers to accept their money."

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: Over the last little while I purchased the above securities because of a rising rate environment. All have performed as expected except ECN.pr.A. Is there any particular reason for this. Would it be wise to average down . I’m still thinking that with rising interest rates their will be more demand for their services. What about the margin will this increase, decrease or stay the same ?

Q: Good Day Please rate in order for dividend safety, dividend growth and stock growth. I have no life insurers in my portfolio. Looking for an 8 year hold

Q: Banks-increase in interest rates, no increase in savings rates, spread widening.
Insurance Co’s-increase in yield on long term bonds,thus spreads widening.
What is your opinion on owning the above securities. I currently own all except FLI. Thinking of buyingFLI to diversify into insurance Co’s. Thank you for your help

Q: Just reduced short term position in OR with a 30 % annualized profit. Used money to take a position in MFC at 26.88 having second thoughts after today’s news on mfc. How will this right down affect the price or is it already price in ? This. Is my only position in insurance. Your thoughts.

Q: Hi,
I live in Ontario and we have private medical benefits through my husbands employer that cover 80% (to a limit) of our medication costs. I recently refilled my son's asthma inhalers. The government covered the entire cost and our private coverage (which we pay a portion for) now pays nothing. The government / tax payer now pays the entire amount and private insurance now pays nothing even when the customer has coverage. Do you think this will have a significant impact on any health insurance share prices/earnings? If so what companies would benefit the most by having a large client base in Ontario?
Thanks,
Kerri