Investment Q&A

Q: Hello 5i team,
From all the Q's & A's, we seem to agree that the sectors with the highest potential in the foreseeable future are Consumer cyclicals, Industrials, Tech, Health and Materials
My holdings are
Consumer (20% weight) ATD,BYD,CCL,CGX,DHX,DOL,LNR and MG
Industrials (11%) BIP,CNR,MDA,MSI,NFI,PBH,SIS,STN and WSP
Technology (17%) CSU,DSG,ENGH,GIB,KXS,OTC + think to add SHOP
Materials (4%) CHE,MX,SJ + think to add ZMT
Health (4% CRH,GUD,PLI + think to add ZMT,ZJG
Please comment,
Antoine

Q: I saw a report today that the Republican GOP is planning to introduce a bill to reform (lower) US corporate taxes that includes a so called "border tax" on all imports. Some talking heads have commented that if it becomes law as currently written the US dollar will see a big increase (as much as 25%). Have you heard about this and do you have any comments? Is it time to overweight US holdings to hedge against a currency increase?

Q: If one wanted to shift 10% of one's portfolio exposure from Canada to the U.S. is it better to convert cash from CAD to USD and then purchase stocks on an American Exchange or alternatively use CAD to purchase American Stocks (that also list on the TSX) or ETF's (holding US Stock) that list on the TSX?

Q: I'm in borderline Top 1% Tax Bracket, so I'm looking for a Flow Thro Fund. The Sprott 2016 Short Duration closed early, run by Eric Nutall. Can you recommend another? And, since I'm maxed out in my RRSP & TFSA, is it ok in a Margin/Cash a/c?

Many Thank

Q: Please mention sectors you feel should be over weight in Canadian and US markets. Intuitively, in expanding economy I would pick Consumer Discretionary, Industrial and Technology. You may have different answer for Canada and US.

What proportion of portfolio should be in US stocks.

Thing you

Q: Hi, What would be your top three REITS to purchase at this time in order of preference please. I plan to hold for 10-12 years. Thanks

Q: Greetings, Peter, Ryan & co.
While dividends are nice to have I do not require them from my portfolio. Reasonable safety is important to me. With that in mind would you please give me your top two or three picks (US or Canada) in each of the following: Healthcare/Pharma/Biotech, Technology, Energy, Precious Metals.
Please feel free to debit my account with as many questions as you deem appropriate.
With appreciation,
Ed

Q: Thoughts on this preferred that we have a 1+% position in as I am thinking of adding to it a % or 2. Any others as a better bet?
Thanks,
Ted

Q: I wonder if you can give your 5 best recommendations at this time for investment in TFSA or RESP for long term hold, irrespective of sector or balance. I have greatly benefited from being a 5Iresearch subscriber for the last few years. Thank you for the great service.

Q: Hi Peter
I am reviewing my so called balanced portfolio.as we head into 2017
Right now this is where its at.
NON STAPLES 10%--STAPLES 9%--FINANCIALS 18%--HEALTH 9%--ENERGY 9%
INDUSTRIALS 11%--TECHNOLOGY 10%--MATERIALS 14%--UTILITIES 4%
TELECOMMUNICATIONS 2%--
AS YOU SEE IT IS OUT OF WHACK--COULD I PLEASE HAVE YOUR COMMENTS ON ANY
SECTOR YOU THINK I SHOULD REDUCE EXPOSURE AND ALSO ANY I SHOULD ADD TO-
IF YOU WANT ME TO ADD ANY STOCKS TO SAY UTILITIES OR TELCOM--WHAT WOULD YOU SUGGEST---I CURRENTLY HAVE AQN-BEP.UN-FTS AND T--I GUESS I COULD ALSO TOP THESE UP----IN THE OTHER SEGMENTS I HAVE AT LEAST 4 OR 5 STOCKS.
THANKS --HAVE A GOOD 2017

PETER

Q: Hi Peter

Iam in a situation that i have about 300k divided amonst 2 tfsa and 2 rrsp account. I would like to invest these funds for income and safety. I also have about another 200k in these accounts divided between pwf bns and gwo. Could you recommend maybe 3 to 5 stocks to achieve my goals. I think it would be too much to try to replicate the income portfolio. i was was thinking equal weights of wsp T Bip cu fts or enb.

Thanks
Mike

Q: Good Morning 5i
Which companies will be active in advancing new or replaced pipelines in Canada in 2017-18?
Thanks.

Q: Just wondering if you've read the book "the little book that beats the market" and heard of his magic formula investing? Is it too good to be true? Or does the methods and practices actually hold water for long term investing results?

Thanks!

Q: Online shopping. What companies will benefit from supplying such things as packaging and shipping for the large companies like Amazon?

Q: Hi, with regards to the graph shown in the Jan 10/17 blog entitled The Rebalancing Trade. The X axis plots time. What is the Y axis plotting & how is it calculated. Also what is such a graph plotting time verse value % called. Thanks … Cal

Q: Further to Paul's question on the 15% withholding on US dividends, what is the situation if XYZ was not held in a TSFA? Do we, as Canadians get a tax credit for the 15% withheld or do we just lose it altogether? Henry

Q: Can you give me your opinion on analysts or advisors that give their evaluation or opinion on a stock based on their 'model'. You probably know some analysts that appear on BNN Market Call. They talk with confidence about the 'model price' of a stock that is above or below the market. Tell me if I am wrong but, an opinion which is not substantiated by explicit critiria be it technical or fundamental, should be avoided if one does not want to follow an advisor blindly. I know that these guys do not want to give up their recipe and appear on BNN to recruit new clients but it should be clear that when they are on TV looking at their crystal ball, it is actually an 'infomercial'. Unless you intend to purchase, there is no point in following their advice because you do not know on what it is based on.

Q: Claire had asked a question regarding the purchase of a equity all ready owned (at a profit) with the objective of reducing the cost base. I believe this will only work if you wait the 30 days before selling otherwise you would be in violation of the tax act.

Q: Hello 5i
My main question is similar to a previous one.
We have 2 RRSP, 2TFSA, 1 non-registered, 1 non-reg. corporate accounts. We are presently with a full service broker(approx. 140 positions), but will be transferring to a discount broker. We are now taking income, mostly from the corporate account.
1)Would you suggest treating them as one when we build our new portfolio?
2)Our intentions are to have 30-35 positions. Is there a point where spreading over too many different accounts can make the portfolio less effective?
Thank you in advance, Bill

Q: hello 5i:
I'm having a bit of trouble with the specifics of taxation on US dividends, on stocks held within a TFSA. I'll ask it in 2 parts. Perhaps the following example will put this one to bed. If we hold XYZ, a fictitious US company paying a $1 dividend (simplifying as much as possible), then a 15% witholding tax is applied. Correct so far. Now, are the remaining dividends ($0.85/share) taxed again, or are they free and clear?
Part 2: do the US dividends received from XYZ have to be declared in annual income tax reporting?
thanks for your help
Paul L