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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 finance or investing media there is often reference to portfolio insurance. I did not know such a thing even existed. The discussion often makes a passing reference to “... buy the VIX.... “ If this is correct, how would one do that? If insurance--- I assume that means mitigating risk--- is unrelated to VIX , is portfolio insurance even buy-able (OTHER than by use of options)? If options are the only way to mitigate risk, do you know some reliable sources one can go to? If I am going to pull my hair out worrying about “toppy markets” (a favorite phrase of some market commentators) I would like to be able honestly to claim I did make best efforts before the said hair-pulling.
Read Answer Asked by Adam on January 29, 2020
Q: A few years ago, I had some losses on several semiconductor companies, foundries and equipment suppliers to the industry. Since then I have more than made up. I VAGUELY recall a financial analyst saying one should not buy chip companies when they have low P/E.... that one should only buy when they look expensive. Does this heuristic make sense to you ? If yes , does the suggestion apply to all cyclicals or just some sectors?
BUT how does one actually apply the ‘rule’ , in other words:
What specific ratios should one use, including inter alia :
Trailing P/E
Forward P/E
PEG
It seems counter-intuitive and migraine-provoking to *intentionally* buy expensive and later intentionally to sell cheap.
I am interested in YOUR thoughts.
Read Answer Asked by Adam on January 29, 2020
Q: I look at the company profiles you provide (among other things) before purchasing a stock. I sort of like a stock with a low PB ratio. It worries me when I look further and see a low price to tangible book value. I'm not totally sure what it means to have a negative price to tangible book. No real underlying value compared to the value of a bunch of good will or patents? I'm ok paying for patents (I think) but I am less happy paying for good will as I think that is just management paying too much for an acquisition. Is there anyway to distinguish the provenance of the intangible assets? How do you view the intangible value stats? Does this even come into your review of a company? Or do you just consider intangibles "good" if the company performance by other metrics is "good". Could you please recap when price to tangible book value is a stat that is worth considering. It causes me worry sometimes and I hesitate on purchases to my detriment.
Thank you for your excellent service.
Read Answer Asked by Brian on January 29, 2020
Q: Is there a way to hold the S&P index in an ADR or some other instrument that would turn the investment into a Canadian capital gain. (maybe I am just wishing) Could you explain how an ADR works. Thank you for your valuable assistance.
mike
Read Answer Asked by Mike on January 28, 2020
Q: Comment on Kevin's question about the minimum withdrawal from a USD RIF. I don't know the answer but I believe they would use the FX on Dec. 31/Jan. 1 and not on the date of withdrawal. That would set the amount for the year and most brokerages will have a spot on your account page where they tell you that amount for the year. My withdrawal amounts show up automatically on Jan. 2.
Read Answer Asked by Earl on January 28, 2020
Q: I am concerned about the concentration of FAANG stocks in the S&P 500 index. My understanding is that the concentration of the top 10 holdings in the S&P is near historic highs.

Do you feel this is a real risk? Would you recommend switching from a market capitalization ETF (e.g. VFV) to an equal weight ETF (e.g. EQL)?

Your advice is most appreciated. Thank-you

Read Answer Asked by Dale on January 28, 2020
Q: Just a general comment on why there is no accountability(CEO,Board) for companies who fail miserably on managing the company never mind trying to add value for shareholders. Bombardier(Govt. handouts,mismanagment, etc). Thyssen Krupp same as above, Generel Electric??? - and most recently Boeing. Sure the CEO might get"Fired" with a multimillion dollar payout but why does the board always just get away with no repercussions as they ultimately allow the CEO to make the mistakes?
Read Answer Asked by Reg on January 28, 2020
Q: What are the implications of holding Canadian companies, e.g. banks, on US exchanges in registered & non-registered accounts?
Read Answer Asked by Joel on January 27, 2020
Q: Hello team: what are the advantages or disadvantages of purchasing Canadian Stocks listed on a USA Exchange-- using USA dollars? thank you for your time- jane
Read Answer Asked by jane on January 24, 2020
Q: I am a retired, conservative, dividend-income investor who is normally fully invested with a "buy-and-hold, but trim-add around core positions" strategy.
I currently have 2% in investable cash, with my portfolio set up exactly where I want it now...good asset allocation both via sectors and via individual position sizes.

However, I am also looking at the macro picture and things seem to be going parabolic. I am contemplating trimming to increase my cash position from 2% up to 5%. I understand in the past you have indicated that the key things to watch are interest rates are unemployment. They are both low, so "let it ride". So, what to do...let it ride vs trim? I know this amounts to market timing, which I know you are not fond of and, coincidentally, I am lousy at.

In your past life, as a fund manager, when did you raise or invest your available cash and what factors pushed you to do something or to just sit on your hands?

Thanks...sitting on my hands for now...Steve
Read Answer Asked by Stephen on January 23, 2020
Q: Like many CDN Investors, I am overweight Canada. Plan to reduce that in 2020. Looking at candidates I find some "Canadian" investments have the majority of their assets outside the country. Example: BGI.UN - only 20% of assets are in Canada, yet it pays quarterly $CDN income. Seems it would meet my objective. Please provide names of other CDN-based candidates that hold a lot of ex-Canada assets and derive much/most of their income from those. Looking for US/International diversity and some $CDN income. I hold some US Pharma stocks directly and a Vanguard S&P 500 Index ETF (10% of total portfolio). Thank you.
IslandJohn
Read Answer Asked by John on January 22, 2020
Q: Hi 5i,
I am just going to ask about your new U.S. disclosure policy when Sal asked first. So, I would just comment I have absolutely zero concerns about your staff’s potential investments in U.S. stocks and the integrity of your advice. The U.S. names are typically so big and liquid that 5i’s endorsement or not, in all due respect, would have absolutely no influence on the price movement of AAPL, AMZN, GOOG, ROKU or others. So, keep up the great work and the presence of these disclaimers, or not, on the U.S. names cause me absolutely no concerns.
Thanks again for your sage advice.
Dave
Read Answer Asked by Dave on January 22, 2020
Q: I have just opened a TFSA account in $US. Can you recommend an ETF or other place, to park tbe money, for a few months, while I figure out what stocks I want to buy? Thank you.
Read Answer Asked by Grant on January 22, 2020
Q: Just noticed a question from Michael about having some issues with Google Sheets function pulling quotes for BYD (Boyd Group Services).

I'm having issues too! It is not working for either BYD.UN or BYD. Just to confirm the formula to use is typically:
=GOOGLEFINANCE("exchange:tickersymbol") This is what should work, but is not currently working at the moment:
=GOOGLEFINANCE("TSE:BYD")
Read Answer Asked by Mike on January 22, 2020
Q: FYI: TD Waterhouse - This is what I get when I try to buy PSA or CSAV:

This order cannot be placed electronically. Please contact TD Direct Investing ... to place this order. [ 90211 ]
This symbol is not eligible for trading online. For assistance, please call TD Direct Investing. [ 44221 ]

Gotcha!
Read Answer Asked by Paul on January 21, 2020
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