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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: I recently asked: "f had $500,000 invested in the Income Portfolio balanced exactly as it was in 2017, how much money would I have earned in 2017?"

Your answer was "The income portfolio returned 9.28% in 2017; so $500,000 at the start of the year would have earned $46,400. Note our portfolio returns do not include commission, so your actual return would be slightly less than this depending on your commission charges to buy/sell.'

y follow up question- Does that figure of $46,400 include the dividend pay out, or just the appreciation of the portfolio?




Read Answer Asked by William on May 23, 2018
Q: Why do most Asset Allocation models or discussions include BOND funds or ETFs but not GICs? Is not a laddered portfolio of GICs an alternative ?
Read Answer Asked by Gordon on May 17, 2018
Q: Are there any differences with owning US stocks in a Canadian account vs a dedicated US account?
Read Answer Asked by Mike on May 14, 2018
Q: Dear 5i
I just want to verify with you when you generally recommend a max amt of 5% in any one stock you mean 5% of the total of all individual stocks held plus cash held right ?
You generally don't include ETF`s of stocks such as ZDM,ZWH,VFV,and VGG of which i own .I`m including the cash component because of the intent to eventually use that cash to buy more stock .
I just want to be sure I'm understanding this correctly and not unintentionally investing far more in one stock then what i should be .
Thanks
Bill C.
Read Answer Asked by Bill on May 14, 2018
Q: Dear 5i
If i own a stock that pays a 4% dividend thats paid quarterly and i`ve got $10,000 invested then the quarterly amt paid would be about $100 correct ? ie 4% of 10k divided by 4 .
Thanks
Bill
Read Answer Asked by Bill on May 14, 2018
Q: Hi team,
I saw a comment earlier today about increasing your U.S. coverage, that I would also like to endorse. I realize that staffing and resources and the sheer breadth of the U.S. markets are significant constraints. Even though you do not officially cover the U.S., your comments are spot on. I discovered BOX from your comments; SQ as well if I recall. I am moving more and more funds to the U.S. these days, mainly for tech, some financials. Tech is a long term secular theme that will be here long after we are all gone. The TSX is such a narrow index; financials, oil and gas and materials. Perhaps you could consider venturing into the U.S. on a sector basis, where the TSX is weak, such as tech. Maybe add in consumer and financials.

I for one would be willing to pay a significantly higher annual subscription for U.S. coverage, just for certain sectors if necessary. I have subscribed in the past to several other investment services that were much higher in price and much inferior in service to yours.

Thanks for your consideration and as always, I appreciate the service.

That’s my 2 cents worth (in U.S., not Cdn).
dave
Read Answer Asked by Dave on May 11, 2018
Q: After a poor quarter, or other "bad" news announcement that causes a stock to sell off, how long typically does it take the security to find its new price level and stabilize (how long does it normally take for selling exhaustion to take effect)? What indicators can one use to see when this new price level has been achieved? Volume? Price stabilizes for x number of days? Thanks!
Read Answer Asked by WAYNE on May 11, 2018
Q: I understand that many former technology companies such as Google are being re-classified as Communications Sector. These companies are widely held in many ETF's and Index funds. This ultimately changes the ETF and Index components and may generate unplanned capital gains or losses.
Is this correct and in your opinion does it happen often?
thanks
Read Answer Asked by Ian on May 10, 2018
Q: Regarding questions on SIS and other companies that announce earnings release dates. Some announcements are made before the market opens while others are after market close. Do you think there is a tendency to announce after market close if results aren't stellar and to force share holders to sleep on it rather than announcing before market open and having a knee jerk panic sell off? Although some may worry until market opens in the morning and selling could be just as bad. Have you ever pondered release time frame versus good/bad results?

Thanks
Dave
Read Answer Asked by Dave on May 09, 2018
Q: Hi 5i,

This is a general question but I listed Tesla as an example. I am curious about the influence of shorts on a company's stock movement. I have a friend who says that the price of, say Tesla, is held back by a large number of outstanding short positions. And, ... if the shorts start to be removed, Tesla stock will take off. My own belief is that there are many significant factors on what a stock moves up or down, and I would say, shorts play only a minor role in the price movement. So my question, how significant are the short positions in price movement ?
Read Answer Asked by Jim on May 09, 2018