Investment Q&A

Q: HI 5i,

I unfortunately bought into Shopify and Apple right before the big tech sell off on Friday and today, and as such I am down quite a bit.

I know the financials and growth prospects of both companies are VERY strong and a rebound is likely within the next month, so I am wondering whether this is an opportunity to buy these stocks at a lower price. My sector weighting in tech is currently 12% (I am in my mid twenties with a higher risk tolerance), so I am also wondering whether you think I should instead sell to cut my losses if you see this correction continuing long term.

Thanks,

Grace

Q: Good morning gentlemen,

I have fairly large gains in the fang stocks as well as with Apple. With the Nasdaq taking its second consecutive beat down today, Would you be inclined to take profits. With Apple being down close to 8 percent in two days ( due to downgrades, ostensibly), in your experience. Does a stock like this rebound the following day? Also, do you think the sector shift away from tech could be an enduring trend?

All of the aforementioned positions are at 5-6 percent holdings.

What I'm getting down to is : sell today, or wait for a rebound ? I understand the former involves a degree of market timing, but surely with your many years in the industry, you must have some flair for such events.

With much appreciation,
Karim Rahim

Q: My daughter has $15K she will be putting into her TFSA with another $1500 per month following (at least, could be up to $2500). She has another $11000 that currently is with a fund manager that is a mutual fund that we will not touch. She will be using this a down payment for her first home in 14-18 months. She is OK with a little aggression as she is aware of the volatility. Are there some ETF's, stocks or other that may be suitable for some growth over that short time period?

Q: Hi 5i super team!! I have a hypothetical question...I am a dividend investor. I do not subscribe to automatic dividend reinvestment, rather, I collect the cash and then selectively reinvest the cash in the stock that seems to have the best value. Suppose I own stocks A B C D E...all are overvalued except C which is a bank. Even though, the price of the bank is at the higher end of its 52 week range, and even though the stock potentially faces future head winds, do I keep reinvesting the dividend cash into this stock? If it holds a higher than7% presence in the portfolio at what point do I stop reinvesting the dividends into it and perhaps selecting to invest in the next best valued on the list? I am looking for a rule of thumb here if there is one. Hope you have a great weekend! I hear it is going to be a hot one 😎😎😎

Q: Hi,

Finally opened a TFSA 6 months ago. Contributed $10K so far and expect to be contributing $1,000 - 1,500 per month for the indeterminate future.

Currently hold AQN (28%), MFC (24%), GUD (10%), PHO (7%), PEO (6%) and cash (25%). Looking at the following to use up the cash: ENB, SYZ, ITC, OTEX, SIS. I am open to any of your recommendations. Should I wait a couple of months to accumulate more cash?

Thanks.

Q: Hi 5i team,

Im just wondering what determines which company gets reported. I see some have multiple coverage while some haven't had any.

Q: RE: June 08, 2017 - Asked by Jerry - NEO >>>>

Looks like I won't be getting quotes directly from Google any time soon. Received the following reply to my email from NEO:
Thank you for your market data inquiry. I can confirm that we have engaged Google Finance with respect to making NEO Exchange market data available on their platform, but they have been less than responsive. Most global data vendors do currently support NEO data. If you are inclined, please feel free to contact them directly with your request, as there are no applicable fees for them to make NEO data available.

Q: As I am over 55 and live in BC I qualify to defer my property taxes until sale of our home. I will have to pay .7% interest on the deferred funds this year and the rate can change yearly. I was thinking of depositing the equivalent funds (about $2500 per year) my TFSA each year as i have unused room and I was wondering what recommendation you would make for a reasonably safe investment for these funds for the long term until sale of our home when they will come due along with interest.

Q: Hi Peter, Ryan, and Team,

I understand the rationale for different weighting of sectors among the three portfolios. You've stated in the past that we should look at our entire portfolio to "determine where we stand", and I've done this for my RRIF, my wife's RRSP, both of our TFSA's and our joint Margin Account. I use Google Sheets to track this entire portfolio. My question is this: In a 'composite" portfolio, how can one determine the appropriate sector weighting, or is it purely a personal choice? For example, Technology is 21.38% of the Balanced Equity Portfolio, 32.05% of the Growth Portfolio, and 7.26% of the Income Portfolio. In our 'composite' portfolio, Technology has a weighting of 10.83% of the portfolio's equity portion. So I suppose my question would be "How do I know that my weightings are appropriate, and once weightings are chosen, do I stick with them? Or should they vary for different points in the economic cycle?"

I have another question that I'm hoping can be answered by one of our computer-savvy members: As mentioned, I use Google Sheets to track our portfolio which can "capture" the stock price for popular indexes like the TSX. However, there's a "new kid on the block", namely the Aequitas Neo index, and I haven't been able to "capture" prices to be inserted into Google Sheets automatically. As an example, a Canadian Money Saver top-rated ETF, (CLU) is no longer listed on the TSX, but is now listed on the Aequitas Neo index. Do any 5i members know how to accomplish this "price capturing"?

Given that there are several questions in this long-winded question, please deduct as many question credits as you deem necessary. Thanks for all your help! Now I'm going to watch Peter on BNN which I PVR'd earlier!

Q: Announcement today about CFO leaving the company and it looks to be effective immediately without further information.
Is this a red flag I should be concerned with?
Thanks
John

Q: I am wondering how to proceed...SIS is held in a well balanced "balanced" portfolio and now it's weighting is 7.8% with 55% unrealized gain. (SIS position is held in TFSA). I'm wondering
which "rule" I follow now....reduce the weighting or let the winner run? How do I decide which one to follow for SIS? Or do I do a compromise and cut the weighting to 6% rather than 5%?

Q: Hi Peter, Ryan and co

My TFSA, RRSP, and RESP is entirely comprised of the model portfolio, and about half of the growth portfolio. The stocks I selected from the growth portfolio in particular has done very well so far. However, this means that I currently don't have any exposure to the US or international markets, other than VGG.TO, which I hold a 3% position in my RESP.

I have some funds I would like to invest in a non-registered account, which would represent roughy 10% of my total aggregate investments. Can you please provide some suggestions on what you think I should invest in for better balance, while maintaining a medium-aggressive investing style?

Q: I'm thinking of adding five Canadian preferreds to my portfolio over the next few months. Currently I don't have any. Can you suggest a good source of information for selection and evaluation.

Thanks
Peter

Q: Would like to know if I am calculating the amount of the reduction in weighting for a particular position. This is how I do it....I take the current market value of the position, say 7% of the current market value of the portfolio, and deduct the original book, cost value, which is 5% for this position in the total money to be invested in the portfolio, and then sell this difference at market price at that sell date.....Am I doing it right?!
........Tom

Q: There were a couple comments today referring to a stocks yield based on the initial investment (which could 1 year ago or 10 years ago or more). I have seen this come up here before and on investment chat lines I follow. It seems to me that investment decisions should be based on the current situation (current yield, fundamentals, or whatever) and that yield on initial investment is somewhat meaningless other than as a pleasing way to view a successful investment. What am I missing? Could you comment?
Thank-you

Q: 5i team what would be your thoughts on adding some leveraged funds to my taxable account. The lending rate would be locked in at 2.99% for a year and then if no other promotional offers next year maybe in the 4% range after that. I would be investing the entire amount into ZDV with a dividend of 4.4%.

I can re invest the distributions monthly at no cost with Questrade. And the interest on the loan would be a tax write off.

How much of my portfolio would be the max to leverage (5%-20%) how long term should I be thinking to hold ZDV. Or any other candidates for ETFs?

Thank you!

Q: Hi Peter, Ryan and 5i Team;
I am curious as to whether or not the ratio between revenue and market cap is actually a useful metric. I present the examples of ALA (Revenue 2.4, Market Cap 5.1), and IPL (Revenue 2.0 Market Cap 9.9)

Q: I am an investor with no employment income. I have cash to deploy in both a Registered and Unregistered account. I am looking at KWH.UN, HOT.UN TD and BNS.
Should the REITs or the banks go into the registered or unregistered account?

Q: Hello, as I watched the EFN episode today,I can't help to think how fragile the market really is.With the market just itching for a good correction, do you think it would be wise or prudent to cash up now say 25-35% + and wait for the inevitable to come?
I realize this is timing the market and no one can tell when this will happen,but for the conservative investor who has seen it before,it seems like it's time.

Q: Paying only casual attention to your recommendations I have unrealized capital gains in my account to pay your membership fees for the next 250 years.
Had I been more astute/aggressive this number would be in the thousands.
My questions:
1. When you have cash in your model portfolios do you ever add to existing positions rather than add a new name to the portfolio?
2. Could you add a column to your portfolio summary page that would indicate the month and year that a stock was first included in the portfolio?
Dave