Investment Q&A

Q: WHAT IS THE DIFFERENCE BETWEEN BOOK VALUE AND TANGIBLE BOOK VALUE

Q: Next Thursday, 11 companies (which I hold) are reporting their earnings either before market opens or after market closes. This is a record for me. Curious, what procedures do you or other 5i team members use to deal with even more companies reporting their earnings on the same day in a timely manner? Thank you.

Q: Question asked by Terry: "What was the price of Fnv and the price of gold at the end of 2011?" Canada Stock Channel will give compound earnings on $10,00.00 with and with out dividend back to 1995. Just enter the stock symbol and date range. https://www.canadastockchannel.com/compound-returns-calculator/

Q: What is expected next week from CSU and rather than bug 5i is there a good site to gather such information? Thx

Q: Further to the question related to the dividend cut for CDZ, is it safe to assume the cut is related to the associated dividend cuts from the underlying securities? And if that is true, then can we assume that once these securities reinstate their dividends, then the CDZ dividend will, in turn, rebound?

OR, is it a case whereby the ETF is periodically reconstituted and it is a fresh start for the underlying securities and we have to wait for the natural progression of dividend increases related to these "new" underlying securities? In this case how long does an individual security have to be "off-side" to be turfed from the ETF?

Thanks for helping me understand...Steve

Q: With Tesla hitting 4 quarters of profitability along with the other criteria, they are now eligible for consideration to be added into the S&P. I understand the S&P committee meets on a quarterly basis to rebalance the index, and the next meeting is scheduled for the third Friday in September. What is the time frame post the Sept meeting we can expect an announcement to be made that Tesla is to be added.

Q: Hi Peter, Ryan and Team,

From my readings about RESP, the maximum contribution per child is $50,000. What options are there once we reach that limit? Continue investing in an in-trust trading account ?

Thanks.

Q: There has been a lot of talk about inflation recently.
A lot of people will typically flock to gold, but if the currencies devalue, won't all assets appreciate in price, including real estate and stock? My question is - what is likely to appreciate faster: gold, real estate, or stocks?

Q: As electric cars gain traction do you see this having a benefit for utility stocks over the next 3 to 5 years? I'm thinking people will charge up their cars overnight increasing the demand load for the utilities. Possibly the utilities will need to upgrade their infrastructure so there might be up-grade costs. Possibly 3 to 5 years is too short a time for electric cars to have much of a presence. Utilities are regulated (I think) so all rate increases I suppose would need to be approved by regulatory government agencies which may baulk at any rate increases. Any thoughts you have would be appreciated.
Jim

Q: Modern Monetary Theory appears to be gaining increasing acceptance. If Western governments were to adopt this Theory, what do you believe the impact would be to investment portfolios? What investment classes do you believe would do well, and what investment classes would do poorly? Do you see this Theory as causing a change to portfolio allocations amongst investment classes?

Thank you for your wonderful and thoughtful insights.

Q: My question is about utilities but we could extend it to any enterprise - it really deals with governments not letting the (often painful) market forces of capitalism take over. I'm not some kind of anti-government fanatic but I know true (unfortunately painful-now) market forces are being and will be suppressed more by cash-strapped governments facing a popular backlash.

I've come across a story where the British government may turn to forcing regulated utilities to accept lower profitability and thus lower dividend payouts to help keep utility bills down for the consumer.

Utilities may argue they can't provide reliable services without higher rates but it seems any company delivering 4-8%+ dividends wouldn't get much sympathy from cash-starved governments in a sub 1% interest rate environment.

With rising political pressure from financially strapped consumers would governments view regulating profits of utilities, banks and others as a great way to boost their popularity?

Q: I'm short out of the money covered calls for August expiry for some of my shares in BEP.UN. Given the BEPC shares dividend, I expect the BEP.UN shares to drop after the July 24th expiry date but I'm a bit confused as to whether the BEPC shares will follow the option or remain with me after July 24th. In other words, will the option be priced for just the BEP.UN shares or the BEP.UN + BEPC shares after that date.
Thanks
Peter

Q: Can you tell me the different between BEP.UN and BEP.C ?
Thanks

Q: In each our TFSAs we have ZLB and CDZ plus cash. We understand that we should diversify our TFSA investments with a minimum of 5 different ETFs or mutual funds in each TFSA. Should we also consider having different investments in each TFSA?
Thank you Bradley Kempston

Q: Hi 5i team, I understand that you do not take target price seriously but what do you make of recent shopify case, ranging 1100 to 280. Is there any accountability for those analyst making such prediction? Thanks.

Q: Whenever there are these swings in the market from growth/tech to value/consumer it makes me think about diversification. I have also noticed that companies that bring tech to another field are thriving. Examples being SHOP bringing technology to consumers, REAL bringing it to consumers and real estate, VEEV bringing it to health care, etc.... Also the US markets just recategorized to decrease the amount of technology companies. I am presently 27% technology but only if I place REAL and AMZN in consumer, GOOG in communications , etc.

I own all the above listed companies except ROP. I am currently considering selling LSPD (technology or should just categorize it as consumer) to buy ROP (industrial or is it technology). This would bring technology to under 25% and increase Industrials and US exposure which I am underweight in. The problem is that I can’t help but think that I am making a trade just to make the diversification boxes all line up. One could easily consider ROP as technology.

In the medical profession we have a term for this. “Euboxic”. Which means making all the lab values line up to hope for the best but often with no real value added.

Q: Hello 5i,
This is not a question, but a request to your membership. I would like to encourage everyone to consider using the Forums to exchange ideas, ask questions, share information and to just generally "connect".
I believe 5i has done us a great service by being willing to host the Forums but it is up to us, the membership, to use it -and use it responsibly - to maximize the benefits to all of us. To paraphrase the current Pandemic mantra "We are all in this together" and the Forums could be a valuable additional tool to help us all navigate these uncertain times together.
So, please - consider helping make the Forums a more active, vibrant resource for all of us to enjoy and benefit from.
Thanks,
Cheers,
Mike

Q: I have heard comments from diverse sources that there will be a massive movement of investment from bonds into equities at some point. Would you comment on this topic as to what catalysts could cause such a move. Does 5I agree with the concept? Has such a shift happened in the past?

Thank You
Clarence

Q: A comment for Bill and Paul on decumulating assets. I have used Cascades Financial Solutions as an individual investor. I found it quite useful for weighing options by changing the data inputted. It produced detailed reports and I found the cost very reasonable. Thanks for all you do at 5i. Frank H.

Q: Large firms have outperformed small firms for a number of years. What conditions will need to occur for this trend to reverse, and for small firms to start outperforming large firms?

Many thanks for your insightful advice.