Investment Q&A

Q: Could you tell me the difference between JPM and MS.Thanks Phil.

Q: Hi Peter, Ryan and Team,
Thank you for the service that you provide, it's been invaluable.
I currently have held JPM for the last few years and it's effectively been a net gain of zero. I think it might be time to move on for a bit and perhaps look to buy back at a later date. We already hold VEEV, AYX, TEAM, DOCU, TTD, NVDA, and QCOM, so I'm looking for a non-tech suggestion as to where to move. I'm hoping that you could provide a list of 2-3 quickly growing large(ish) US companies that ideally are near debt free and meet this criteria.
Thank you again,
Mike

Q: US bank stress test.

I read about the recent stress test results. Apparently results in general are not great.
Apparently Wells Fargo may cut their dividend next quarter and JPM opened the door by saying it was possibility they too could cut in the future. Never heard of such from the Canadian banks.

I have 20% of my total RRSP portfolio in JPM, Bank America, and Bank of New York Mellon.

They big US banks in general performed very well since the financial recession but now I wonder for the future?

Stephane

Q: Hi group stocks appreciate your help picking your top 3 stocks in each of the following sectors - I am a medium to low risk investors and have a 50/50 Stock Mix in US and Cad
- Tech
- Consumer disc
-Staples
- Materials
- Energy
- Utilities
- Communication
-Financials
- Real estate
Please deduct credits at your discretion / Thanks for all your help navigating these difficult times it is much appreciated

Q: Hi guys...any thoughts on some beaten up stocks that could be opportunities for quick gains? can be Canada or U.S. thoughts are welcome...

Q: I raised a fair bit of cash in my RIF as the Covid madness marched on. I think I would like to buy USDollars with probably 1/2 the cash and buy some US dividend paying stocks. I need the income and I’m very concerned that this current government is going to cripple ( if not destroy) our economy..
I’m looking at stocks like Verizon, but what would you suggest?
Thanks for the great work!
Bob

Q: These banks have been "hammered" in the recent downturn (for good reason due to prospective loan losses, and near zero rates). That said, do you see the Fed mandating dividend cuts/eliminations in the future here, or is the market just really skittish about it? They all look "cheap" right now, but an elimination of the dividend would be a real reason for me to leave this space if it were as distinct possibility vs. a "tail risk". What is your take on this and these companies - do you see much risk in dividend cuts here? Or is it just a reflexive thought in that the European banks were mandated to eliminate dividends...

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: Hi Peter, Ryan, and Team,

Today (rightly or wrongly), I used the large uptick in the share price of CAE to sell my position that's held in my TFSA. (I sold with a gain of 4%, not counting the previous dividends.) I feel that the "airline" sector will still be under pressure after the present euphoria settles down, but who knows?

Having said that, please suggest two or three stocks or ETFs from each of the following sectors that could be considered somewhat defensive as well as being suitable for a TFSA. Portfolio Analytics indicates that I'm underweight in:
Basic Materials
Communication Services
Consumer Defensive
Energy
Financial Services
Healthcare
Industrials

Please deduct as many credits as you deem necessary. Thanks for the continuing superb service especially during this unusual time.

Q: I am looking to add one financial stock to me RRSP portfolio. I currently have TD as the lone finance company. I also have BNS , TD, BAM.A and VISA in other portfolios. Can you give me some names - US and CDN - that I can take into consideration. Preferably those with a safe, good and growing dividend. Your comments are greatly appreciated.
Thanks

Q: I recently asked a question regarding switching strategy from etf to individual stocks and i appreciate your answer very much. My question was generated by the response that you gave to James regarding investing in a diversified portfolio. At that time you gave him the follwoing names: TEAM, MSFT, GOOG, ROP, PG, BIIB, VZ, SBUX, COST, JPM.

Just a followup clarification on that suggestion. I wonder, because of the tax advantage for Canadian dividends and the predominance in the TSX of Banks and Telecoms, whether one might be better to replace VZ and JPM by Canadian names? I know that the question asked, I think, specifically for US names. But, just wondering if one held both Canadian and US, whether this might be better? Also, do you think that say, ten like this, is enough diversification on the US side?
thanks

Q: Hello Peter,
If you were starting a new account with 100k and wanted to build a somewhat balanced portfolio of 10 US equities, with a 10 year timeframe, which 10 would you currently choose, including considering current price?

Q: Can you give me 5 US based companies with perpetual preferred shares. Safety is the most important factor.
Thanks

Q: Hi 5i,
Would you recommend buying SRU.UN at the current price for a 5 year minimum hold? Same question for JPM please.
I currently have BCE and considering adding a new position in TMUS, Thoughts on the addition of TMUS at current price for a 5 year minimum hold?
Thank you
Terry

Q: Hi group recently I bought a Canadian bank along with BAC + JP Morgan since then it has gone down every day. The rally appears to be over or at least adjusting what is you view on these 2 banks I am down 10% in the last week- buy sell or hold ? thanks for you views on US banks

Q: Just wondering if you have an opinion about Wells Fargo. It's looking awfully tempting. If not, what US bank would you prefer? Looking for conservative growth. Thank you.

Q: Can you please explain why you prefer JPM and BAC over C? At current prices vs. previous highs, I am tempted more towards C. Thanks.

Q: Greetings 5i ....I hold RY and BNS in a registered account and I am considering a switch to JPM. Aside from the lower dividend do you think this might be a viable longer term capital appreciation story. Best Regards...Gary

Q: I currently own these stocks and am unfortunately under water on all of them.
Am considering selling two of these to incur a capital loss. Which of the two do you suggest I should keep?
With the funds raised from the sale I am considering doubling down on the remaining two. Or, adding either a Canadian or U.S. bank as another alternative. Would appreciate you comments on this strategy. And which Canadian bank or U.S. bank would you prefer.

Q: I have a position in BAC I have held for a while, sold over the years but still have a good sized position. Do you see any advantage of switching to JPM at current levels. Thank you.