Investment Q&A

Q: Hello,

After reading the article on 5i 'Investment Model Portfolios' - May 6, 2019 I had a question regarding this post in relation to my current equity portfolio.

My portfolio analytics indicates that I should be allocating 25% to Canadian equity, which seems high to me. This article mentions that the big providers/firms allocate about 31-32% to Canadian equities, which I found a bit surprising, given Canada is only about 3-4% of the global equity market. The article does note that for Canadians, having a home country bias can make sense (dividend tax credit and tax reasons), which makes sense.

My question is this. For the average Canadian investor, does 25% of one's equity exposure to Canada seem high (even given the added benefits noted above)? I am guessing there is no 'perfect' answer to this question however, I look at this as making a big bet on oil and financials. If Canada is 3-4% of the global equity market, could one not argue that even doubling Canadian exposure, say up to approximately 10% of equity portfolio, be a reasonable allocation?

Thanks for your insights on this.

Q: June 26 John asked about his daughter putting 10k into RESP and what ETFs to buy. John and his daughter should be reminded that they will only get $500 CESG (unless she has other kids and it is a family RESP).

Q: I tried to buy 100 units of this on my TD Webroker Account for CAD$5,000 and change. Got an error message telling me to call a TD rep at an 800 number. The rep told me that I could not buy this through them. I have never run into this in the past for any stock or ETF that I wanted to buy or sell. What brokers take orders for PSA:CA and which brokers will not take these orders.

Q: HHC announced today they have hired a company to explore strategic options, including a possible sale of HHC (surprising) . I love the assets here. It popped 42% today, although off of lows. I am holding on, thinking of selling some covered calls out of the money, or possibly selling some of my shares outright. I'd really appreciate your opinion on what this company is worth., before making any decision.

Q: I noticed that this ETF is listed as 100 % basic material industry but when looking at the top 10 holding they are mostly bank preferred shares. What would be the better industry classification for this ETF?
Do you like this ETF or would you prefer another one or this one?
Thanks

Q: Can you please explain the drop in VNR today? Prior to the ex dividend date(June30) I would expect a rise?
Thank you

Q: How much of BB is owned by Fairfax. As far as Fairfax's investment is concerned, how important is it that Blackberry does well.

Q: Peter,

Is the rate reset spread on preferreds only good until the reset date? If so, do companies tend to renew at a similar spread or can it vary greatly?

Thank you

Paul

Q: I am retired and rely on my dividends to supplement my pension. I own full positions in TRP, PPL and ENB. I am starting to get worried about ENB with all the talk of lawsuits, Line 5 and Michigan. I am considering selling ENB and either adding to my PPL and TRP positions or buying IPL to replace ENB. Your thoughts ?

Ken

Q: Would be grateful if you could tell me in which of the above funds is it most beneficial for me to hold cash in a managed account - 1% fees?
What is the difference between the 3 - are there MER's. In which fund would a financial advisor hold his cash? Would appreciate any comments on this subject.

Q: I am considering switching from PWF to X .
I think the total return picture for the next five looks much better for TMX group. Your opinion please taking into consideration the capital preservation factor.
Raouf

Q: What are the fixed income funds in your income portfolio?
What are some fixed income stocks that have had favourable returns?
Can one hold U.S. funds in a TFSA?

Q: so if you hold trz what do you do now.
and if the big shareholders already stated they willnot vote for takeover at 13.00, why would trz accept 13.00.
the whole thing makes no sense to me. dave

Q: Hi Peter and Company:
I am under water re. above 3 US companies and 1 Canadian. Your advice, sell or keep? If sell, your recommendation with what to replace in growth companies, sector not important.
If keep, why? I prefer to trade if there is something more promising then
long term wait.
Thanks, Much appreciated as always,
Klaus

Q: Hello,
I was wondering if there are one or two diversified ETF's that cover all sectors and all geographies. Could these ETF's replace a well diversified portfolio of 30 different ETF's which cover the same/similar sectors and geographies. This would simply the maintenance of my portfolio. I would also appreciate your opinion on the effectiveness of such ETF's if they exist.

Q: Good timing to intiate a position ? Thanks.

Q: Hi , Gang any thoughts on this Co. is Div safe.? Would you buy ? . Thanks. Alnoor

Q: Hi there, what would be the best way to play bitcoin if one wanted to purchase either an Etf or individual company? Thanks!

Q: I am looking at your : "Stocks that Pay Monthly Dividends" spreadsheet have a few questions. First, looking at CHP.un just as an example, debt to equity is 205.5%. Seems high to me but do you feel this is OK? What other metric would you consider if it is OK to you?
Second, their payout ratio is -52.9%. I understand that a payout ratio of more than 100% means part of your monthly dividend cheque is a return of equity (to be avoided as, theoretically, your equity position is diminished with each cheque) but what does it mean when the ratio is in a negative position?
Third, some listings, BPF.un for example list no payout ratio. Why is that?

Thank you, by the way, for this list. Fascinating.

Q: Hey,
I’m down 20% on Photon right now, it makes up just over 2% of the account it’s in and around .5% of total portfolio. I held through it’s great run up last then watched it fall lower than I started. Are you confident enough in another future run to look at the price now as a good chance to average down? Or is it too speculative and I should just hold now and be patient.
Thanks