Investment Q&A

Q: I have a general question about market portfolio allocations. I am 31 years old and my wife and I have a new born coming. We have from the sale of a property $150,000 to invest and would only change the allocation in the portfolio once in a while to readjust. I was thinking of holding 20-25 stocks.

In your opinion what is a good ratio to put in different sectors for a diverse portfolio. (10% energy, 10% financials, 10% bonds etc....). Also how much should you invest in the US and in the small cap sectors?
Thank you

Greg

Q: Would you sell Goldcorp today at a 20% loss (for tax purposes)with the intent of buying it back in 30 days, or is that getting too cute with market timing?

Q: Not a question but more of a comment regarding the following answer you provided: "Credit Suisse has downgraded the company to underperform, but these moves are designed to generate trading and fear amongst investors, in order to get commissions."

This is so true and so conflict-free, bring it on!

Q: Hi Peter,

I'm down considerably on the above names.
Would it makes sens to sale them now for tax purposes and
buy something equivalent for the next 30 days, so if a pop up happens I won't be out in the cold.

What do you think about this strategy and do you have any equivalent replacements?

Thanks
M

Q: I just heard on BNN that someone (didn't catch which brokerage) had just downgraded atd.b which I hold and have done well with, to a SELL. Kind of shocked at that. What do you make of it. Real Bad News to come??? or what
Thank you Peter and Staff for all you do.
I have learned a lot from your site.

Q: Hi Guys, I am absorbing a lot of market information and I am more frequently seeing that a market crash is imminent!
Many large investors are keeping there money out of the market at the moment...
I understand we have some sectors out of favor right now like oil, and many others sectors are doing just fine. I am not sure how to interpret the tea leaves so to speak and I have poor intuition on timing the market like you guys.
From all the information you guys scour from the market, probably more than what the average investor has access too, can you provide some market intelligence to us (your customers) on a regular basis?
Regular basis to me would be weekly and sometimes more frequently depending on global events. The oil sector I see has been telegraphed for sometime and yet I did not see this coming. I am sure you guys have access to info on the oil sector that may have dictated this downturn quite possibly.
I guess I am saying, is there a regular feature you can provide us that gives some timely market intelligence and sectors we may want to reduce or increase our holdings in?
Thank you!

Q: Hello Peter & Co.
I recently trimmed my energy exposure by exiting BTE and CPG from my RRIF portfolio with the intent of adding to my current positions in HWO, TOU, VET and WCP; however, given the energy outlook in the next while (?), I decided to postpone that decision. As a result, the sector weighting is reduced from 10% to 6.5% (vs 2.6% in 5i equity).
However my exposure to financials is 7.8% (vs 12.9% in 5i equity); it includes BNS, EFN, HCG and TD. I'm thinking of adding SLF and DH at current prices (DH could also be classified as half financials and half technology). Does this sound OK to you?
As for technology 13.2% (vs 22.3% in 5i equity) I hold CSU, CGI,ESL,MDA and OTC. I'm thinking of adding DSG at current prices; is it OK to do so?
Thanks,
Tony

Q: Hello Peter & Co,
I have scanned many financial advisors' returns and find that your equity portfolio's returns are up there. Congratulations!
It took me quite a while to replicate that portfolio; I now hold 15 of your 22 stocks + a few in the health/pharma sector.
However, I wonder if you consider "the big picture" in your stock selection process; I'm asking this because I foresee some key catalysts pointing to some additional pull backs (eg. Fed fund rates increasing, Euro zone and Japan weakness, strength of US dollar putting pressure on Emerging economies, prolonged weakness in the Energy and Materials sectors).
I look forward to your response,
Tony

Q: I added to my shares of pne with the recent pullback in energy. Would like to trim shares when shares are up more, thinking this would be my way of generating dividends from the stock. I have problem with timing when to trim my position. I tend to be all over the map. Could you give advice on this?

Q: Are you able to indicate what the Bnn policy is with respect to the top picks? I had been wondering what it is. Some times you hear a guest mention a restriction on their buying of the top picks and other times I could have swore I heard them say they were buying the stock the day before or even that day. Thank you.

Q: I have most of my portfolio in cash and equities. I don't understand bonds very well and I'd like your recommendation on a long term bond for a RRSP.

Thanks
Charlie

Q: I first want to say that I really like the service offered by 5i and have recommended it to others. I would to better understand the portfolio review service that you are now offering. Will your team be considering risk tolerance, age, etc? I just don't know how different the recommendations/feedback will be other than mirroring what the model portfolios already offer.
I am considering it, but would like to know more! (I imagine this question might be on the minds of others too)

Q: Hello,

I have watched Peter on BNN Market Call and look forward to his Top Picks. I am wondering if you can include a Blog regarding his Top Picks before airing. This will give a chance to active subscribers to do some research before hand and possibly take a position if it posted early. It may also be an added benefit to someone considering becoming a member as well.

Thank you

Q: Hello 5i
Can you give me the pros and cons of investing in funds such as those offered by donvilleKent and Stonecastle? The returns look quite good but maybe "it too good to be true".
Thanks Dave

Q: Further to Grant's question on Chemtrade, the bought deal for $100 million, with shares purchased at $21.30 each, saw the market price of shares drop from $21.92 to $21.30 ( as I write this). Can you explain why it appears that such deals tend to lower the stock price, in the short term, to the amount of the bought deal price? Thanks.

Q: Hello,

Do you have a predetermined number of new reports you try to produce every year ? (understanding that updates to current reports is already time consuming)

With regard to taxes, I never claimed any deductions for the 5i annual fee. Could I add them all and expense it all against 2014 dividend income ?

Thank you

Q: Further comments re: Nov 17 (M S) comment on DRIPs through TD Waterhouse (TDW). Per my phone call with TDW earlier this year, TDW purchases DRIPs either from treasury (ie: at the discount price) or at market price. Below are some examples TDW provided:
Treasury DRIPS: BNS (Bank of Nova Scotia), TD (TD Bank), T (Telus), WSP (WSP Global)
Market DRIPS: AD (Alaris Royalty), CGX (Cineplex), SGY (Surge Energy).
Publish if you wish.

Q: Hi again Peter & Team,

Scotia iTrade automatically factors in the DRIP discount,if one is offered, when an email request is sent. I personally don't bother with a DRIP UNLESS there's a discount!

In response to the comment from MS, all email accounts should be set to "https". This gives me the confidence to communicate with iTrade via email, and fortunately I haven't had any security issues. (I hope I'm right!)

Q: Further to comments re drips: I really don't like the suggestion of sending confidential financial information via email unless it's encrypted for security (which Scotia trade may well be, i realize). I made a phone call to TD direct investments and they took care of it in seconds. I confess I don't know if they give the discount.

Q: Good morning Peter & Team,

This isn't a question. Austin recently asked you how to go about setting up a DRIP for a particular stock. I am with Scotia iTrade, and it's a simple process to set up a DRIP, just by sending an email to their customer service dept., with details of the request - account number, number of shares, and name of stock. They also have a nice feature that indicates what stocks in your portfolio are set up with a DRIP (a highlighted "D" in a circle).

Perhaps other brokers require the client to contact the company's agent directly, but certainly iTrade has made this process really easy.

Thanks for your wonderful service. I am constantly learning and find the Q & A section invaluable.