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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: Everyone, if you could change one think about the investment industry, what would it be and why? Clayton
Read Answer Asked by Clayton on January 22, 2025
Q: Everyone, what has been the biggest / best change in the financial investment industry when you started (Peter)? Clayton
Read Answer Asked by Clayton on January 22, 2025
Q: Everyone, how often should I pay attention to the VIX? I am a buy and hold investor. Clayton
Read Answer Asked by Clayton on January 18, 2025
Q: A recent analysis from Queen's University points out that consumers could see the prices of goods and services drop by up to 14.5% if free trade between the provinces were to be achieved. Which Canadian companies would benefit the most from elimination of interprovincial trade barriers?
Read Answer Asked by James on January 17, 2025
Q: Everyone, what surprises you the most about price targets and ratings? Clayton
Read Answer Asked by Clayton on January 17, 2025
Q: Greetings in terms of determining whether we are paid to take risk or paying to take risk, should we compare say a 10 yr GOC bond (risk free) to the dividend yield paid by the market or its earnings yield. OR, are there better mechanisms?

Thank you
Read Answer Asked by Bevan on January 15, 2025
Q: As a general rule of thumb would you let a holding exceed 6% of total portfolio value even if the stock is running well?If the answer is yes what would be the max percentage you would be comfortable with?
Read Answer Asked by John on January 14, 2025
Q: Hi I was hoping you could clarify an answer you provided on January 7th about NVDA and trimming below 10%. In past, you have said “ let winners run.”

I’m torn with which approach to take as it seems contradicting. I do hold a very large position in NVDA (exceeding 10%) and need some clarity. Thanks so much.
Read Answer Asked by Nick on January 08, 2025
Q: I am planning to deploy the $7000 in the TFSA sometime next week. The TFSA is growth focused and for a long term hold (5-10+ years).

These are the 3 names I am thinking of adding to:
CSU - today's price is $4400 ish
BN - today's price is $82 - $83 ish.
NVDA - today's price is $144 USD ish.

Due to CSU's high price tag, I can only add to 2 of the 3 names. Which 2 names would you add to, at today's prices?
Read Answer Asked by Anh on January 07, 2025
Q: I have a question regarding bought deals.....is it wrong to think of them as setting a 'floor' on stock prices in the short term with the reason being that if some organisation bought a large multi-million position in the company at a discounted price (usually vs the current market price) that it would mean that they value the company at least the purchase price of the stock but would most likely believe it has room to grow.

Therefore, you could see this is a potential short-term ceiling on the price of the shares and that 'value' is seen by others at this price? I also realise it may take away some of the demand for the stock as the 'news' settles but I'm curious what I can learn from reading the 'bought deal' news announcements.

Am I missing anything and what 'insight' can you read into a bought deal?

Happy new year and thanks for your help as always!
Read Answer Asked by Cathy on January 06, 2025
Q: While reviewing the purchasing/selling by insiders I noted some transactions as derivative buy or sale by BCE. The type of securities were identified also as "equity swap-long position".
Can you please clarify what the terms "derivative buy" and "equity swap" mean ?
Thank you
Read Answer Asked by Terry on January 03, 2025
Q: hi,
the TSX 10 years ago (jan 2014 ) was around 14,673. using the current price as I write ( 24,817 ) gives an annual rate of return based on these numbers is less than 3.5%! I assume that the dividends are not included in the numbers I provided ( from globe investor chart )? is this correct? do you have numbers for the average TSX dividend yield over the last 10 years? this compares with ( using same "method" as above with TSX ) with the S&P500 doing approximately 11.7% annual return over the last 10 years ( again, not sure if this includes the average dividend yield of the S&P500 in the numbers?). a snapshot in time of course, but illustrating the gross underperformance of the TSX in comparison the US markets ( nothing new here ). can you provide current valuation data/analyses for the TSX and S&P500 and comparisons to historic valuations please. Can you please include valuation methods of the "Fed-model" (and CDN equivalent), Ben Graham, Buffet, Schiller and other "big names" one might use please...
all the best
Chris
Read Answer Asked by chris on January 02, 2025