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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: In February, I was adding to my fixed income and believing that interest rates would not go any lower, purchased ZFH. It, like so many other holdings, has been hammered. It now looks to me that rates probably are not going up, for an extended time. If that is correct, is there any chance that ZFH will recover when the market calms down and equity prices begin to improve? Thanks for your excellent service.
Read Answer Asked by Leonard on March 12, 2020
Q: Hi, the big us banks have all come down significantly lately and some hitting multi years lows. What is your opinion about the situation and would it be a buying opportunity ? Can you explain why they fell down so much. I know that Warren Buffet loves them a lot for many decades. Which one is your number one pick ? Thanks
Read Answer Asked by jean on March 09, 2020
Q: Hi Peter, Ryan, and Team,

Motive Financial, a division of Canadian Western Bank, is currently paying 2.8% on their high-interest savings account. In this lower interest environment, I'm wondering how the smaller operators can 'afford' this. Your insight is always appreciated.
Read Answer Asked by Jerry on March 06, 2020
Q: Hi,

I have parked some cash in PSA (CAD) and MINT (USD) for short term until market and economy stabilizes. PSA invests into cash or high interest savings accounts of National, Scotia, CIBC banks. MINT invests into short term high quality corporate investment grade bonds. How safe are this ETfs if interest rates keep dropping and a severe global economic downturn or collapse of Financial markets. How much can the price drop be considering they are yielding close to 2%

Thanks
Ninad
Read Answer Asked by Ninad on March 06, 2020
Q: I am a long time subscriber and an avid reader of the Q&A. Even with all I have learned, I am still having a difficult time understanding how to invest the fixed income portion of my portfolio. I want fixed income to provide portfolio stability by protecting on the downside while offering the possibility of capital gains along with some income.

I am a buy and hold investor on the equity side and I am comfortable deciding when to sell a company. However, the fixed income side seems to demand a more active approach - or does it? For example, you have been suggesting that interest rates seem likely to decline in the coming months so that would favour long term bonds. But for stability, or as an offset in case I am wrong, should I also hold short term notes? Should my fixed income portion be split 1/3, 1/3, 1/3 among cash, short term and long term and just left at that or is it necessary to continually monitor and adjust these weightings? Or is there one fund that does all that already?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on March 02, 2020
Q: I purchased these when issued at $115. In a way, CSU used the high issue price to pay the first 3 years of interest payments. I purchased these as part of my bond portion, and had intended to keep this until my end.

For CSU, this interest must be expensive. Given that they released the debentures at a 15% premium, would calling it back be viewed as bad faith?
There is some capital appreciation, should I capture this and flip into a bond etf?
Read Answer Asked by Richard on February 24, 2020
Q: Goodmorning 5i,
You recently recommended shv for a reader seeking to place short term money. I have owned tlt and have found it a bit volatile for my safe money. Although, if this is not too contradictory, i plan to buy it back after the virus scare finishes. But, i was wondering whether in the US, whether you might suggest something between these two, that is, something with a higher return than shv but not as volatile as tlt?
Thanks
Read Answer Asked by joseph on February 20, 2020
Q: Ok now i am 70 i feel myself being dragged kicking and screaming into more fixed income. My 5% exposure to fixed (money loosing) income over the last 10 years has made for a wonderful ride with equities but please recommend your favorite international ETF.
Read Answer Asked by GRAHAM on February 20, 2020
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