Investment Q&A

Q: Dear Peter et cal:

Two part question. You may dedut as many credits as you feel fit.

1. There are a few experts who predict 60/40 portfolio is finished for several years! I was a subscriber to Portfolio Analytics for a while and it repeatedly told me that given my answers to your algorithms , I have to stick to 60/40 split.
What do you think about 60/40 portfolio in general,, especially for the many in the pre/semi fully retirement stages. No need for personal answer. Just a general overview answer would be fine.

2. If you were to construct an ETFs based portfolio TO-DAY from scratch, would it be different from the one that we see in Canadian Money Saver? What would it look like ,if it is different? 80/20? or 70/30?

As you have indicated that you can give personalized answers, please feel free to answer in general/overview/big picture terms.

Thank you in advance
Mano.

Q: I am a vlaue investor, 76 years old, good pension. 43 stocks, 16 ETF's including the above covered call ETF's. I do have some growth holdings (IWO, LNF, WSP).All are doing well except ZIM and SYZ (not worried). My question is the covered call holdings are 10% of my portfolio. Is 10% too much? I do enjoy the $650 a month dividends which have been consistent for the past five months.
Thank you
Stanley

Q: Hi - I am just trying to better understand apartment REITs in this environment. Such REITs seem to still be in decline even though everyone is talking about how residential rents are firm and/or rising. So are apartment REITs like this one more affected by rising rates and overall mkt sentiment...than the prospect of much higher revenues? Thank you as always!!

Q: I currently own these two REITs and they have, as expected, performed very poorly in 2022 - both down more than 30% YTD. Against the backdrop of continuing rising interest rate would it be advisable to take the losses and exit the REIT sector for now?

At present prime is at 4.7% (and continues to rise, latest rumour is another 0.75% or even 1% increase), while GRT.UN yields 4.2% and DIR.UN yields about 6% these two REITs are hardly enticing investments. What is your advice on this situation? Thanks.

Q: Please comment on Engh's acquisition today& its impact. Txs for u usual great services & views

Q: I own an Ishares all in one ETF to round things out. I just found out they hedge the currency on the non Canadian holdings. I tried to find out the cost to hedge but was unsuccessful. After doing more research I found the costs to hedge can be 1-2% a year. When doing a back test between IVV and XSP the hedged EFT lagged by 1-3% a year over 20 years. From 2002-2012 the lag averaged 2.1% a year but in the last 10 years the average lag was 1.1% a year. Do you know any all in one Canadian ETF's that don't hedge the currency?

Thank you.

Q: I have sold my European ETF because it has been doing so poorly.
The war has taken a toll.
Do you have a suggestion for ETF with more potential which would invest in companies outside of Canada?

Q: Hi, I appreciate the great work you have been doing to share knowledge.
I am considering the smith manoeuvre and would like to invest about $100K for a start in an etf vs Canadian dividend stocks. I would appreciate if you can share your thoughts on any ETF or ETFs that would be ideal considering the issues with ROC and ACB at tax filing time. I am also considering the importance of geographic diversification, hence the reason that I am not too convinced on going the route of Canadian dividend stocks. I am on the 50% marginal tax bracket and would also like to invest tax efficiently perhaps more towards growth than high dividends.
I look forward to your thoughts.
Thanks

Q: Is there any news for Ere.un's 4% haircut today. $4.20p/p, so loss some 22%. On a downward trend since $5.06 H in May. Is it time to move on or continue to hold? Txs for u usual great services & advices

Q: Hi
I am considering the smith manoeuvre and would prefer to invest in an etf rather than individual stocks because of the benefits of diversification. I would appreciate if you can share your thoughts on a few ets that would qualify and would also be less of a hassle in reconciling the ROC and ACB during tax time. I would appreciate your insight in smith manoeuvre using and etf rather that dividend paying stocks. I am in the 50% marginal tax rate. Thanks

Q: I am looking at the previous earnings reports and calculating p/e ratios etc. I notice that they put out news releases with “adjusted eps” only. Is this considered their eps? And is this the figure that is generally accepted to calculate p/e or is there another eps number I should be looking for?

Q: Current thoughts? Valuation and growth prospects?
Wondering if i should sell or hold.

Q: Hi.

My portfolio analytics says I'm low on Consumer Defensive. Can you give me 1-2 Canadian stock suggestions and maybe 1-2 ETFs in the US and Canada.

Thanks,
Robert

Q: Can you please provide some analysis of this company and whether you would find it investment worthy at these levels? Is the growth story intact or is it a broken company and a story that will end badly? An attractive entry point if you see one would be nice too.
Thanks!

Q: Your opinion on buying Fleetcor or Square going forward ?

Q: With all the risks out there in the investing world these days it's hard for me to decide on an investing strategy that I can trust enough that I will hold equities even as they react and go down when each new risk becomes noteworthy. I've decided that the best strategy for me is to develop a list of:
1. high quality
2. inexpensive stocks
3. that pay dividends that are sustainable through difficult times.
Based on this strategy what Canadian companies would you invest in now that fit the criteria? I would appreciate 8 of your top picks.

Q: I received the following in one of my TD alerts:

"Park Lawn ranks poorly in our screen as consensus estimates were significantly lowered after its Q2/F22 earnings miss last month. The 2022 consensus earnings estimate was reduced 19.4% and the 2023 estimate was lowered 11.6% (Exhibit 4). As a result, Park Lawn has seen its ranking in our QGM tumble to 223, and we are removing it from our small-cap portfolio."

Should I be selling PLC?

Carl

Q: Would you still endorse OKTA? Can I have your thoughts on earnings and longer term prospects? Thank-you.

Q: Quick question - Is the Sector Mix or the target percentage for each of the 11 sectors more or less based on the S&P 500?.....Tom

Q: DEA seems like a low beta US REIT with a tenant that will never default and a generous dividend - would appreciate your view of the upside and downside here.