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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi,

If you were to look at your Income Portfolio with a critical eye, are there any companies or ETFs there that you would consider at high risk of reducing their dividend/distribution? If so, why?

Thanks,

Gord
Read Answer Asked by Gordon on March 13, 2020
Q: Oil analysts on BNN have said the producers with good hedges on will do the best through this price war and corona virus impact. What large, mid and small cap producers hedged out for several months this year or further? Thanks
Read Answer Asked by Gordon on March 13, 2020
Q: Can you please advise as to which large cap oil sands company have hedged their oil price exposure and for how long and which would u recommend among that list. Thx
Read Answer Asked by Patrick on March 13, 2020
Q: 5i
Being retired with~40 % in bond ETF`s as my fixed income and thus part of my relatively safe part of the portfolio , i was quite surprised when equities dropped so much today , that the bond ETF`s dropped considerably as well ie CBO , ZAG and XBB . They all dropped ~4% .
Can you help me to understand why bonds would drop so much under this scenario ? If investors are fleeing to safe havens such as treasuries and bonds and out of equities why do bond prices drop particularly as much as it did today ?
Thanks
Bill C.
Read Answer Asked by Bill on March 13, 2020
Q: Good Morning
The TSX has dropped about 30% from its peak but POW has dropped 39%. I will greatly appreciate it if you could provide some insight as to why POW has dropped so much compare to the TSX. Are there any specific issues related to this company?
I am inclined to start gradually buying at this level by buying every time there is a further drop from the $20.39 level.
Thank you
Read Answer Asked by Terry on March 13, 2020
Q: HI Guys
I have never used any margin to do any investing but thinking of when I was around in 2009 and some CDN banks were yielding over 10% and wondering afterwards why I did not but more of these, suddenly, high yield "safe" investments. Afterwards it stuck myself how nice it would be to have that yield for life! So this time around I have no debt, a house paid off, and considerable assets, so was thinking of borrowing a bit to see if we could take advantage of this unfortunate downturn. So wondering if you could suggest 5 CDN companies to invest in, in 5 different sectors, and whose stock value has dropped considerably. Companies that have great risk management, have rock solid balance sheets, that are now yielding above 5%, and whose stock you could see substantially higher when the market swings up again, or at least will maintain their dividend. Thinking in terms of time - at least a year or two here.
Much thanks for all your guidance through these tough times.

Stuart
Read Answer Asked by Stuart on March 13, 2020
Q: Your thoughts on this pls Peter/Ryan and team: with the VIX over 72 as I ask; historically (and I know all bets are off in this environment) and a best guess: are we "somewhere" near maximum panic?
Fyi I have been a net buyer over the last couple of weeks, panic creates opportunity imo. Your thoughts and opinions have been invaluable even though some have been hammering you for your answers..thanks!
Read Answer Asked by Harry on March 12, 2020
Q: Perhaps I missed something.Do you have a report out which is recommending a 'wholesale change' to your portfolios?
Read Answer Asked by maurice on March 12, 2020
Q: Hi 5i
Just so you know, I was going to ask a very similar question to the one asked about potential portfolio adjustment. I too read into your answers as preparing to repair a damaged portfolio.

My concern here is after reading most of 5i answers and trying to align thinking like long term manager, 5i takes this opportunity to wholesale change the portfolio. To make a move of this nature for an investor with skin in the game would suffer huge losses where it is a key stroke for 5i.

I can only hope to be profitable sometime again in the next ten years.

Dave



Read Answer Asked by David on March 12, 2020
Q: I wonder whether you could tell me what you mean when you use the phrase “do not need to be owned now.” I have both VET and WCP. WCP, at least was in the green for me until this sell off started, and higher fairly recently. Both were recently described as OK, albeit within a riskier sector.

I might not “need” to own them, but I do. Selling now would lock in a massive loss, percentage wise, and provide little capital to redeploy.

I’m not asking that you advise me to sell or hold, but in such circumstances, were it you, would you take the loss (non taxable account) and buy a tiny amount of shares in something more stable, or would you do nothing except turn off the TV, stop reading questions like this, and come back in a few months?
Read Answer Asked by Danny on March 12, 2020
Q: I see in many of your answers to questions you mention that certain 5i Portfolio companies are 'under review' eg MX.

Currently the TSX is being devastated. Including most stocks in the 5i Portfolio.

Of my holding currently where most were profitable a month ago they are now as follows:
BYD - 17%
BRP - 40%
Goos - 57%
CCl -47%
ENB - 23%
EIF - 24%
ET -17%
GC - 57%
Lspd - 44%
MMX- 42%
MX -70%
PPL-40%
PBH-22%
STC-39%
SYZ-39%
SLF -20%
BCE-15%
GSY-10%
NWC-33%

In this type of situation are you now going to possibly state that you have decided to sell the equity from the portfolio? EG on Mx that would crystallize a 70% loss. etc etc.

Many of us follow pretty religiously your buy/sell suggestions and given where these equities are now, isn't it too late to take them out of the portfolio due to the losses they will cause ?

Thanks

Sheldon
Read Answer Asked by Sheldon on March 12, 2020
Q: I am a retired income investor. Before the first big drop I was lucky enough to sell any stocks that I deemed to have a questionable balance sheet but kept things like BCE and ENB leaving me approximately 50% cash. It would seem prudent at this time to do some swaps to capture capital losses but not increase risk much and leaving me with a capital loss carried forward. eg. Sell BCE and buy Telus. What do you think of this?
Read Answer Asked by Don on March 12, 2020
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