Investment Q&A

Q: Growth stocks have outperformed value stocks for a number of years. My understanding is that growth stocks are currently at an all time high relative to value stocks. Presumably, at some point, this trend will reverse and value stocks will begin to outperform growth stocks.

Do you have any thoughts as to how much longer the growth outperformance will continue? What conditions should an investor watch for, to be able to detect the switch when it occurs, to outperformance by value stocks?

Many thanks for your insightful advice.

Q: Regarding Paul's question on software to help with decumulation of assets, Cascades Financial Solutions purports to offer a cloud based Canadian product, although it does appear to be aimed at advisors.

Q: Hi 5i,

I have another question on TSLA. Do equity investor analysts look at future potential earnings when evaluating a company ? TSLA has over 1 million cars on the road (and more every day). I believe the majority have not purchased Full Self Driving, which is an additional $10,500 option ($cdn). If and when it is released, if a significant number, lets just say 10% of the current owners purchase FDS, the revenue to Tesla is VERY significant. Thanks for your thoughts on this.

Q: I have been following the cirque du soleil story in the news.
I was surprised to see how much say the existing shareholders seem to have in the restructuring process. I thought the lenders were always in the driver seat in case of insolvency. Can you please provide your comments and clarify what s going on there. I understand it is not a public company. I just find the topic interesting. Thank you!

Q: Please advise of the risk in buying otc/pink sheet stocks. Thanks, Bill

Q: On the payment of Dividends. I have a TFSA trading account with a Canadian bank. The information they provide includes the dividend rate and if the dividend is paid monthly, quarterly or annually. All the companies except one in which I hold shares either pay their dividend according to the info provided by the bank and I get a notice from the companies if the dividend will be paid or altered in any way. The one exception apparently has a boardroom meeting once a quarter, decides which of their papers will be paid a dividend that quarter or not. It is hard to tell from their press release if the common shares which I hold will get paid a dividend that quarter or not. In the 4 yrs I have held this company there were 2 years of zero dividends and 2 years of payments every other quarter. I spoke with my banks rep on the matter advising the info they provide on this company is misleading - they do not really pay a quarterly dividend, in fact they just decide quartertly if they want to or not. The bank rep informed me that the onus to do research on the company was on the purchasers of the shares. The company in question is in Greece, which makes it difficult to research, plus if that company had a known history of skipping dividend payments for years, that that should be something material for the bank to include in their Company stock info. Where would you come down on the issue of what is material info to invite potential buyer of dividend paying equities.

Q: Peter,

Do you or any members know of reputable firms that sell financial planning software for the individual user? This would involve when to draw down RRIF, when to start CPP, clawback of OAS etc.

Thank you

Paul

Q: Hi 5i, David's Tea filed for CCAA and Chapter 11. Seems thier plan is to wiggle out of their lease commitments and emerge from creditor protection focused mostly online and wholesale distribution while maybe keeping a few stores. How does this work for the common equity holders? They have cash and may have a good business going forward but I would have thought the current equity holders would get wiped out in a restructuring. But the stock still trades around the same price as when they announced the restructuring early last week. Who would be buying this stock and why, what scenario would they be banking on?
Thanks
Rob

Q: How come Blackberry is listed in the tsx 60 but Shopify is not?

Q: Hi 5i team,

You kindly answered a recent question of mine re: minimizing risk of U.S. estate taxes (I am high net worth investor). I posed the question of emerging markets exposure, and asked you to compare VWO (U.S. situs) versus ZEM (Canadian situs); and you recommended ZEM for avoiding U.S. situs investment. My follow-up question has to do with making a comparison between VEE (the Vanguard Canada emerging markets fund) and ZEM. My understanding is that all ETFs registered to Vanguard Canada (such as VEE) are considered "Canadian situs" investments, even though they hold investments outside of Canada. So here are my two questions:
1. In a comparison between ZEM and VEE, would you recommend one over the other (the goal is Canadian situs investment within my RSP for long-term emerging markets exposure, at least 5 to 10 years).
2. In general, how can one most easily determine whether a security-- whether ETF or individual stock--is Canadian or U.S. situs investment (for estate planning purposes)?

Ted

Q: RE Earlier question re timing of receipt FLTR shares.
My itrade rep said the same -almost word for word.

Q: dsg filed for something called a shelf today what is that.thanks

Q: I'm interested in learning about technical analysis. What resources would you recommend?

Q: Good Afternoon
Some brokers, when recommending a security, they properly disclose whether they have managed a public offering of the security or whether they have received compensation for investment banking services. Thus, the investor is in a better position to assess the recommendation of the broker.

My question is about Morningstar. Do they provide any type of services for the companies recommended in their portfolios ?
Thanks again for your insight.

Q: Can you provide your opinion on inflation linked bonds and what role (if any) they should play in diversifying a long term portfolio. What is your preferred ETF for this? Are they redundant if you have gold?

Q: I have seen many questions about TRI with deposit receipts. Are there two classes one with a receipt and one without? What are the parameters of these receipts? Do the receipts trade separately?

Thanks

Q: Hi 5i team,
Congrats on the recent upgrade to Portfolio Analytics. It seems to be a big hit. I would consider it myself but over the past several years, I have moved 75% of my equity holdings to the U.S. (in RRSP, TFSA and non-registered), which has vastly outperformed my Canadian holdings. PA would tell me to come back to Canada which I don’t want to do. I don’t follow the conventional portfolio rules. In fact, I am considering moving all my remaining fund to the U.S. markets. Other than the currency risk if the CDN $ appreciates on a sustained basis (which I doubt), do you see any other pitfalls with this strategy?
Thanks again for your insight.
Happy belated Canada Day from my 25% position.
Dave

Q: if I want to received dividend in US , will it be advisable to buy co. like Enb. in U$., or other dual listing companies, like RY,TD. or will it be better to simply buy equivalent US listed Co. instead. Thank you as always.

Q: There has been recent insider transactions
Please explain
70 - Acquisition or disposition (writing) of third party derivative

https://www.canadianinsider.com/company-insider-filings?ticker=NEO

Q: I have been using TSE to track my portfolio.
Recently they made changes not to my liking.
Can you recommend one or more available sites to track a portfolio.
Thanks