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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: For simplicity, the following list of stocks are close to equal weight in my RRSP portfolio. I want to add another full position of one stock. I am thinking of CM for dividend or TMR for gold exposure or another suggestion you may have. I included my TFSA holdings so that you can see all of my equities.
RRSP
Energy-ENF/RRX/WCP
IT-ESL/SYZ
Industrials-EIF/MAL/RBA/SIS/WSP
Utilities-BEP.UN/EMA
Consumer-MG/NFI
Financials-BNS/SLF
Health Care-SIA
Telecos-BCE/T
Materials-CHE.UN/SJ
Realestate-BPY.UN

TFSA
ADW.A/CCL.B/CSH.UN/DSG/ECI/GUD/IPL/PUR

Thanks and have a good weekend.
Read Answer Asked by Roy on September 23, 2016
Q: In this morning's Globe FN is touted as being a future "dividend aristocrat".

The article went on to state: "It is dominant among mortgage brokers, of which about one-third of Canadians seeking mortgages utilize. The company has close to a 20-per-cent market share there.

First National has shown good capital gains and strong dividend growth. “The company has been a solid, under-the-radar executor of a simple business strategy: become the most trusted and efficient operator in the mortgage broker channel.”
Would you agree with these comments?
Do you consider FN to be a "buy" at this time?
Read Answer Asked by shirley on September 22, 2016
Q: Hi there, as a follow up to your response regarding SCB, would today's news regarding CXI license also be positive for SCB? Maybe that's why SCB has been moving up as of late, as pending license's are going to be approved finally! Reading between the lines, people in the know may be positioning themselves! Your take would be greatly appreciated. Thanks!
Read Answer Asked by Hussein on September 20, 2016
Q: Hello Peter,
I was not able to find the symbol XLF (the US financial sector ETF) on your site so am hoping you can assist. The ETF contains Brk.B, BAC, etc Today, the index fell more than 15% and the news appears to be related to the following:
"Effective on the date of index reconstitution, the Financial Select Sector Index will include securities of companies from the following industries: diversified financial services, insurance, banks, capital markets, consumer finance, thrifts and mortgage finance, and mortgage real estate investment trusts (REITs). The Real Estate Select Sector Index includes real estate management, development and REITs, with the exception of mortgage REITs". If this is true, I am assuming the company that creates the ETF wants to make it more diversified. If so, why would the index fall so much? Is it because investors wanted a concentrated ETF as opposed to the diversified one. From my understanding the XLF before today is similar to the XFN for Cdn Banks and insurance. Thanks very much.
Read Answer Asked by umedali on September 19, 2016
Q: What are your thoughts on the insurance companies in Canada versus US in general. Interest rates seem to affect the performance of the insurers and with the US on track for at least some small increase in rates in the not too far off future, I wondering if switching from Manulife (my current holding) to a US insurer (Aflac perhaps) in a registered account makes sense.
Read Answer Asked by Todd on September 15, 2016
Q: Hi 5i Research team, I have a long term horizon, and I am a patient and more of a growth oriented investor profile. As interest rates are very low (they have been for a while, I agree), if, instead of investing in REITs, banks, fund managers and insurance companies to obtain my financial sector exposure, I invest in a combination of other "financials" such as AIF, CXI, TCN, TNC, HCG, DH, what would I be missing? What exposures? What additional risks would I incur? Do you have other quality suggestions to complement this short list of other financial stocks? With such a group, are your main large cap recommendations in this sector (BNS, SLF) still necessary? Thank you, Eric
Read Answer Asked by Eric on September 12, 2016
Q: HCG is now down over 50% in my TFSA. I keep telling myself, "don't think about what it WAS worth, think about what it is," but my emotions keep getting in the way of my thinking. Given HCG's current prospects, is this a reasonable place for a senior to leave a now much smaller portion of her portfolio, or should I just take my losses and look for a less volatile stock? ( It seems volatile to me, but perhaps that's those emotions again) Many thanks
Read Answer Asked by M.S. on September 12, 2016
Q: I was wondering if your response to Eugene this morning regarding CI Financial would also apply verbatim to FSZ? I work in the financial services industry and I share your concerns for growth in these companies. The dividend is great and I assume reasonable secure but do you hold much hope of the stock price ever rising? The share price is about where is was 2 years ago.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on September 08, 2016
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