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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello, I saw your answer to Stanley: “Bonds may look better next year, and may look better if the market weakens further.” We are expecting rates to climb, which will affect the bonds value. Normally, rates would already be higher at this stage of the economic cycle, and I would understand. I just don’t see the benefits of keeping bonds in ETFs with the current situation. We might as well hold cash or at least ST bond (held to maturity) for market protection. Could you help me understand? I am thinking about changing a portion of my portfolio (VBAL, XBAL MAW104) for a stock ETF / individual bond strategy.
Read Answer Asked by Patrick on April 25, 2022
Q: Hello 5i Team

I am reviewing a spreadsheet I developed for tracking Canadian REITs and the following REITS which were listed on the TSVX and I cannot find current information on:

LRT-UN – Lanesborough REIT

NHT-UN – NexPoint Hospitality REIT

PT-UN – Pine Trail REIT

RRR-N – R&R REIT

I am assuming these are all defunct, however where can I confirm that a company is defunct and the corresponding TSXV listing dropped.

Thanks
Read Answer Asked by Stephen on April 25, 2022
Q: I am low on my consumer defensive allocation.
1. Is this a good time to buy in this sector.
2. What stocks/ etfs would you recommend.
Read Answer Asked by SV on April 25, 2022
Q: TV

Flooding of mine. 8 missing. stock was at $ 1.85 now $ 1.11. Any word on condition of mine ?
Would you buy it at this low level ? RAK
Read Answer Asked by bob on April 25, 2022
Q: This is something I would rather discuss rather than post, but thats not doable.

So here goes. I've been a subscriber almost since your beginnings and more or less understand how you operate and the type of investments you would reccommend in your portfolios.

There is something that really puzzles me, especially given your experience, and know how.

Take SHOP as an example. About 5 months ago it hit a high of $2230. Today it is $595.

In between the highs and the low you have waxed eloquently about the market conditions and risks involved in the Q&A section, almost on a daily basis. You've talked about increasing rates, the aggressive fed, how high value stocks react very poorly to these conditions etc etc.

In the balanced portfolio it was purchased at approx $1200 and so it has gone from a 100% gainer to a 50% loser.

To me that is a very very large opportunity loss.

My question to you guys is this.

Given client sentiment and emotional well being (given people hate to lose more than they enjoy winning) why does 5i not adopt a strategy to prevent this from happening.

For instance, a widely adopted strategy that once a position doubles half is sold to ensure that there are no losses on the position. That would make a lot of people very happy.

OR, I know you resist this, but using LIVE trailing stop loss orders. Imagine if 5i adopted a trailing stop loss order, where there is no emotional involvement, just a limit to how much you allow the stock to retreat before selling it. Imagine if there had been a 20% TSL on SHOP. And you know what, if we are stopped out then 5i can reccomend in one of its monthly updates a repurchase if they deem it ok. How much can you miss out if you are out of a position a month or less?

Most would certainly say darn, we missed a few points, rather than saying darn, what am I going to do now?

I do subscribe to other services that have perfected these techniques and they can work very favorably , especially in horrific markets like we are experiencing now. For most subscribers it can certainly give Peace of Mind.

Food for thought

Sheldon
Read Answer Asked by Sheldon on April 25, 2022
Q: In this article, the author favours the BEP Preferreds instead of the common shares. Would you agree?.....

https://seekingalpha.com/article/4503184-brookfield-renewable-sell-common-buy-preferred-shares?mailingid=27474894&messageid=dividend_ideas&serial=27474894.25362&utm_campaign=Dividend%2BIdeas%2BLaunch%2B2022-04-24&utm_content=dividend_ideas_control&utm_medium=email&utm_source=seeking_alpha&utm_term=Dividend%2B%26%2BIncome%2BSmart%2BList

Read Answer Asked by James on April 25, 2022
Q: When I reviewed my T3s I found one that CRA had but which I had not received through my discount broker. According to the CRA copy of the T3 I received a capital gain on a fund (Ninepoint Energy). I had not sold any. When I searched 'Activities' for this fund on my broker's website I found the matching amount but it was listed as dividends. Does that just mean that it was a distribution of capital gains ($x/unit held) in the form of a dividend, but not an eligible div?

If this hadn't appeared on the CRA site I would not have known to claim it - I didn't received this form with the any others which the broker did send to me. (Common?)

Thanks,
Read Answer Asked by Peter on April 25, 2022
Q: An information circular I am reading says that shareholders will be asked to approve the creation of two new classes of shares, both Preferreds and that these shares will not be listed on the TSX (but will be subject to approval of the TSX).

How common is this, and how do they trade (how is value determined)?
Read Answer Asked by Peter on April 25, 2022
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