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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 team, I want to make a move from TD Waterhouse to the RBC trading platform and I wondered if i should plan to pay for all 'sell' transactions as i move out, and all 'buys' as i move in. Do you know? Thanks -- your service is so appreciated!
Read Answer Asked by Kate on July 28, 2014
Q: Hi Wonder Team
Please give me your advice or guidelines on "Averaging Down"! For example I bought a junior company recently that was going through a rough patch. It had declined 35% in the past year so I thought it was a good time to buy. However I was early and it continues to drift down. So here are the questions...If you still believe in the company and nothing has changed since the purchase at what discount would it be worthwhile to buy more...in other words does a stock have to be down at least 15% or 20% before it makes sense? Also, if your original purchase is 4% of your portfolio where is the upper limit? Lastly is it wise to only average down once...in other words do not fall in love with a stock! Ha!Ha! Thanks!
Dr.Ernest Rivait
Read Answer Asked by Ernest on July 28, 2014
Q: Dear Gentlemen,
Can I say that all stocks I5 follows are in the I5 Summary spread sheet ?
Thanks and Best Regards
Read Answer Asked by Djamel on July 28, 2014
Q: Is there a free website where I can see all the previous days closing prices of TSE stocks? Thanks for your time.
Read Answer Asked by Tina on July 28, 2014
Q: September is near and the market is near all time high. I would like to hear your ideas regarding protection for Canadian stock portfolio.

What do you think of ETF HUT. Would you recommend using it and if so, what amount one needs to buy for protection of $100K portfolio. Thanks Peter.
Read Answer Asked by Shah on July 28, 2014
Q: Recently you replied to a question about tourmaline that you would hold it in a tfsa account or, taxable account because of favourable tax treatment on capital gains. I thought an rrsp would be a better place if you didn't have roon in tfsa. In an rrsp you won't pay any taxes at all. Obviously, you know more than me in this area and so i am wondering if i have overlooked something
Thanks as always for the great , informative and interesting service
Read Answer Asked by joseph on July 26, 2014
Q: Have you ever thought of putting your model portfolios in an ETF?
This would make it alot easier for subscribers to buy into your portfolios as opposed to buying the individual stocks.
Read Answer Asked by RANDY on July 26, 2014
Q: re: TD, MFC Interest rates plus Amazon & VISA missing forcast

the market in general after the Amazon/VISA reports became public have fallen yet both financials TD & MFC saw nice gains.

What is your take on this and does this in any way indicate what might happen with interest rates?

Thanks for all you do

Gord
Read Answer Asked by Gord on July 26, 2014
Q: I am of the belief that interest rates are set to rise in the near term (although I have held this belief for the last Year). To play this thesis, I am looking at PROSHARES SHORT 20+ YEAR TREASURY ETF (TBF;NY). At today's price, this ETF is at a 52-week low so I feel that there will be greater upside potential than downside risk. I am looking at a 5% position as a hedge to my positions in interest rate sensitive stocks in the telecomm and enegy infrastructure space that will decline if interest rates do rise. Does this thesis make sense?

Also, in the event that the 10 Year Yield moves higher (say 3.0%), what impact will there be on Canadian and US Financials?

Thank You.
Read Answer Asked by Luigi on July 24, 2014
Q: Hi Peter and team, this question is regarding the article you wrote on concentration. I have a high concentration of XTC (bought at 3.30) and FSV (bought at 33.60), respectively about 15 and 20 percent of the portfolio. I am quite happy with the results, and am of two minds on whether to continue holding or take profits.

I don't feel that either company has a dominant market position even though they are both growing nicely. Is it reasonable to hold XTC looking for a 5 bagger and FSV looking for a 2-3 bagger? I have already taken some profits on both, but am wishing I had let my winners run further. I have probably a 25 year time horizon minimum before I draw down on my portfolio. You have mentioned some other high growth names that are appealing, and I am considering allocating profits to those names. Any thoughts?
Read Answer Asked by Alexander on July 23, 2014
Q: Trade Fill question asked by Robert on July 23/14:

Also, I believe market orders go before limit orders, and the case where a broker is executing both sides of the order (crosses). Publish at your discretion.
Read Answer Asked by Russ on July 23, 2014
Q: Can you please provide insight into how trades get filled based on the bids. As an example, yesterday I had a sell order in on a stock at .92. The stock hit a high of .92 but my order didn't get filled. Obviously another sell order at .92 was filled but not mine. What is the basis for determining who gets filled? Thanks for valuable advice.
Read Answer Asked by Robert on July 23, 2014
Q: As a comment regarding becoming a portfolio analyzing service for subscribers in the future I fear that if/when that happens you will not have the time to address the multitude of questions on this site. And as a result the great service and value here will diminish some.

I often wish people would simply read the questions and answers here and then manage their own ports but human nature for most people is to want someone else to do it for them.
Read Answer Asked by Stan on July 23, 2014
Q: Cramer: I am sure the first "Cramer" comment was well intended and sincere.

But clearly a number of other folks disagree with the need for a Canadian Cramer. I am in the latter camp having tracked many of Cramer's favorites over the years using Globe Investor Gold. Since he has recommended hundreds of stocks I have tended to focus on the ones where he has been over the top - provided the most compelling reasons inlcuding detailed charts - and of course rung the bell, blown the horn, uttered the words "Booyah" many many times, etc. etc. etc.

The performance of my Cramer "paper - portfolio" has been terrible - especially compared to the 5i portfolios and highly rated stocks. Recently Cramer's audience size has cratered dramatically - to the point where the numbers are embarrasing for him and the network.

It would seem that his "customers" have realized that they too are wasting their time and money.

Bottom line here: Beware of Cramer suggestions; and 5i - you are great as is and please don't become Cramer-like. I enjoy making money thanks to you and not losing it as I would have if I had actually bought into his hype.

Cramer reminds me of a mutual fund guy I met years ago whose focus was on getting customers to "like him" as opposed to impressing them with his record of success in helping other clients grow their money. Quite the showman, probably a nice guy and a great person to have a beer with - but not manage my family's money!
Read Answer Asked by Donald on July 23, 2014
Q: I look forward to the day when you can offer individual portfolio reviews. Do you have a time horizon ?
I'm sure many of your subscribers would echo my comment.
Read Answer Asked by Valdis on July 22, 2014
Q: Peter & Staff: Please don't go like Cramer or Motley fool as some people suggested.Your service is great and no conflict.I also have been a Canadian Moneysaver subscriber for a long time.Finally I feel that your service as helped me and my wife to be more prudent with investing our hard earned money.Tks
Read Answer Asked by Guy on July 22, 2014
Q: A subscriber claimes we need a Jim Cramer in Canada in my opinion he is a promoter at best .just ask the investors of deep he recommend it the nite before the ipo the next day on the ipo the owners absconded the the cash and ran off .i settled two years later with five percent of my investment.never watched the show again . Nobody said school was cheap but Cramer as a investment advisor should instead sell hotdogs in new york.
Stan
Read Answer Asked by Stan on July 22, 2014
Q: Peter
I think we need a Canadian version of Mad Money and you are it! If Jim Cramer can do it, so can you.
I sure hope you and your team will decide to review portfolios of your clients in a separate section for a fee.
I think I am way too diversified and would prefer a much more concentrated portfolio. I need help and you guys are the people I trust. As the cliche goes: : a broker is someone who invests your money until you are broke. But in 7 months subscribing to your newsletter I have made more money than I have ever made in 5 years, This belongs in the testimonial section but being a techno-peasant not sure how to put in there,hence why I am posting in the question and answer section. Thanks and keep safe on your bike trip.
Read Answer Asked by Helen on July 22, 2014
Q: I read your comments on tax treatment of US ETNs with interest. I hold ETNs in both my taxable corporate investment account and in my RRSP. Am I subject to both Canadian and US taxes on the profits or do I just pay tax in Canada on the taxable account. I assume there are no taxes on gains from any stock sale in an RRSP. Thanks.
Read Answer Asked by Grant on July 21, 2014