Investment Q&A

Q: My portfolio is lacking exposure to insurance cos., aside from a position in US Financial ETF (XLF) whose biggest holding is BRK.B. Which insurance co. would you recommend and why? GWO, SLF, MFC, FFH?

Q: Hi Peter,
Our portfolio is comprised of five accounts. Within the portfolio we have 12.2% in finance plus another 8% in REITS. The strictly finance stocks & percentages are:

MKP 3,5% (in TFSA & RIF)
BNS 3.1% (in Inv acct)
GS 2.4% (in Inv acct)
TD 1.6% (in Inv acct)
EFN 1.6% (in Inv acct)

Question: MKP is probably a bit weaker company than the others. Would it be reasonable to switch it for SLF, and would SLF provide a similar overall return to MKP over 3 – 5 years? Or do you have a different suggestion as a MKP replacement? Or would it be reasonable to keep MKP, which has provided a great distribution and a small CG.

The REIT holdings are:

HR 3.2% (in TFSA & RIF)
MRG 1.9% (in RIF)
REF 1.6% (in Inv acct) (CG of 125%)
AP 1.3% (in Inv acct) (CG of 150%)

Question: Would you make any change to the REIT holdings in the TFSA and/or RIF?
If the overall finance holdings are a bit high, perhaps the sale of a TFSA/RIF REIT would be appropriate to make room for a material stock. The only portfolio holdings in materials are MCR and G.

Many thanks. Bob

Q: I was stunned to see that Sun Life tops a list of Corporate Canada's mountains of cash - a recent Globe and Mail piece - with $6 bb. Could you speculate what they might do with it? Hopefully not purchase a US mutual fund like Great West did with Putnam! On the subject of lifeco's I stumbled across an ad for a class action lawsuit with Manulife, the stock that was touted to be as safe as houses. If you purchased shares between 2004 and 2009 - which I did - you should register here http://www.classaction.ca. It's free to join.

Q: I just rebalanced my holding in AYA. With the proceeds I am considering adding to either SLF or CGX. My avergge cost of SLF and CGX is pretty much at their current market value. At today's valuation, which purchase has greater upside? Thank you.

Q: Hi Peter and Team, regarding SunLife, SLF, your thoughts on their results and how you feel the stock will react tomorrow morning at open? Thanks!

Q: Greeting Peter & Co.
While I am currently a little nervous about the stock market I don't want to miss buying opportunities for quality stocks. I am considering adding to my very small position in Sun Life Financial, my only financial holding. Also, I am considering increasing my exposure to Canadian financials by initiating a new position in TD Bank.
I would appreciate you thoughts on these two potential purchases.
With appreciation,
Ed

Q: Hello Peter and Staff
Should I be concerned re SLF. Since purchase, based mostly on recommendation here, plus some personal research, on Feb. 28 it has been steadily down - almost 5% - in less than 4 wks. Is there something new in the interim. Should I hang on hoping to make up that 5% and perhaps make a little more over the balance of the year. Thanks very much

Q: I am just starting out and have about 4000 to start a portfolio. How many stocks would you recommend and which ones for growth?
Thanks

Q: in my growth portfolio which one should I keep - SLF/TRI/PWF - or another suggestion (3 years)

Q: If you could add one stock to your model portfolio, what would it be?

Q: Hi Peter

Thank you for your great advice . I am slowly weeding out the crap in my portfolio . I need your advice on SLF.PR.B...I am down 5000.00 in a regular account..do I just sell it and look for other opportunities? The other is FFH.PR.E. Down 13000. So what should I do . This one is in my RRSP ..
Your advice is greatly appreciated .

Candi

Q: I would like to buy T and SLF. Both charts look great, but both stocks are at 5 year highs. Are you comfortable with buying at these levels or would you wait for a pull back?

Q: Good morning
With the TSX market being so high after such a good run, what would be your choice for a large cap growth stock with a good yield for a TFSA account for retirees.
Thanks Jean

Q: Hello i'm looking to buy an insurance stock for a long term hold and set up for a drip program in my rsp. In your opinion what is the best insurance company? I'm deciding between slf, pwf, mfc.

Q: i own apple, potash and autocanada in my tfsa; i would like to add another stock; would appreciate your suggestions. with thanks

Q: Hi, all.
I look after the finances for my father, who is 76. He lives simply in a mortgage-free home and his monthly pension more than covers his expenses. He has some cash ($40K) and a GIC ($5K)and I have maxed out his TFSA, which contains CDZ, XEG, SPB, and BNS. That's it for his investments. I would like to add to his TFSA and, based on some of your answers, was thinking Sunlife and/or Boyd.
I would appreciate your thoughts.
Thank you

Q: I'm pushing 81, my wife is 66. We have CM, CPG, TRP in my TFSA and BNS,CPG,and IPL in hers. What can you suggest for this year? We are more interested in safety, dividends and drips but we would like to keep up with future inflation, so reasonable growth would be welcome.

Q: Would Sun Life (SLF-T) be ok for adding to a TFSA as an income/growth stock? Thank you.

Q: In a recent answer you mentioned the concept buying SLF as interest rate protection, Could you please elaborate. I assume you mean the insurers will do well when interest rates go up despite their recent run. Can you clarify why. Do you think the same would be true for the banks? I hold lots of bank stocks and this would please me very much. I hold few insurers an asking should consider holding my nose and buying more.
Thanks, Manfred

Q: Hi there
Wondering if I was to add an insurance company for a bit of a buffer to rising interest rates would either MFC in Canada or MET in the USA be a buy at this time in your opinion and if so which would you favour at this time in a registered account?
Much thanks
Stuart