Investment Q&A

Q: Assume for the moment that I believe that the current market has just experienced a pull back as opposed to being at the start of a longer downward trend (bear market, recession, ...).

I have about 25% of my portfolio in income generating, relatively diverse, ETFs (xhy, xpf, xtr, ...) but I don't currently need the cash flow. These fell more or less in line with the TSX - in some cases less.

I feel like now would be a good time to move these ETF holdings to solid individual companies that have done worse this year (BNS -20%, TD -18%, ctc.a -23%, etc.) and in a recovery period should do better than the ETFs.

Your thoughts on this strategy?

Q: Ryan; There was a weekend Globe article on HNL and it sounds like they have basically switched from building structures for the north to mainly the BC lower mainland. Could you comment on this change please. They hired away a top BC official from Vancouver’s affordable housing agency. Thanks. Rod

Q: What has happened to PLI?? It was once a recommended stock with 5i but now it is practically a penny stock. Will it survive??

Q: Hi,
Happy Holidays. Please deduct as many credits as needed. I mainly follow your balanced portfolio, some of your other two portfolios and some US stocks etc. I just transferred my pension to a LIRA and have 30% cash to invest. With this pull back the timing might work out well. Retirement is 12 years away and my husband has pension for the fixed income portion of retirement. I plan gradually start to deploy 20% of the cash (still hold 10% cash for now) and add to all my current half positions and increase my holdings back to full positions that been beaten down such as TCL.A, DOO, NFI etc. I am not sure about adding to the following and wonder if they are a show me story or a good opportunity. Their portfolio weights have dropped to roughly the 1% range all in registered accounts with no tax loss advantage. Would you add to the following or just wait:
FB
Photon
COV
DOL
ENB
BOX
Any other stocks in your Balanced portfolio that that you would not add to at this time? Does this plan sound ok? Any other suggestions/advice
Thanks,
Kerri

Q: can you please tell me why the performance difference between vfv and xsp which I believe have the same index and holdings....thanks...gene

Q: what are your thoughts on abandons plans to acquire music choice? Is it a good or bad deal? Should I add or sell only 1% of my portfolio?

Q: Happy New Year 5i
I'm interested purchasing some AQN. It seems to have the combination of some equity growth and a growing dividend. The one concern I have is payout ratio. Can you please comment on the high payout ratio.

Q: Which of these companies would you add to today or would you prefer other ones?
Thank you for your help

Q: With tax loss selling at the end would appreciate your pick of approx. 5 mid cap and 5 large cap stocks that you feel could do well in 2019 and beyond. I feel oil stocks are due for a bit of a rebound and the trade tensions will ease. Your thoughts. Thanks for the great service and Happy New Year everyone at 5i. Leaning toward stocks that pay dividend with some growth.

Q: After some frantic selling to beat the tax loss deadline I'm now in position to re-acquire the stocks sold.

The three I intend to re-acquire are: NFI, GSY and TFII, and what order should I re-acquire them? Certainly the order of the buy back should be based on the timeline of the foreseeable share price recovery, if at all. Thanks.

Q: Which one of the above stocks would you prefer and why? Long term hold in a diversifed portfolio. Already own CSU and Gud. Low to medium risk investor.

Q: I'm in the process of adding to/updating my consumer cyclical, materials as well as financial sector, with a tendency to a balanced vs. growth approach. I would like to add one stock of the below selection for each sector. Can you please give some guidance and as to why said particular stock should be selected?

C. Cyc.: GC / MG / TOY Materials: WEF / MX / CCL.B Financial: BNS / SLF / VB

Many thanks!

Q: I am wondering about the sector allocation of these two SU and PKI. Given that they are both vertically integrated could they each be split between energy producers and consumer discretionary some how. It will create some room in the energy sector for a couple of more companies like WCP and VET. If SU and PKI could be split what would the split be on each one.

Q: From Bob's question:
Q: I can move stocks in kind from my RRSP to my TFSA account,
Looking at some of listed stocks that have had a bad year. Which ones would you pick to move?
What would be the advantage? And the tax implications?

Q: Considering bitcoins' drop in value, does anyone have an idea of what percentage of nvdia's business is tied to Bitcoin mining? What other customer streams does Nvidia have and what percentages might they be? What has been nvidia's primary growth catalyst the last 3 years? Does nvidia's prospects continue to be bright going forward?

Q: I bought at 3.90 what option should I pick or should I just hold on to them Thanks

Q: It feels like the end of 2018 was simply a perfect storm of conditions suited to create an impressive (and painful) but not overly unusual pull back on the TSX. Yet there is talk of recession and looming bear markets (I suppose there always is).

What's your take on this? Would you be buying the many apparent opportunities (like mx, cnr, ctc.a) or would you be cautious still?

Q: Perhaps there is confusion between "averaging down" and portfolio rebalancing. If a person had bought GSY or TSGI at $50 and they each were 5% of a portfolio and were considered to have cheap valuations at that time. If, after the market correction they are each 3% of the portfolio with no change in fundamentals is there a problem with bringing each one back up to 5% ? I look at GSY and a consortium of investors put $46,460,000 into it at $50.50/share on Oct 10. I'm sure they did a lot of homework and considered it to be very cheap. It must be a steal now.

Q: About half a year after spinning off its electrical business, and now concentrating more on the water / filtration side, would you now consider Pentair a better investment than when the two businesses were combined ? I realize this isn't a Canadian stock.

The P/E has come down quite a bit since that time. They only raised their dividend 3% this year. Although they have a long history of increases, this one isn't great.

Thanks,

Jim

Q: Hello and happy new year 2019

My question today is regarding xhy which is composed of high yielding US corporate debt but trades in Toronto in Canadian dollars. It mentions CAD hedged. Performance of Xhy is rather dreadful since Oct 2018, is this independent of the two curriencies ? I would have thought that a depreciating CAD would help boost the NAV. Or would an appreciating CAD boost NAV. Your thoughts ? Also, could you recommend a mutual fund equivalent of Xhy (albeit with higher fees).

Thanks so much

Daniel