Investment Q&A

Q: What is your opinion? I'm thinking of creating a "synthetic annuity" by investing some U.S. money in a U.S. covered call etf, namely SPXX. It provides a generous dividend (about 7%) and seems as secure as a regular annuity since it invests in the S&P 500 stocks. I know the share price may decline along with the market, and the dividend may fluctuate. Therefore the income isn't as fixed as a regular annuity. However, I also retain some principle and don't give it all to an insurance company. Generally speaking, what do you think of such a "synthetic annuity?"

Q: Hello Team,
Can you help clarify for me what seems to be a contradiction. Markets are supposed to have priced in the possibility of a US rate increase sometime this year. Yet, when the Fed minutes released today (May 18) indicate that may indeed be the case, markets react with volatility (i.e., gold down, oil down, US dollar up, financial stocks up, etc.).
My question is, if the market has priced in a rate increase, why is there so much volatility when there is the hint it might actually happen?
Thank you, Michael

Q: watchlist:

I was wondering if you could share a few of the companies you have on your watch list so we could start reading about them. I, personally, am closely watching the following : PFB, HEO, TSL, SY, RFC, PTG, PIF, PHO, PIH, IBG, FTG, GDI , DIV and EUO.

Q: Is there a link to Peter's article in last Sat's F. Post. May.14?

Yx. A

Q: I understand that some individual reits are considered 'fully valued' on a P/E basis - based on historical 'norms'

question: looking at ZRE can you provide a 'rough' calc on the overall P/E with an eye to whether you feel it is at, near or over its traditional long term valuation range

or, more importantly, based on metrics you (5I) would use, what is your currently concern about reit valuations?

thank you in advance

Q: Hello Peter and Team, What are thoughts about this ETF for a 3 year hold ? Thank you.

Q: Interest rate anxiety seems to be sweeping the markets again. Refresh my memory about what sectors are likely to be hurt worst in this silliness. I would have thought reits, utilities and telcom but it was consumer staples that got hammered today while the telcos did fine.

Q: Do you or any of your readers know if there a free program that can Monitor - Streaming Data for Stocks, Major Indices, Forex, and Commodities. I was using HDVFN, but are unable to use any more. Manuel

Q: For transferring money from the UK to Canada I use Tranferwise. It is a bit of a pain to set up but fast and easy afterwards. I transfer the money to their account and receive in in my bank in two business days.
Most important they have MINIMUM fees and use wholesale rates.
For transferring to/from another country they may suggest another financial institution.

Q: I do not rely on technical indicators in a large way, but I use them to solidify my opinion of a company and to a degree timing a purchase. This would pertain for me mostly to a value or momentum indication within a stock. Is there an article or book that you are aware of that might give me a breakdown of how often an indicator proves to be correct and to what increase or decrease of price deviation might occur after the technical is noted? An example after a stock passes its upward 200 day moving average there is a 60% chance it will continue upwards by 10% within 30 days of that occurrence (Not factual). I do not mind doing the math myself but I respect and consider others opinions and formulas and also they may give me different insight. Any technical that you yourself like or consider?
Thanks
J

Q: Please give me your opinion on these two Etfs for my Tfsa. Thank you.

Q: In Peter Hodson's article in Saturday May 14th edition of the national Post he described how to convert Can$ to U.S.$ without paying high foreign exchange fees.
Question 1 what are usual fee rates you say are high.
Question 2 Can one do this in the opposite direction? ie Move U.S $ to Canadian

Q: Glacier has just announced a rights offering. Could you please explain how this works, what the advantages are for the investor and for the company, why would they do this and is this typically a prudent move by the company. Putting Glacier aside, do you recommend investing during a time when a company has made such an offering? Also, how do the backstop agreements work? Thanks for your great work.

Q: We are recently retired with no pension but would like to get the $2,000 each pension credit in this and future years. What are your thoughts (pros and cons) please on purchasing a say $100k annuity, which is roughly 10% of our registered savings. Thank you.

Q: Could you please explain the US index "BIXX" & what it is intended to represent. Thank you.

Q: Hi,
Im a young, passive investor. Im looking for long term strong TFSA growth to eventually convert into TFSA retirement income. I am new to investing and don't really have a grasp on all the concepts yet.
Can you offer an opinion/advice/education on the pros and cons of investing in ETFs that are Canadian dollar hedged vs. non. Which you you recommend for long term consistent and strong growth.? The two listed are what Im thinking for gaining some US exposure, unless you are able to recommend something better?

Thanks!

Q: Hi,
I have an investment horizon of 10-12 years and I am wanting to use mostly ETF's for the next 5-7 years for sure. - Can you recommend a website or book that I can find ETF's in all of the Asset classes you have identified in your model portfolios. I own CDZ now but I am hoping to hold about 7-10 more ETF's.

Q: When a company beats estimates. Who sets the estimates the advisors or the company.

Q: I had the experience of buying US stocks with Canadian funds.As the settlement date was three days later and during this time the Canadian dollar weakened my base cost was rising while waiting for the settlement date;the actual cost of the shares in US dollars remained the same.I was advised by the rep to convert first the required Canadian funds and then buy the US stock I was looking for in US dollars;ie I could convert at my own preference.

Q: Regarding Cheryl's question concerning U.S.$ registered accounts with ScotiaiTrade, I am not sure if this is what she is looking for but for RRSP accounts (maybe TFSA?) one can make the account US$ friendly so the 2% premium on Forex is not charged for sales, purchases and dividends. You make your account "US Friendly" and they charge $30 per quarter per account that is converted to that service. There is a way to do it online but one can also call them. I hope that helps.