Investment Q&A

Q: I hold TD and RY in my portfolio and I am considering adding another Canadian bank. I have narrowed my search to BNS and National. Can I have your thoughts on both and which one you prefer at this time. Thank You.

Q: WHAT ARE YOUR CURRENT THOUGHTS ON ZWK ?

I HOLD A FULL POSITION IN US BANKS.
IS ZWK A GOOD HEDGE AGAINST A SLOW RECOVERY FOR THE BANKS ?

THANKS, HUGH

Q: Would you buy FFH today? Long term hold. Thank you.

Q: Would be interested in any comments you may have re Blackrock for a long-term investor

Q: Can you comment on BK earnings? Because it is a custodian bank (different model),do you consider it overlap to own both JPM and BK?

Q: I am looking to alter my financial holdings into November and currently hold. 1 % position in WFC, BMO, BNS, FSZ, and SLF. I am considering replacing BMO and BNS after/before month end respectively and taking up positions in IVZ and JPM on any pull back.
What would your advice be, and/or do you have any more preferred suggestions?

Thank you in advance

Peter

Q: I am looking to invest in one of these two companies. as a way to play the real estate market other than through the banks. They both seem to have good management. How secure is their dividend and who would have stronger growth prospects? Any other comments greatly appreciated and do you have a preference? Thanks. Derek

Q: Could you give me your take on this ETF compared to investing in the banks directly. Risk level?

Q: Hello, a new ETF (stock symbol: HCAL Hamilton Canadian bank 1.25 x leverage ETF) is going to be released in the market soon. At the moment, I don't have too many Canadian bank stocks in my portfolio. The 1.25x leverage and 6% yield seems interesting, especially as the price of Canadian bank stocks are quite low now. What are your thoughts on this ETF? Thanks

Q: I have been following 5i advice for a few years now and it has served me well. Thanks! However, this is the first time I have had a question that I haven't seen an answer too in the forum; I some capital that I need to invest shorter term 1 - 1.5 years. Everything fixed pays next to nothing, so where should I be looking at this time? Bank stocks with a safe dividend? Other high dividend slow growth companies? If so, which would you recommend? Thanks, Dan

Q: Is this pref. still paying a dividend? If not, is it cum. and they have to pay in the future. Is it worth holding? ...Cec

Q: I am thinking of selling Ecn and replacing it with Abt.ca in your opinion is this a good move?

Q: I just read this article in the G&M and was wondering your thoughts - “ The Hamilton Canadian Bank 1.25x Leverage ETF (HCAL), The Hamilton Canadian Bank 1.25x Leverage ETF (HCAL) invests in all Big Six bank stocks.

But what’s novel here is that the fund employs 25-per-cent leverage. For every $100 invested you will get $125 worth of exposure to the Big Six. The sweetener: Leverage will boost the dividend, to more than 6 per cent based on current bank stock prices.

Q: Another question regarding sector allocation. I am overweight in Financials (20%), but would like to add either SLF or TRI. The Financials I currently hold are: BAM, BIPC, X and VISA. Are the economic drivers sufficiently different for either SLF or TRI that I could justify further overweighting this sector? Thank you.

Q: I have accumulated far to many Insurance stocks over the years and need to trim a couple. Which of the above companies do you think offer the best capital appreciation over the long term?
Thanks

Q: I have a question or perhaps it is a comment on the TMX group. It is a stock that in my opinion flies under the radar, it is not often mentioned in the media that I read or watch yet it has outperformed good companies such as CNR in the past 5 and 10 year periods. I would like to add to my position and would appreciate your thoughts and comments. Thank You.

Q: Dear 5i team,
NA, CM and RY have seen recovery to an encouraging extent.
BNS, TD and BMO much less so.

I do bear in mind that not all banks were/are uniformly exposed to risks precipitated by the virus; those that needed to increase reserves against losses have done so I believe. I’ve not sourced reports indicating any bank is not prudently shored up with loss provisions.

Would it be too soon to start a monthly purchase of BNS, TD, and/or BMO - small amounts, say $1k?
If it is too soon, what are you looking to hear, read about, or see happen that would tell you buying can begin?

Thank you so much!

Q: Hi crew, I see many loan defaults in the near future, is your conviction of GSY the same? How so?

Thank you,
Kevin

Q: A respected analyst stated: DO NOT BUY THE BANKS!!!
Here are his reasons:
- Not only are they facing pressure from a flat yield curve but every aspect of their business is being disrupted by digital-first competitors.
- FinTech companies (both public and private) are disrupting every single one of the revenue channels at the banks.
- There isn't a single reason to own bank stocks other than the dividends however I’d argue if their businesses decline as much as I think they will those dividends might not be safe.
- There are better industries to find dividends where the companies are growing earnings and increasing their dividends. Personally I don’t see any of the banks increasing their earnings for a long time especially if these VC backed FinTech companies continue to crush them.
- If you want exposure to the financial industry I’d suggest going with the digital payment companies: $V $MA $PYPL $SQ

What are your thoughts re: only focus on fintech and digital payment companies in your portfolio?
I note that your top pick for banks in your income portfolio is BNS.TO, which you constantly recommend as it appears "undervalued", however BNS.TO has made 0% capital appreciation over 5 years. Is it time to switch to fintech?

Q: i have noticed that 5i prefers JPMorgan as an American bank. I read recently that Warren Buffett has bought more of an already large component, of Bank of America., while selling other banks, like Wells Fargo. i imagine you can't go wrong on either of these two banks, but it would be interesting to know why you would prefer JPM over bac, and since you like to look at the other side of the trade, why Buffer would seem to prefer bac.
thanks as always for the great service