Investment Q&A

Q: Hello,
The equity portion of our portfolio is 25% S&P ETF and 75% blue-chip Cdn dividend-paying stocks. We've used DRIP for a number of years, our reasoning being no fees to convert dividends into shares and to stay invested. Do you concur? My concern is both the book and market values include those shares purchased through DRIP...so it's not possible to distinguish between dividends and share prices. That would be very helpful to know. With such clarity, I'm supposing we would have ignored the advice to hold on in a couple of our holdings, eg CIX who's share price (exc dividends) relative to what we paid several years ago must be dismal. Your thoughts on that? Maybe you know how we can get such clarity, ie without stopping DRIP? Thanks.

Q: I am looking for a suggestion for my son's RESP for a reliable 3-4% rate of return as we are starting to withdraw funds.
Thanks very much for all your excellent advice!

Q: It appears to me that major components of our economy are slowing. Specifically, vehicle sales, home starts and home sales all seem to have stalled or are stalling. Considering the outsized contributions these make to our economy, when coupled with a US - China trade war and increasing interest rates, why would one not sit on the sidelines during this market correction and/or go more into cash?

For example, people often complain about the effect of the price of oil on the economy, but the reality is that fuel and electrical production are ~ 10% of Canada's GDP whereas real estate, construction and related financials make up ~20% and automotive exports are the # 1 or 2 export from Canada.

I can't help but think that things are going to get worse before they get better...

Cam.

Q: Volkswagen no longer sponsor its ADR. I could either change it as an non-sponsor ADR or I could convert it into VW shares that are trading in Germany. Please tell me the pro and con of these choices.

Q: hi guys is it possible to buy an american stock within a canadian acct and hold it in same acct or is it better to transfer funds to an american acct and hod in that acct thanks as always

Q: I've noticed on several occasions over the years that subscribers have "called you to task" for advise that didn't work out. I can understand their frustration, particularly if they're down a fair bit because they followed your advise.
I've been an investor now since the 1970's and I don't look at it that way at all. You don't claim to be right all the time. It's a constant assessment of risk versus reward and sometimes it doesn't work out. As I've told my own adviser, who I have a lot of respect for, she doesn't have to be right about an investment. What I do expect is honesty. That's what I pay for and I get. If she was right every time, what would she need people like me for.
Similarly, if you were right all the time, would't you be sitting on your 300 foot yacht on the Riviera sipping Scotch. What would you need us for? Just keep on giving us honest opinions, even the riskier ones that sometimes disappoint.

Q: Hi,
A question about the webinar yesterday on "how to pick a stock in 2018": How do you put the 20% rule from the "Lessons from some Experts" in practice ? Do you sell when the market(or a particular stock) corrects for 20% or more ?

Q: I am a retired, conservative, dividend-income investor. I have added ROE and Payout Ratio to the metrics that I track to assess the securities that I hold. Can you give me some ballpark levels that are a good starting point? For ROE, is >10% a reasonable level? For Payout Ratio, is <90% ok? I suspect it differs by industry (eg. I know the banks are around 50%), if so can you lay it our for me...thanks.

Q: I know this isn't an exact science, but can you list what Canadian sectors you think will be the hardest hit by tax-loss selling? Is it a good idea to wait until early December to pick up some companies in these sectors?
thanks,
Paul

Q: Just a comment about Terry complaining about 5i's bad advice regarding when to sell financials. 5i should make it perfectly clear that this is not an advisory service. People need to take responsibility for their decisions, and stop blaming others. Start with a financial plan, know yourself, and always remember the stock market is a tool for redistributing wealth from the many to the few. A plan will help you end up with "the few".

Q: Is it possible to view the recent webinar as it was not possible for me to attend?

Q: Hello Peter. I attended yesterday's webinar and must say that I found it to be of assistance. I do, however, have a question regarding when to sell a stock. In your presentation, you said that one of the biggest mistakes is to take too long to sell a loser. You also said the "Doing nothing is almost always better than reacting". These statements are a little contrary to one another. For instance, I purchased The Stars Group when you recommended it a number of months ago and all it has done since then is go down. How do I reconcile selling or holding in this case. Your thought process would help me a lot. What are the key factors to think about in my decision to hold or sell in this case and in general?

Thanks Peter.

Alex Riben

Q: This is ugly. I asked you on several times about selling my Financials in both Canada and US (was up 40% on average)) you advised against this? (In hindsight your advise wasquestionable - Question I have now is should I sell some higher risk stocks in different sectors and load up even more on Canadian +American banks . I know you cannot be right all the time but this turned out to be a major miss for me. I still cautiously valve your opinion. Thanks

Q: Hi 5i
I wasn't available for the webinar.
Is there any intention of providing a link to it to view/download ?
Thanks

Q: Yesterday in your Webinar, you said "Sell the losers!"
I am down 44% in TSGI, 48% in VET and 35% in WEF. So are you! These stocks remain in your Portfolios.
Please help me understand what constitutes " A Loser" Thanks,

Q: Hi Peter and good people,
What behaviour and/or level of the VIX would indicate the washout has occurred?
Thanks,
Mike

Q: How can i find the ex-dividend dates for any company. Is there a specific site?
Currently I'd like to know when MFT (Mackenzie Floating Rate Income Fund) goes ex-dividend, but my question is more general that that.

Q: Bank of Canada just raised the key rate to 1.75% and drops its pledge to move gradually. What's Mr. Poloz seeing that the rest of us are missing because the TSX is singing a much different tune? I hope it's not the part time jobs from the recent elections in Ont, Que & NB. We're a little removed from what's happening in Central Canada but I can safely say the Alberta economy is not running at full capacity. In fact one of the largest land developers in Calgary just recently let go 40 office workers.
It's not the first time the BoC has been offside and had to reverse course. They seem to focus too much on a few key data points and ignore the economy as a whole.

Q: I watched Peter's Investing Seminar this afternoon and would like to thank him for providing us with such an informative presentation. During the seminar he mentioned a company whose name sounded like AMARANA. Could you provide me with its proper name please. I would also like to get a print out of the slides used during the presentation. How do I do this. Thank Mike you.

Q: Good afternoon folks:
Is this a healthy correction plus tax loss selling as well? Could u please give your opinion on what retail investors should do in this volatile environment?