Investment Q&A

Q: With the recent sell off, have any of the above stocks (contained in either the Income or Balanced Portfolios) reached the stage where you would call them "table-pounding buys"? In other words, has the market overreacted and the pendulum has swung too far?

Obviously, there is always the chance of a continued downdraft, but at some point you just step in top up your holdings.

The Income Portfolio is sitting on 10% cash...any thought to deploying some of it soon? Thanks...Steve

Q: In the current investment environment with the prospect of rising interest rates would you use stop loss orders or just hang in? Thanks, Bill

Q: It's getting ugly out there. Any general comments about what to do (esp. if you like the gains you've had and don't want to see them just relentlessly evaporate?). I realize I've answered my own question but am still interested in any comments that come to your mind.

Q: Good morning...moving forward what impact will the increasing bond yields and interest rates over the next 6 months....by order what industry categories are considered on a downward trend? Also, for the next 6 months what would you say are the 8 stocks in 5i portfolio's that you think will be (temporarily)harmed by the rising rates and yields over the next few months..
Thanks

Q: I've researched the cash ratio (as opposed to current or quick) for most if not all of 5i stocks and found lots of companies with a cash ratio > 1.00 (e.g. GUD, SHOP, PHO, WPK, PSI, GC, SYZ, AEM, KXS, COV, ET, PLC, HWO and ENG).

I can not find any cash ratio data for FFH, SLF, MRC, VB, BNS, FSV, TCN, FCR, ECN, GS or the REITS). Why? Excluding the REITS, do you have any cash ratio's for these companies? If not, can you estimate which ones you think has a cash ratio greater than 1.00.

Happy Thanksgiving

Q: hi Peter a little confused by the P/E ratios which you show on these companies profiles. if I use 2019 EPS estimates that you Kindly provided I get PBH p/e of 17.34 not 34.10 SIS p/e of 23.20 not 34.40. DOL p/e of 20.52 not 24.50 and TSGI p/e of 11.82 not 73.50. not sure what I am missing. thanks Richard

Q: Peter,

I am trying to come up with a range of debt to equity (ratio) that an investor should look at to determine relative safety of a stock. Do you have a specific ratio you consider acceptable or is it very industry and economic cycle specific? Do you trust the reported numbers you see in various on line publications or is it best to go to Sedar and figure it out oneself?

Thank you

Paul

Q: Happy Thanksgiving Peter and Team, with the change last week re: accessability to hedge funds for regular folk, are there any you would recommend ? Also, if one thought that we might be in for a medium - prolonged downturn would that affect your choice ?
Thanks, Paul

Q: Hello 5I.
I just was wondering how best to handle tax loss selling season? Do I wait till late november early december to buy some "losers" or do you strike when it falls into my range. I am just tentative as I don't want to buy way to early if a stock is probably going to drop further (best guess).. Dollarama for example..
Thanks

Q: From today's Globe and Mail: Equity markets opened lower Thursday as global bond yields surged higher. Mehul Daya, an analyst from South Africa-based Nedbank, believes bond yields are approaching the “Rubicon level,”

“The JPM Global Bond yield, after being in a tight channel, has now begun to accelerate higher. There is scope for the JPM Global Bond yield to rise another 20- 30bps, close to 2.70%, which is the ‘Rubicon level’ for global financial markets, in our view. If the JPM Global Bond yield rises above 2.70%, the cost of global capital would rise further, unleashing another risk-off phase."

Normally, 'risk off' means purchasing the very stocks which perform badly during rising rates, ie. dividend stocks. That would not seem to make much sense here. What sectors do you believe would be most and least affected by these rising bond yields? I know it supposedly helps the banks and insurers but we have been hearing that all year without much sustained impact on their stock prices. So I'm uncertain where to put new money.

Q: Has anyone else received, in the mail, a notice of proposed settlement of class action for Amaya, with the Proof of Claim and Release form? Reading through the notice, at the bottom of page 5, it says that shares purchased on the TSX are not included in the settlement. Why not? And why bother sending us the package?

Q: How does the unwinding of the Fed's balance sheet impact the bond market?

Q: Thank you for your HUV recommendation. I am looking for a "short/bear" type ETF or stock to protect against downside. Would you suggest any strategy.

Q: Gentlemen,
About the 30 days waiting to re-buy question.
I own stock X on my margin account, I have a loss this stock.
If I will buy stock X on a registered account.
And after I will sell stock X on my margin account
The loss can be claimed in this situation or I have also wait 30 days before selling ?
Thanks
BR

Q: Hi 5i - I have a portfolio weighting question. Assuming I have a portfolio with 60% Canadian, 30% US and 10% Other International, would the 60% Canadian portion be considered on its own for individual stock weightings? For example, if I consider a 5% position in BNS a full position, should I have 5% of my total overall portfolio in BNS or 5% of the 60% Canadian portfolio?

In general, what would you suggest?

Thanks, Neil

Q: Dear 5i
It is my understanding that withdrawing retirement income out of an RRSP or a RRIF , all income withdrawn is taxed at the current marginal tax rate at the time for that individual based on the total amount withdrawn . Correct?
The taxes paid have nothing to do with how income inside the plans are generated ie., interest , dividends or capital gains . Correct?
As such a systematic withdrawal plan (SWP) is generally meant to be used and beneficial in non-registered accts .only I'm assuming .
Do i have a clear understanding ? Appreciate your comments .
Thanks
Bill C

Q: Re. Oct 1 question, fwd p/e's can be found under statistics in Yahoo Canada Finance. I cannot verify the accuracy.

Q: Tax loss selling

Would you please clarify the 30 day wait period before repurchasing shares sold for tax loss purchases. I sold shares on Aug 31 which closed on Sept. 5. Which day can I buy them back? Thanks for your great service.

Q: Regarding Fraser's question about forward P/E.. Morningstar does provide forward P/E for free.

Q: I recall reading in Q&A earlier in the year that in determining percentage of sector allocation in our portfolio we use the stocks only total sum and not include the sum of our ETF's. Did I understand that correctly? If so, then to understand our sector allocation of our ETFs do we take the average of the ETFs' specific given sector allocation(i.e. for Financials in VFV,SPY and VIG approx. 14.30%) ? So if we have Financials sector allocations of 15% in Stocks and 14.30% in ETF do we view it as approx. 15% Financials in our total portfolio or is is understood to be the sum of the two(29%)? In addition to our personal investment accounts we have an investment account within our small family business.Should I be adding the sum of this investment account to our personal accounts for tracking sector allocation? Thank you for your assistance with clarifying sector allocation .