Investment Q&A

Q: The stock price has dropped to what seems to be a very attractive level.

High dividend and several new projects that could increase cash flow.

I would like your comments Thanks

Q: If I may add a follow up to your reply to Michael. I presume people subscribe to your service because they believe, and rightly so, that one can outperform the tsx composite. Accordingly the fact that the TSX composite may or may not have been flat for the past 10 years is not really relevant. I suspect many of your subscribers have handily beat the tsx composite index over the 10 year period.

Q: I have 80 % of my portfolio invested in the NYSE ( 10% Europe not hedged), I want to start moving some of my portfolio back into Canadian stocks but the CAN Dollar keeps weakening as does oil. Any suggestions or indicators I should use to start pulling the trigger? Thanks so much!

Q: Hey guys, last February you hosted a 5i seminar in Mississauga, are there any plans on making it a yearly event?

Thanks,

Jim

Q: Hi Peter & team, what is the difference between the Consumer Defensive sector and the Consumer Cyclical sector? Is Consumer Defensive another word for Consumer Staples (such as loblaw or Procter & Gamble)? Is Consumer Cyclical another word for Consumer Discretionary (such as Canadian Tire or A&W)? Thanks, Gervais

Q: I am wondering how safe Money Market funds are. It is my understanding that they invest in financial instruments and could possibly tank if for example those instruments (and perhaps the financial system) collapses, so your cash out would not equal cash in. Is cash truly the king in terms of certainty? In this case, would there be any insurance coverage (referencing your earlier response to another person asking about Money Market funds)?

Q: In response to the question re "not withdrawing capital" if one is retired, I am in the same situation. However, my portfolio is set up to produce enough dividends, so that we can "not withdraw capital". My assumption is that if the banks and telcos have to reduce dividends, we are all in big trouble! Before retiring, I also made sure we had the biggest line of credit the bank would give us, on our house, so I could draw on the line of credit if we need extra cash, and pay it back when stocks recover. If interest rates were 6%, my portfolio would be a more classic 60/40 split.
The bottom line is that living off your investments in retirement is complicated (but I enjoy the challenge), nerve racking at times and something I should have thought about more 10 years before retiring.
PS Probably belongs in forums

Q: Peter,
I read with interest today on Reddit about your investment education and experiences prior to starting 5i. I was struck by one comment, "There is guilt there but I am trying to make amends". It seems to me that the investment world is multi-faceted in its "guilt" and I would ask the following questions. Where are the investment regulators in this industry? And what are their rules on "conflict of interest" when it comes to investing? What about the individual investor's greed that drives them to ignore risk in an investment? Don't get me wrong - I am very happy that you started 5i - but I wouldn't beat yourself up about things beyond your control in the investment world.

Q: I was reading an article entitled "Markets down without uptick rule" by Daniel McGroarty and Larry Reaugh. Vancouver Sun. It was about 'stopping the shorting' to get Canadian Companies back on track for 2016. Can you explain it in laymen's terms and your views as to whether they are on track. Thankhttp://www.pressreader.com/canada/the-vancouver-sun/20160106/281745563370518/TextView

Q: Your thoughts on Sandvines earnings report today & initiation of dividend. Love the service Thank you If asked, answered & posted already pls disregard.

Q: In an earlier response you made a reference to “the typical small cap January bounce after a disastrous year”. I’m holding a few big loosers which I was looking to dump for a year end portfolio clean-up. I didn’t want to do any selling in the middle of the tax-loss selling season and was holding on in hopes of this “January bounce”. Given the way the market has started off the year so far, I’m beginning to think the chances of a bounce have all but faded away. Looking into your crystal ball, would you suggest still holding out a little while longer in the hope of a minor short term rebound in some of the names that have been decimated over the last year?

Q: It is my understanding that as of January 2016 the "private equity market" will now be available to all investors not just "high" wealth investors.
Could you comment of this change and whether or not ordinary investor's should pursue this opportunity?

Q: Where would the ordinary guy find estimated next year growth for a company. I have brokerage accounts with TD & ITrade but can't seem to find this information. Also, is comparing next years estimated growth to PE a good way of deciding valuation.

Thank You

Q: Hello,

Where can I find:
1) Historical information on shares a company has issued or bought back since inception
2) Insider ownership and who the insiders are

Thank you and wish you all a very happy new year.

Q: Last question to 5iR for 2015…and it is about 2016. I would like your comments on the target weights for portfolio asset allocation. (Details include a portfolio made up of a 20% income segment, 10 % growth and the balance of 70% balanced……and the dollar denomination, 80% CD$ an 20% US$)

CS 10%
Retail 5%
CD 10%
F 10%
Real Estate 5%
E 5%
Pipelines and services 5%
Health Care 10% (CD$ and US$ 50/50 split)
IT 20% (CD$ and US$ 50/50 split)
Industrial 15%
Material/Mining 1%…the plug figure
Transport 2%
Utilities 2% other than pipelines.

……thanks for keeping on the investment rails in 2015

May all at 5iR party well to ring in 2016!…..Tom

Q: We have a substantial investment in our RRIFs in SPY, IWO and XLK together with US banks.
We now want to purchase CDN ETFs with complementary US stocks for our TFSAs. Could you please recommend a few such ETFs that would fit.
Separately could you advise on how stock future prices affect the opening each morning.
Thanks for your great service.
Alex

Q: Hello Peter & Co,
I'd like to invest in the US through ETFs; assuming that the exchange rate is not likely to change significantly, which should I buy? hedged or not hedged?
Thanks,
Happy New Year
Antoine

Q: Hi Guys!
Please could you let me know which companies would benefit from a depreciating CAD (companies that have most of their costs in CAD but derive most of their revenues from other countries and earn other currencies)?? Also, do you think this rational should be good to get reasonable returns over the next 2 - 3 years. Thanks.

Q: Hi Peter can you tell me if it is legal for a public company to withhold information on a arrangement with another public company .iam referring to the Wi-lan net flicks deal
Kind regards
Stan

Q: Good morning Peter and Team. Hope you all had great holidays.

Where would one find a history of a companies outstanding share count over time? Is there a convenient place to see the history of a company's share buy backs or new issues? Thanks,

Wes