skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi Peter and Associates,

I hear some talk of tax selling as early as August? Some professionals speak of setting up their portfolios to avoid and/or to take advantage of year end tax selling pressures? Some sectors and/or specific stocks have seen modest to significant declines this year and risk seeing above average volumes of yearend tax loss selling?

Many experts do not suggest trying to time the market but also talk of good entry points to initiate a position if not starting with partial ones to begin. Then there are those who factor in seasonality or other technical indicators. Without wanting to sound pessimistic, more than a few guests on business programs express caution, have increased cash weighting to have dry powder in reserve.Markets are not seen as cheap but opinions vary as what to do?

Bottom line, market corrections are part of reality and one has not occurred in some time? What percentage cash might be viewed as a reasonable cushion for a middle of the road risk investor with a 65/35 (Equity/ Fixed Income) objective who would prefer to reduce equity exposure by building up some cash reserves at this time? What suggestions might you have in response to the above and specifically, what reduction in equity exposure might be reasonable and/or sufficient to have substance? Assume a 5% weight in gold forms part of the overall strategy and a sufficiently large portfolio to provide diversification and no over weightings within it.

Fundamentally, are there any specific strategies an investor might use or at least consider in the last months of any year and more specifically this year?

Thank you.

Mike
Read Answer Asked by Michael on September 01, 2017
Q: I recently heard an investment advisor outline the importance of diversifying beyond “public” equity and also invest in “private” equity (he was quoting the huge amount of private equity that public pension plans typically hold). Do you agree with this thesis and do you have any suggestions on how a retail investor could invest in private equity? Would buying a company like Onex be a good way to gain exposure to private equity?
Read Answer Asked by Steven on September 01, 2017
Q: Hi, what is the business sentiment in Canada among CEOs and business owners vs a couple years ago?
It seems everywhere in the news lately that Canada is just not as an effective and attractive place to do business with its increasing bureaucracy and threats of increasing taxes. From Ontario, where the high utilities are impacting manufacturing, to Alberta and BC where the anti-oil brigade seems to be determined to kill any new O&G, LNG and pipeline investment.
Is the news painting an accurate picture? Are CEOs and business owners more/less positive with trying to perform and grow their business in Canada in the current environment?
Read Answer Asked by Curtis on August 30, 2017
Q: Just a comment on the changes to the ex-dividend date due to T+2 settlement in Canada and USA from September 5, 2017. Your members may find it useful.

Starting September 5, the ex-dividend date will move one day ahead (only one day before record date). So for instance in the month of August - record date is Aug 31 - ex dividend date is Aug 29.

In September for record date Sept 29 (Since 30 is a Saturday), the ex-dividend date will be Sept 28.

From the CCMA website:

(Added February 22, 2017) Will there be any T+2 impact on record and payable dates?

In Canada, the ex date on declared events such as dividends or other distributions will become one business day prior to record date instead of two business days prior. The exchange on which a security is listed provides the exdate to CDS, and CDS populates the date into its system. In the U.S., there will likewise be a one-day change.


If you want to read up more there is documentation and Qs at the following websites:

US T+2: http://www.ust2.com/questions/

Canada T+2: http://ccma-acmc.ca/en/faq/
Read Answer Asked by Mayur on August 29, 2017
Q: When you buy an action with a dividende at a given rate, does the dividend payment you receive stay the same indepently from the variations in the price of the action ?
And, when you buy the same action again, but at a different price and at a different dividend rate, how do you calculate the actual dividend you are to receive ? For exemple,if I bought bip.un at 44. with a dividend rate of 4.40% and I buy it again at 54. with a dividend rate of 4.%, what is the effective combined dividend rate after the second purchase ?

Thank you for your kind attention,

Jacques
Read Answer Asked by Jacques on August 29, 2017
Q: John Mauldin wrote a piece this weekend on how to avoid large draw downs in equity investments. He advises to buy and stay invested when a security is above its 200 simple MDA and sell when the security falls below its 200 MDA. I may get whip sawed sometimes, but I will avoid the large draw downs. I am 70 and I don't like losing capital. 50% of my RRIF is a dividend portfolio set up to cover my required minimum withdrawals for the first 5 years. If you agree with the opening strategy would you also agree it could possibly not apply to the RRIF. I am very interested in what you think about this strategy.
Read Answer Asked by Richard on August 28, 2017
Q: I've recently read that FAANG stocks should be avoided because they make up a large portion of the Dow Jones Industrial Index and the S&P 500 Index, meaning every ETF owns them. What you usually end up
with is a reversion to the mean. The more shares that must be bought with each investor purchase of an index fund, the more the performance tends to follow an “average” return. I would appreciate your thoughts on this statement, thank you.

Read Answer Asked by glen on August 28, 2017
Q: the question I keep asking my self is why do I buy recommendations. These three are your picks so bought but all have declined since purchase. I have no problem with volatility but what is the percentage decline that yo u should expect on these kind of stocks, down 12,10, and 15%. My limit is usually 18-20. so should I wait for my target or move on.
Read Answer Asked by Ross on August 25, 2017
Q: Hi Peter
Just went through my portfolio and these are my asset mix results.
Tech - 19.8 %
Basic materials - 17.9%
Consumer Cyclical. - 11.7 %
Consumer Non Cyclical - 9.4 %
Energy - 9.0 %
Financial - 8.0 %
Reits - 4.5 %
Health - 3.4 %
Telecom - 3.8 %
What do you think of my sector waiting? Any thoughts on sector performance going forward... Should I be shifting my percentage on any of the above sectors going forward from here?
Appreciate your advice always!!
Read Answer Asked by Mike on August 25, 2017
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!