Investment Q&A

Q: Rumour is when government bring the budget,capital gain increases to 75 percent(at present is on 50 percent).Any advise appreciated.Thanks.Ebrahim

Q: I subscribe to StockCharts.com Do you know of any similar type of charting service or website where it is possible to chart Canadian MARKET CAPITALIZATION changes over time?

Thanks for what you are doing in the small cap niche. Interesting too how trading volumes react as various market cap thresholds are achieved.

I know you mentioned on one of your previous webcasts but could you indicate again what market cap value thresholds are significant when it comes to potential formal institutional coverage as well as fund purchase eligibility.

Q: Peter, can you kindly suggest five investments that typically pay no dividend or other distribution (tax minimization). This would ideally be for a 5-10 year+ holding. My risk tolerance is medium-to-high (but just short of 'stupid'). If one or two of these suggestions were US companies (other than Alphabet; already owned), that would be fine. Thanks as always!

Q: This note is for the team member who answered my question about ALA.R:

My good Sir, you have a fan for life. I asked my question in the middle of the night (by my calculation it would have been about 5.30am Eastern) and, after I sent it, I clicked back to the Q&A section - and there was my answer!!!! Speechless hardly describes my admiration for your work ethic.
Again, thank you for everything.

Q: If one has stocks/investments in a personal unregistered margin account, can they move it to business account for better tax treatment of capital gains and dividends. Will this work in practice?

Q: Where will I find the information on your american etf or individual stock recommendations?

Q: With all the talk about the future of drones with Amazon etc.. what companies are in the hardware or software space related to drones. Is it too early to invest?

Q: Hi, if a person has $25,000 to invest, how would you allocate it? they are 63 years old, a fairly high risk tolerance, and won't need the money for about 8 years, thanks? this person only wants to invest in equity, etf's, stocks

Q: Peter ..could you please comment on these two strategies. TY.

Q: can you comment on the potential investment merits of Pender Growth fund -PTF ON VANCOUVER

Q: I have been considering moving to a larger percentage of cash (60-70%)
My concern is that with the proposed tax plan due from Trump next week that the market is thinking one thing and if it does not line up with what is proposed that we will see a dramatic fall.
Can I get your thoughts please.

Thanks

Q: Hello 5i team,
Much is being said about protecting one's portfolio in the event of a correction; here is what I think.

Let’s assume that my portfolio is worth 100k, 5k of which is in gold (5% as you suggest).

If the market corrects by 10% and gold appreciates by 10%, the value of my portfolio would drop to 91k (85.5k equity, 5.5k gold); If I did not hold any gold, my portfolio would have dropped to 90k (or 1k less).

If the market corrects and gold appreciates by 20%, the value of the portfolio would drop to respectively 83k and 80k (or 3k less).

If the market corrects and gold appreciates by 40%, the value of the portfolio would drop to respectively 64k and 60k (or 4k less).

I conclude that holding 5% of my portfolio in gold does not provide materially significant protection in any of the above scenarios.

If one desires real protection in any of the above scenarios, 50% of the portfolio should be in gold; only then would the value of the portfolio remain intact.

Your comments are most appreciated,

Antoine

Q: You talk about sector and asset weighting based on an entire portfolio. If one's portfolio is say $50,000 and a 9% stock weighting is $4,500 is it worth the fees to sell and re-balance? Does the answer change if it's a long term holding? What if the individual is making regular contributions of $10,000 / year? Could they continue to hold that 9% position and reduce it over X number of years by investing in other assets?

Q: What do you think a minimum % position should be for individual equities? I have a very diversified portfolio, but I think some of my positions are to small.
Thanks David

Q: Just wondering if you can give me a list of three to five stocks that pay dividends as eligible dividends for the tax credit. Prefer them to be paid monthly. I want dividends as well as some growth if possible.

Thanks

Q: The markets have had quite a run and I am considering the manner in which I can protect the bulk of those gains. Although I acknowledge and understand that market timing doesn't work, intuitively given the extent of the market run, the odds of a pullback must be greater and therefor are not some hedging strategies prudent at this juncture? How can I hedge those gains in a self directed account with a mix of registered and taxable accounts, the bulk being in taxables which have in certain securities significant gains? Thx

Q: I am interested in listed companies that manufacture and sell robots for warehouse use. I think this market is going to grow substantially in the next while. Can you suggest some companies that are involved in this area ?

Q: If I want to have cash for future purchases, what is the best way to raise cash in a portfolio of stocks? e.g. sell losers, trim profits across several stocks?

Q: OCLR dropped 11 percent yesterday on a rumour it may lose ZTE as a client. Is this a buying opportunity or is the risk higher on this name now?

Q: Small caps REALLY seem to be moving, many which I own from your growth portfolio. For example, PLI, IRD, PHO, CRH, ECN, TNC, GUD, SVI, and ITC. Is it the individual stories for each stock that is pushing prices up, or do you see a larger rotation into small caps? Do you feel their is still value in the names above and in small caps in general?

Regards,

Robert