Investment Q&A

Q: Just a comment based on Darcy’s question on March 7.

While anyone who is invested in stocks based on the balanced equity portfolio, which I suspect is plenty, my own experience is to recommend patience.

Remember when GC was recommenced and then shortly thereafter the news came out about the money laundering. Stock tanks and the natural reaction was panick. Thanks to 5I I held firm and am looking at 60% gain.

I buy the dips, and for the most part, am very pleased, with the BEP.

Thanks team!

Q: Good Morning
Pat McKeough's TS1 Network issues and sells a number of investment letters such as "The Successful Investor". Which one would you recommend for a conservative dividend investor?
Thanks

Q: When answering Scott's question about the lightspeed IPO you said Shopify is 10X sales. On the 5i's website under companies it says SHOP is 55X sales and on Yahoo finance it says 25X sales on the TSX and 19X in the US.

Can you tell me where these discrepancies come from? It makes it difficult to compare companies. Is it best just to do the math yourself?

Thanks.

Q: Should I sell now or wait for takeover is there much of a difference

Q: Reading through 5i answers to questions regarding Cdn. coys that pay dividends in USD made me wonder if there is a way to increase my cash holdings in my USD account without incurring FX charges and being eligible for the foreign tax credit.

I currently have AQN and HOT.UN in my TFSA that pay dividends in USD that are converted to CDN$ with the extra wrinkle of HOT deducting withholding taxes that are not eligible for the foreign tax credit because it is held in TFSA. Also hold BAM.A and BEP.UN and BIP.UN in Cdn. cash trading account that also pay dividends and interest in USD$ and are converted to CDN$ when paid.

Can I as owner 1) TRANSFER my AQN (up about 150%) and HOT.UN (down 25%) shares this year from my TFSA to my USD cash trading account to get dividends/interest in USD and 2) do the same with BAM, BEP and BIP from Cdn. cash trading account to USD cash account to capture and keep the USD payments and avoid FX conversion fees and build my USD cash reserves in USD cash account without incurring any fees and charges from my online broker? Or do brokers and CRA have rules against clients benefiting from structuring dividend/interest transactions in a manner like this?

Obviously this would open up SOME space for extra contributions to my TFSA in early 2020 above and beyond the TFS $6000 contribution limit to provide for increased flexibility for sector rebalancing and re-allocation opportunities. Also this would make the USA withholding tax payment on the HOT.UN dividends eligible for the foreign tax credit when filing my tax return to CRA?

Comments?

Q: My question revolves around Peter's webinar and the thought we should know when to sell our losers. I bought the above just before the decline last year. All outpaced (negatively)the market decline considerably. During the recent market rally 2 have not participated with the market, the others have basically market performed. Leaving the value at this point -23%. There have been some misses in the last reports for these companies. As an investor what am I looking for now to continue to hold these positions or be a seller.
Thank you,
Mike

Q: For the last eight years my portfolio has been almost exclusively US large capilization stocks. My rate of return has been great, significantly above the averages. I do not intend to change my portfolio away from the US markets for the foreseeable future. Am I making a mistake?
Clayton

Q: What is a better investment in the long term - real estate (as a hard asset) or the S&P 500?

Q: This is a question that could apply to the above companies based on recent results but many others throughout a year. When a company you guys like misses earnings but has a reasonable explanation and the release/conf call doesn't turn up anything wild to be concerned about does it ever not make sense to buy or top up when the market overreacts? GC yesterday was another great example. Your thoughts please on when you would and would not be active buyers following a miss by a company you consider to be of high quality.

Q: I have considerable taxable gains that will be realized this year. I will earn less than 20k in self employment income this year (semi-retired). I am considering buying 3000 shares of STLC before the special dividend recognizing the share price will drop after ex-dividend. I will sell the shares shortly after ex-dividend date. I will receive $3690 in dividends and have a similar capital loss (which I will use to reduce my capital gains). Do you consider this a tax efficient strategy? Am I missing something? Thanks for your advice. Rob

Q: I often read the expression "Markets Wrap". What does this mean?

Many thanks, Peter

Q: In 2018, Metro bought Jean Coutu. I would have preferred to convert a part of my PJc shares into Metro shares in order to defer the capital gain as long as possible. However, I have never received the document offering this choice from Disnat.
I contacted Disnat and the customer service told me that the document with which we had to sign our choice had been sent. I then consulted 2 colleagues who use the Disnat platform and they also confirm that they did not receive this document. The tax bill is important.
Are there any recourse or action to take?
Thank you

Q: Hi, are you aware of a source that reports earnings surprises on Canadian stocks? Thanks.

Q: Would you please discuss "take your profits" and "let them run." What's the rule for using either? Many thanks for your advice.

Q: i want to buy BAM, but i keep nipping at stocks at their highs lately with less than cheerful results ( think SQ at it's high, though i still hold it and feel it will make it's way above it's previous high) . I recognize BAM is a very different kettle of fish. As the market is currently shy about moving upwards, do i wait for BAM to pull back?
Also I am planning to take the funds from BNS. Do I wait for it to a show a more positive move, or go now?
I look forward to any direction or guidance you can provide.

Appreciatively,
Mark

Q: Follow up to my previous question re---- pre-arranged market close orders. This seems to happen very often and in very large amounts. Can you explain why they do this? IE--- how does this action affect their performance? Is it managed personally or by a computer model? What is the average size per trade?

Q: Hi,
I would like to read more or get some information on how to
establish strategies to minimize my tax burden and
optimize the disbursement of my investments. Any suggestions on where to start?

Q: Been looking for a reliable accurate system/app or software to accurately calculate a portfolio rate of return - is there any options that you know of and could recommend??
THX
Ralph N.......

Q: Hi Peter,
I really enjoyed your appearance recently on BNN. I like the fact that you appear without notes, printouts, “model” prices or table-pounding buys, unlike some of the other guys.

I read your FP article on the weekend on asset and sector allocation. I agree 100% with getting the sector right - just look at commodities over the past many years. It is the larger asset allocation question (stocks vs. bonds) that puzzles me. For me, I am an equity guy and typically run 90-100% equities for better long run returns. Any remainder is cash looking for new opportunities.

I have never in my life bought a bond (or bond ETF), unless you count CSBs 40 years ago when they were at 12% plus; rates we will never see again in our lifetimes. I understand bonds for reducing volatility in your portfolio. Last fall showed the volatility of an all equity portfolio. Yet today, we are making a nice recovery. My question is if or how do bonds enhance your returns?

In Warren Buffett’s recent interview on CNBC, he said that given a choice of holding a 10 year government bond versus holding the S&P 500 for 10 years, he would buy the S&P in a second. He said the same thing for a 30 year comparison. I just can’t get comfortable with the idea of holding bonds to enhance your returns. If the primary advantage of bonds is to reduce the volatility of your portfolio, then I am fine without bonds.

Thanks again for your insight.
Dave

Q: Hello 5i,
It is now into March 2019. Will the new personal portfolio review option soon be available?
Thank you
Oh, will there be a "Women In Finance" lingerie issue of "Canadian Money Saver"?
Stanley