Investment Q&A

Q: Good morning,
I own a small house in Ottawa that is free and clear with a current market value of approximately $350,000.
A recent discussion with my trusted mortgage broker confirmed that a 5 year term (Closed & Fixed) term mortgage can be obtained at a rate of 2.29%. This mortgage is said to be:
a. insured through CMHC,
b. portable, and
c. transferable.
At that rate of 2.29% and given that the interest paid would be tax deductible if I use the funds for investment purposes, I'm seriously considering borrowing around $200,000 and investing this amount for an initial 5 year period with an expected net rate of return on investment of 4.5% .
Q1. With $200,000, what are your thoughts of splitting this amount in 5 different chunks of $40K in the following instruments:
a. Mawer Tax Effective Balanced Fund,
b. Mawer Global Balanced ETF Fund,
c. Vanguard Balanced ETF Portfolio,
d. IShares Core Balanced ETF Portfolio, and
e. BMO Balanced ETF

Q2. As an alternative to the above and given the 5 year time frame, would your preference be to invest the $200,000 in a selection of best in class individual stocks split between different sectors and if so, would you be so kind as to provide me with ya listing of your best ideas at this time.

I thank you and look forward to hearing your thoughts on both of these investment strategies.
Francesco

Q: Recently, in response to a question requesting your advice on a number of stocks including the above, you singled out MSFT and CRWD to "buy more". What are other stocks would you recommend to "buy more" at this time?
Thank you for your advice.

Q: Hi there,

I'm looking to purchase a full position of BYD. It's come off a little bit and I was wondering if it's a decent entry point of it's better to wait for Q2 for this company. I suspect with driving down so much, their Q2 numbers could be soft. What is your opinion and what would you do.

Thanks!

Q: Boyd is off about $33 in the last few days. I haven't seen you comment on this, do you think they had moved up a little fast and there is profit taking or is there news we should be aware of?

Q: I hold shares in both of these companies. Which of these stocks would you recommend for a 5 year hold and would appreciate your reasoning. Thank You.

Q: I'm a little concerned about the trade tension, possible 2nd wave of the virus, protesting, economic risk, etc.
Do you think we need to do something in case the market crash?
Currently I hold the above 4 stocks plus 20% cash. Are they safe? Any other stocks that you recommend?
Thanks!

Q: Hello,

My partner and I heard about 5i from a friend whose been using you for many years. You came with the highest recommendation.

I feel like I should be copying one of your portfolios, especially due to my lack of knowledge, but it is very important for me that my investments to follow my ethics.

I would like to know which companies on your balanced and growth portfolios would be highest on positive environmental, social and corporate governance, which are low and should be switched and for which companies. I'm happy to do research, but I'm struggling to navigate the important statistics and feeling incompetent in finding good resources. I have seen your ESG scores (https://www.5iresearch.ca/blog/ESG-tsx-companies) and would be keen to know where to find information on how they are created. I would also appreciate other resources that you think would assist in building a portfolio, or simply which companies you would put on it.

Thank-you,
Ellen Perkins
Ucluelet BC

Q: Can you give me names of 10 companies - CDN and U.S - that you feel have:
* strong balance sheets,
* a strong likelihood to survive or thrive in the current environment
* appear to be of good current value with an eye on a potentially strong rebound given a bit of time.
Your opinion is greatly appreciated.
Thanks

Q: I'm looking to convert a RESP invested in mutual fund (chorus II agressive growth) to lower fees and menage it more actively. Kids are 5 and 2 years old.

I was thinking to diversify with 3 or 4 ETF for 70% of this portfolio. What are your thoughts about a combinaison of VFV, XIC, XIT, ZQQ and DXG for long term? Do you have better suggestions?

Althought, is investing in XIT and ZQQ and DXG a good idea on short term since tech valuation is already high at this moment compared to other sectors?

For the rest of portfolio (30%), i would go with stocks. What would be your top 4 on short term (next 6-12 months) and on long term?

Q: I have full positions in the above except KXS and REAL. For available cash is there a stock that you like and would consider adding to this portfolio .

Q: Good Morning,
I'm looking for 8-10 Canadian stocks that you think will do well over the next few years , maybe a mixture of safe solid names mixed in with some higher risk higher growth names. To list a few ideas I am thinking of a bank , maybe BMO, ENB,BAM.a,LSPD,KXS,BYD,GOOS,GSY.
Please add and/or change as you see fit.
thanks

Q: I currently both both the above at 7% and 5.5% of portfolio - up 58% and 38% resp. in the recent past (thanks for your advice). Hold or reduce? I am fairly risk-tolerant but I see the dreaded word euphoria in your recent comments. Thanks Jim

Q: Hello Peter and co,
Thank you for your excellent advice. My grandson has opened a TFSA over the last few months, and now holds the following stocks (listed in order of value, largest first). He is in the enviable position of being up on every one of his positions, in part thanks to your wise advice (and some lucky timing)! With a bit of cash (~$2300) remaining to invest, he is looking for a recommendation, targeting growth and diversification.
He is considering these: LSPD, JPM, CAE, MDT, VET, PXT
But we would be more interested in hearing your advice, so please feel free to ignore the list above, and make a suggestion for 1 or 2 stocks to add.
Thanks,
Ed.

Current stocks:
XQQ
GSY
VFV
SHOP
CSU
REAL
KXS
BYD
BEP

Q: Hey 5i,

Easing a position into Boyd. Worth waiting for a pull back for the majority? Or is this a stock that if the easing is successful is going to just continue it's growth? Or would you have another recommendation that's similar.

Thank you as always for the great work.

Q: If a new investor had a $100, 000 to invest in Canadian & US Equities what would be the TOP 10 Stocks to invest today for the next 3 to 5 years.

Thanks Valter

Q: Which 3-5 growth stocks on the Canadian or American exchange are you most bullish on their long term potential?
Thanks

Q: Hi group 2 questions
- I was stopped out of Byd in late March since then have been waiting for pullback to get back in, unfortunately the stock just keeps going up. I am of the opinion the market is way overbought in general and my time should come or should I nibble away ? or do you have another strategy that may work. I intend to buy 1,000 shares over the next year
2 nd question I am thinking of buying Meg + Tog due to extremely low stock price Eric at Sprott has recommended them both as top picks - I respect his opinion what do you think ?...thanks

Q: Morning 5i,

As someone hoping their is a significant pull back. Seeing the overvalued stretching....

I am looking to add some diversification and growth with the "safest" possible.

My picks are;
BAM.A
BYD
REAL
OTEX
GSY
ATD.B
NTR
CNR
Is their additional ones that you can suggest or a couple swaps that are "better" overall.

Thank you for all the tireless fun!

Q: Please comment on their Q1 including their outlook remarks.
Also, do you think most of the bought deal being listed tomorrow will be placed with institutions and not be sold on the open market putting pressure on the share price?

Q: I am about to triple the size of my investment in the portfolio above and give equal weighting to all. Virtually all of this new money will be in non-registered accounts. In total, this self-directed portfolio will represent 20% of my holdings; I also have 40% in a growth-focused pension fund, and 40% in a mix of ETFs through a robo-advisor.
Do you have any suggested changes to the list of names? I am primarily focused on growth, with a 3-5 year horizon.
Do you recommend a different weighting e.g. heavier on some, lighter on others?
What are your thoughts regarding timing? I am tempted to put all of the new money in now, betting on the sustainability of the recent recovery. But I understand that a phased approach will reduce risk.
Thanks for your help.