Investment Q&A

Q: Hi,
I was looking through past questions that you have answered on PTQ and note the following comment.
"It is a US company listed in Canada, which can raise some red flags..."
Could you explain what the red flags would be? Thanks.

Q: Once again I have to contemplate reducing my weight in SHOP as it is again at a 10% weight. (Okay I understand this is a good problem to have.) I reduced shop before a few months ago and I find myself regretting it. A couple of years ago I reduced my CSU weight by 75% at $700 in order to stick to a lower risk portfolio theme and have a proper weighting, and yes I really regret that (now that it basks in the $1,400 range). Both these stocks I have a really strong belief in, as I know you do. I guess my question is, should not balancing be tempered by the confidence in the stock? I mean one of the reasons I go diy is because I believe no advisor can take a big risk on my behalf in good conscience yet it might be one that I would be willing to take for myself, hence no advisor. As you say, any stock can go down 50% (in a day even), but really, CSU and SHOP? My total portfolio is otherwise pretty well diversified. Am I being completely reckless here by not divesting some of SHOP or do you think that this falls under your concept of one's personal preference realm? Again, thank you for all your help.

Q: Hello 5i,


I am wanting to move more into US and rest of world, as the analytics program directs me.
Due to a sale in my tfsa, i will have US dollars that i can then put in my non registered account. ( i will fill the tfsa once afain from that same non registered account). I was wondering what to buy with these US dollars, though. I dont want to lose too much of. The divident break we have for US stocks in the Rif, so i was looking for low or no dividend yield candidates. One problem encountered is that in my non Canadian portfolio, i am moving away from individual stocks and towards etf's. Harder to find low or no dividend payers.

VEA was one I was looking at.

In the 5i portfolio tracking and analysis it says that vea has a yield of 1.89, which although not ideal, maybe something we could live with. When i go on the bmo site, though, it seems to indicate a yield of 2.99, which is becoming less livable.

I imagine you are riht about the dividend. But, would like to be sure. Also, do you see the 1.89 yield as being too high for a non registered account? Thanks once again

Q: Further to my question re: a bought deal. I read i that the deal was for $ 92.50 a share US that is approx $123.00 Canadian. If shares were trading at a higher level prior to the deal - approx $126.00 - ( mind you they were around the bought deal price a week ago ) what is the "bought deal" part of issuing new shares?
I have read that term a few times and seen the stock prices for stock react wildly from the announcements - I am unsure what it mean or what the implications are.

Q: I was interested in Brookfield Asset Management CEO Bruce Flatt's comments during a BNN interview with Amanda Lang this week. Flatt said that "We are close to 11 years into this economic cycle. I don't think economic cycles have been repealed; there will be a recession." He added that Brookfield is more cautious today than it was in 2009 during the world financial crisis. His company is holding lots of cash and staying diversified to weather the downturn. With 5i's years of investment experience, I would appreciate your opinion on the risk of a recession and your recommendations for capital preservation of investment money if such a situation might occur. Thanks!

Q: Hi,

I have a question about timing the market. I know the old saying that its not about timing the market, but time in the market. However, 10-11 years into this bull market, how do you juggle wanting to invest in good quality names if you believe the market may slip into recession in the next 12-18 months? Should you keep a percentage of your portfolio in cash? What if the recession doesn't come for another 3-4 years?

Thanks,
Jason

Q: When I read/hear the phrase "GIC-like funds" what is being referred to? Can you provide a few examples if that phrase has meaning in the realm of investing?

Q: Another option for Paul aside from Sharesight is CanadaStockChannel.Com
On this one, you don’t have to register. If you use it repeatedly on the same day they will ask you to sign up, but you can come back another day and look up more stocks with no hassle.
Only tracks TSX stocks, and only based on $10k initial investment. It will compare returns with dividend reinvested and without, and will compare against various benchmarks.
Main reason I wanted to chime in though is just to urge everyone to do this exercise, whatever site you use, if you have not done so previously.
It is a real eye-opener to compare the longterm performance of different kinds of equities,, and seeing this should make some rethink their approach. A friend did this with me a long time ago (it was much harder then!) and I am very grateful today.
Good luck fellow investors.
John

Q: Questioned asked by Paul; "a website that will calculate the current value of stock investment whereby you enter the original investment amount at a specific date many years ( decades ) ago and it calculates the current value, also taking into account the reinvestment of all dividends."

Try Wealthica | Wealthscope - Income widget. NOTE: Requires subscription. https://app.wealthica.com/

Roy

Q: Questioned asked by Paul; "a website that will calculate the current value of stock investment whereby you enter the original investment amount at a specific date many years ( decades ) ago and it calculates the current value, also taking into account the reinvestment of all dividends. "
Try Sharesight. Up to ten holdings can be tracked for free.
https://www.sharesight.com/
Roy

Q: There is all this talk about a recession coming and sharp drop in the markets. I'm wondering what is the best way to respond to these events when they occur? If we look historically is there a trend that points to the best time to start buying after a big market drop? I'm just thinking when he market has dropped say 20% in a day due to an event, some may jump in instantly or the next day and invest their cash holdings, then the market may drop another 10% due to panic. Is it best to ride it out, but maybe miss the first post pullback pop, I believe you mentioned most bear markets last a year or 10 months roughly on average, so what point of that cycle was historically the best on average to get back in, 3 days, 3 months, etc? Thx

Q: Are you or any of the members aware of a website that will calculate the current value of stock investment whereby you enter the original investment amount at a specific date many years ( decades ) ago and it calculates the current value, also taking into account the reinvestment of all dividends. "Long run data" was my go to source but the site is no longer operable.

Thank you

Paul

Q: When would be the earliest time that MTLO could move to the TSX? What conditions does it have to meet to be able to do so? Thank you.

Q: Re your answer to Terence that he will not be able to claim his loss on LSPD because he bought them back in ANOTHER account within the 30 day period. The capital loss can be added to the Adjusted Cost Base of the new shares so that he eventually will get the benefit of the loss PROVIDED he bought the new shares in a taxable account. I have at times ignored the 30 day rule when it was beneficial to rebuy shares within the 30 days.

Q: Is there a report or a blog on Bonds regarding which Bond ETF will do better in different economy cycle ie interest rate up or down. Recession or in good economy.

Thanks for your great service

Q: This question relates to portfolio construction-please deduct as many points as necessary. My 89 year old mother is in good health, still drives and wants to continue to live in the family home as long as possible. Her mother lived to be 100. Her investments consists of a riff, unregistered self directed account, TFSA and cash. Her money will run out in 9 years.
Her investments are:
Riff-all cash and represents 65% of her total investments;
Unregistered account-25% . Consist of Zeb and zdv;
TFSA- 5 %- all cash;
Savings account-5 %- all cash.

Capital preservation is paramount but should it all be in cash?
Specifically could you comment on the following:
1) riff-should we move to a laddered GIC approach for the money she will need for 4 to 5 years and put the remainder in blue chip dividend stocks such as banks, pipelines, utilities?
2) keep the unregistered account as is. We would like to move some money over to her TFSA but this would create a taxable capital gain event. Comment?
3) invest TFSA in blue chip dividend stock -suggestion?
4) no change to saving account as this could be used for any unexpected house expense. Comment.
Also any other comments or thing to consider would be appreciated as there are not a lot of information out there regarding winding an account down.
As always, many thanks.

Q: Thank you for your response to my question 22 November. I am attempting to diversify my portfolio internationally and so I am looking for Canadian listed companies that have a significant part of their business outside of Canada. The four that you listed are very good candidates and I do own CCL.B, WSP and ATD.B. I was wondering if there is a way to find other companies with similar international characteristics. Thank you.

Q: Should the concern with scotia and south america make a person nervous about scotia iTrade account with 7 figures.

Q: I recently sold LSPD to crystalize a tax loss I sold it on Nov 22 for $29:72 presently its at $31 and change. I sold it after getting your opinion on tax loss selling. When I asked the question I was specific about LSPD and pointed out the risk of the stock increasing beyond the $4599 loss in the 30 day window. (always planned on buying it back. Anyway in the last 2 days the stock has gone up over 2 dollars (I had 800 shares so that approx. $1600) I am getting nervous about the stock rallying. Can I have your thoughts should I buy it back now before it takes off and goes back up to previous high of $49 ? or?

Q: Hi Guys,

Three Part Question:

1. Is there anywhere that summarizes current NCIB's outstanding for TSX companies? Or what is the best way to find this information? Surely there is a better way than diving into each companies latest earnings release?

2. Is there anywhere that summarizes current CEO/Executive Board Salaries and Stock Options / Share Issuance? Again, hopefully not having to dive into each company?

To tie these questions together -> If a company is engaging in an NCIB, but at the same time, granting huge stock options to it's CEO/CFO, is there a possibility for CEO/CFO's to game the system here? i.e. - CEO/CFO accumulates stock, then makes decision to buyback shares pushing price back up and CEO/CFO then sells at higher price?

Thanks,