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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: As North American jurisdictions begin, finally, to transition to halfway-decent testing regimes, will investors begin to discount the economic cost of social distancing? Yes, the pandemic will continue to grow, and yes, there seems to be excessive optimism in the market's response to government interventions, but are we now past the point where events or results could cause investors to panic as they did last week? I've been trying not to buy into what smells like a bear market rally but now I wonder if the cost of recession has already been baked-in.
Read Answer Asked by John on March 26, 2020
Q: Is it possible to buy stock in a TFSA without any cash in the portfolio ? Buy stock X and then sell stock Y to cover ?
Read Answer Asked by Mark on March 26, 2020
Q: One of my holdings of call options represents all of the contracts at the same strike price, expiry, etc., shown as open interest. It's easily understandable how there can be an offer to buy displayed, but how is
the price for an offer to sell (which is also shown) determined since
there is no sell order from me outstanding?
Thank you in advance.
Read Answer Asked by Howard on March 24, 2020
Q: I have a diversified US dollar portfolio, hold US stocks, and with the increasing in the US$, I have a 40% FX gain. I want to continue to hold the US stocks but also lock in the FX gain. To lock it in, I take it that a hedge would be required. Please suggest ways I could do this, including the "instruments". I am asking you this because I assume it is a good idea, aka action to take.
With the COVID-19 related decline in the stock market, I now clearly understanding the reasons and impact of diversifying in other currencies other than just Canadian $s...thanks for hammer it home to me.......Tom
Read Answer Asked by Tom on March 24, 2020
Q: Do you think we've seen the bottom now that the USA is close to a stimulus deal (as of writing today). I was wondering whether that stimulus announcement will be the last bit of good news for awhile. I'm trying to decide whether to wait for further lows which seems to be what everyone was calling for or whether to go in with a part position now. Your thoughts today on the stimulus deal and what may be to come would be appreciated. Thank you.
Read Answer Asked by Jason on March 24, 2020
Q: Hi 5iResearch team,
Would you please shed some lights on why utility stocks (aqn, bb.un, telus, fortis, etc.) are getting hammered.
Cheers,
Read Answer Asked by Harry on March 24, 2020
Q: A few questions have been asked about covered call products and I know that the bounce back will not be as high as a Plain Vanilla ETF. The question remains how much are you actually losing out on? Would the fund just not repurchase right away when called out so when things normalize, you may be out 5 to 10 percent as a guess? I am just hoping that the loss is not that bad
Read Answer Asked by Bradley on March 24, 2020
Q: Hi Guys,
I wouldn't pretend to understand economics and I can hardly read a company financial statement, that's why I subscribe to your service for advice on that sort of stuff. My question is not stock specific but general in nature about all the money governments are throwing at the current problem. Aren't Canada and the US both carrying huge national debts and yearly budget deficits? Where does all the billions of dollars both countries are throwing at the current situation come from? I'm sure there's no pile of money somewhere that they are drawing from unless it's in China. Can you explain this to me in layman's terms. Is it as simple as printing more money?
Regards,
Charlie
Read Answer Asked by Charlie on March 24, 2020
Q: On March 9th a special report was shared with 5i opinions on ten potential stocks to consider in the near future. That seems like eons ago considering all that has transpired. Would the advice on these stock picks remain the same today or would there be changes made with the selections? Thanks Dennis
Read Answer Asked by Dennis on March 24, 2020
Q: Assuming a youngish investor with a high risk tolerance and no cash flow/liquidity concerns, would it make sense to consider dipping into some "reserve" ammunition now and over the next few months in the form of LOC's/margin? Thinking being, from these levels, over the next 5 years imaging a 7% total return seems highly probable. With credit available below that rate, along with the ability to deduct the interest expenses, profitability seems likely. If this is a tactic you could even begin to condone, would you have any guidance such as a maximum amount of credit compared to invested capital to deploy? Also, assuming HELOC is not an option, any tips on finding the best rates and sources of credit?
Read Answer Asked by Andrew on March 24, 2020
Q: Hello,

I’ve been reading a lot on P/E ratios after your special report. From what I can gather once a company share is priced at 12 or lower P/E that typically this is a good buy for a long term hold. Is this typically accurate in your opinion?

Also, can you provide a site, which we would have access to, that provides the most accurate/up-to-date P/E ratios.

TIA
Read Answer Asked by Gerald on March 23, 2020
Q: Can you suggest any place where I can monitor for canadian companies suspending or reducing their dividends? Thanks very much.
Read Answer Asked by bill on March 23, 2020
Q: I am a 73 man relying largely on my RRSP for income and it is being eroded very quickly. I have no bonds or other fixed income investments preferring instead preferably dividend paying equity’s. know little about bonds and other fixed income products and would appreciate any advice you have on specific investments I should consider.

Thank you as always for your advice.

Don
Read Answer Asked by Donald on March 23, 2020
Q: Hi 5i,

We own NVDA in our RRSP on the USD side and want to increase our stake by 2%. We would then have a 4% position. We are contemplating the benefits to sell this position on the US side of our RRSP and buy it in our TFSA (now that we have room) or purchase it in CDN funds to benefit if the CDN dollar drops.

Do you have any recommendations?

Debbie and Jerry
Read Answer Asked by Jerry on March 23, 2020
Q: Hi team - I was hoping to get your general thoughts on leveraging during this time of turmoil. Some of the Cdn banks are throwing off significant yields, CIBC for example 8.09% at the time of writing. I can't find any info on when they last cut their dividends even during the 2008 crisis. I'm considering using my HELOC at 3.45% (interest payment s only) and buying one of the banks and collecting the difference between the yield and interest charges. As well, writing off the interest payments next year as carrying charges in a non registered account and thinking the stock will grow in value over the next year or so. Is this a sound strategy or should I shake my head, your thoughts? Thanks.
Read Answer Asked by William on March 23, 2020
Q: Good afternoon,
With the US$ significantly spiking up of late due to extreme market volatility, would it make sense at this time to journal US stocks such as AQN, BAM.A, etc back to the TSX Cdn exchange? This may well be a short term trade if and when the US$ drops back to more reasonable levels. As usual your thoughts and comment would be most appreciated. Thank you.
Francesco
Read Answer Asked by Francesco on March 23, 2020
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