Investment Q&A

Q: Dear 5i,
In regards to Horizon's ETF; HBB.TO
There web site says the MER is 0.10% and the swap fee is
no more than 0.15%. Does this mean that %Gross Total Return gets
reduced somewhere between 0.10% and a maximum of 0.25%?
Are they any other fees other than trading fees I need to be aware of?

Q: Could you comment on the Q4 and full year numbers. Is this becoming a profitable co. Would you buy?

Q: Office reits are trading at considerable discount to net asset value. Are there any Canadian Office Reits you would recommend at this time. One criteria would be low levels of leverage.
Thank you.

Q: Good day,

I was considering parking US$ funds from my brokerage account in SPRXX (Fidelity® Money Market Fund) or VMFXX (Vanguard Federal Money Market Fund). However, I am given to understand that Canadian citizens cannot own US mutual funds. (Thank you for the guidance!)

Is there something else that you can suggest for US$ in lieu of these? How do they compare to Canadian ETFs CASH.TO or PSA.TO in terms of safety etc?

Thank you

Q: Rick Rieder from Blackrock posted that fixed income is setting up for generational returns. Also "on a relative valuation basis, stocks cannot be considered the cheaper asset". Would you agree that its shaping up to be a big opportunity to buy fixed assets, and if so what tops your list? Thx

Q: I am down on TRP and also own ENB and PPL. Can you give your view on TRP's recovery. Hold or sell or ?? add while it is down?

Q: I am debating between Costco and Siemens for a roughly 2% position. I have slightly more Consumer Discretionary versus Consumer Staples exposure, but I feel like I have decent expsoure to each. Costco interests me as potential long-term holding with a track record of consistent success; Siemens interests me for its broad exposure to all things technological, including the fields of automation, medicine, power distribution and electrification. I could ultimately buy each, but I only have enough free capital to purchase one of the two at this moment. Using the criterion of a five-year time horizon or longer, which would you deem to be a more prudent investment?

Q: Everyone, when to sell stocks? My theory is to buy the best of the best stocks and keep them forever (AAPL, AMZN, MSFT, NVDA, SHOP), over my investing career of thirty plus years. But I have had a few problems (LSPD…). Usually they are growth stocks that don’t continue to grow. If you have a suggestion(s) for triggers to sell a stock I would appreciate those ideas. Clayton

Q: Hi Team

Can you give us your top 5 Industrial Canadian stock picks for next 24 months

Thanks Mike B

Q: Good afternoon,

I currently hold XLE in my US Non Registered account and am considering taking profits now and adding an equivalent amount of XEG in my Cdn Non Registered account.

Notwithstanding the capital gin tax implications, do you think that the Canadian Energy sector offers better potential returns than the US Energy sector should Oil prices go to $90 and above and if so what would be your best idea in the Canadian Energy sector?

Thank you.

Q: What would your preference be right now? UNH or ABBV?

Q: Which would you say has more potential to be very successful, NVEI or LSPD?

Q: Please provide an overview of your thoughts on best sectors to be invested in for growth in next 12 months. Ranked highest to lowest. Thank you.

Q: Thinking about selling Crew as I think natural gas will continue to be weak for a few quarters if not years. I'm hesitating because I wonder about the value of their tax pools to other firms. Are there any Canadian oil and gas firms that will be taxable in the near future that might look to acquire companies with large tax pools?

Q: Saturday morning on CBC Mark Warner warned viewers not to be too overconfident about Canadian banks compared to US banks. His reasoning was that Canadian banks have been buying banks in the US.
As I am a holder of Canadian banks this has me concerned. I was wondering if you could shed some light on his comment and which banks might be at the most risk.

Q: If I have capital losses from any previous years (including 2022), are they automatically applied to my capital gains by the CRA when I do my tax return?

Q: I have a 2% position (of overall portfolio) in Savaria, and up until I looked up its sector classsification, I had considered it to be in the healthcare space, given it is in the business of improving accessibility for those who are physically challenged. As per the Yahoo! Finance portal, Savaria is listed as an industrial company. This investment is held in a RRSP account, so capital gains taxes are not a concern.

My questions are as follows:

- Is it reasonable for me to continue considering this as a healthcare investment, due to its target consumer base?

- Using a long-term (at least five years or longer) time horizon, would you be able to name any other potential companies of interest in the healthcare sector in both the Canadian and US spaces which I could target as potential replacements? The availability of a dividend from a replacement investment would not be a requirement for consideration for me: I am primarily concerned with total return over a longer time horizon.

- Of these companies, would any of them serve as probabilistically (given there are no guarantees in investing) better investment vehicles given the time horizon I have provided?

As always, I appreciate your time, and I look forward to reading your response. Thanks so much!

Q: I bought ERE.UN a few years ago when CAR.UN got involved with them . The thesis among a lot of analysts recommending them was " growth " ..... Then Covid showed up and the stock has languished ever since. I haven't lost any money but I am getting bored with it. So what is happening internally with the company ? What has management been up to ? Has this lofty growth everyone was excited about disappeared ? How does 5I rate this REIT ? .... Thanks Garth

Q: Hi Peter, Ryan, and Team

In your answers to other members, I’ve observed that National Bank isn’t one of your recommendation, and I’m wondering why.

Their 5 year CAGR is 9.4%. For the 3, 5, and 10 year periods, the beat their peers (BMO, CM, RY, BNS, and TD) by 6%, 6%, and 3% respectively.

Watching the negative news involving GSY, I’m considering switching it to NA. Since we’ve held GSY for some time, we’re still up quite substantially.

In our combined accounts, we also own TD, which we’ll keep.

I’d appreciate your thoughts on this proposed switch. Thanks in advance for your insight.

Q: Retired, dividend-income investor. My wife and I are 68 years old. I receive a company pension, along with CPP, OAS and income from an Insured Annuity.

It has been quite a while (years) since I asked about your suggested asset allocation for the equity portion of a typical conservative retired investor. Could you please provide me with your suggested allocations to the 11 TSX sectors that you think is appropriate in our circumstances. I will then adjust as I see fit, if necessary.

I understand that your answer is without the benefit of more knowledge specific to us.

Thanks....much appreciated...Steve