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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 5i,

Please provide your opinion on the BMO "Blue Chip GIC"
It offers 100% capital protection + 1% rate of return (total over 5 years) and a 100% participation in the S&P TSX Low Volitility Index.
I have seen many equity linked GIC's before but never with a 100% participation.
Fine print indicates that the maximum allowed by law is an average of 60% per year. The negatives I can see with this;
Possible opportunity loss of only a total guarantee of 1% over 5 years.
Money is locked in for 5 years.
Returns will be considered as interest not capital gains, so it would only make sense in a RRSP and or TFSA.
Is there anything else I am missing here?
Thanks,

RD
Read Answer Asked by Randy on October 11, 2016
Q: Hello Peter,
Any idea why these stocks:Pacific Insight, Fairfax, Knight, and Stella Jones have been declining of late, especially Pacific Insight. It has been hit very hard after their earnings. Is it a good time to pick up these 4 companies given the current decline? Thanks very much.Umed
Read Answer Asked by umedali on October 11, 2016
Q: Hi team - I know you don't cover Novo Nordisk. I'm trying to find the dividend tax consequences holding this ADR in an RRSP. I have no success finding out what agreement we have with the Danish government. Are you able to help?

Is there any concern about competition for this company? Will margins suffer?

Jim
Read Answer Asked by James on October 11, 2016
Q: What's your advice for a younger investor with regards to TFSAs and RRSPs versus non-registered accounts? Should we direct all our savings to registered accounts until we max out our contributions and then direct excess to non-registered accounts? Is there a case to be made for the tax-loss advantages of non-registered accounts before looking at RRSPs? I see TFSAs as a more liquid savings account and an RRSP as much less so. Thanks.
Read Answer Asked by Jordan on October 11, 2016
Q: Is United Health (UNH.us) one to sell given the unusual political volatility? My question was also prompted by my renewed awareness that I may have over-allocated funds to bio-tech companies, and older-line pharmaceutical companies listed in the US and Europe. UNH is neither bio-tech nor pharma, but would it be safe from the ongoing and apparently increasing Congressional frustration with the entire industry.How would the abolition of the Advanced Health Care Act affect UNH? I am fine riding out the political yelling, so long as you think UNH still has a good future, with dividend growth and some price appreciation.
Read Answer Asked by Adam on October 11, 2016
Q: Hello,

The following 5 companies are on my buy list to complete my portfolio:

PBH
TOY
NFI
BCE
CAR.UN

I have room for two in my TFSA, two in my non-registered and one in my RRSP. How should I divide the above 5 stocks into these accounts?

My plan is to buy on pullbacks. But I'm thinking about buying CAR.UN now because it has already pulled back on the mortgage news. Does this make sense?
Read Answer Asked by Carla on October 11, 2016
Q: I have been quite patient with Husky Energy (HSE) having bought in 2011 and earlier. The reward for my patience has been a drop in value of 36% excluding dividends. Since the stock is up about 16% YTD, is it a good time to sell the stock (RRSP) and replace it with something else. In my RRSP I have too much oil already so would like a recommendation outside of oil and gas. I am retired and relatively conservative but don't need a return for 5+ years. Also I am prepared to keep HSE if it's the best thing to do.
Read Answer Asked by ED on October 11, 2016
Q: ABT has lost 15% of its value in the last 2 months. Any reason for the drop? Would you buy more (up to your maximum allocation)?
Read Answer Asked by Douglas on October 11, 2016
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