Investment Q&A

Q: In the context of geographic diversification of a portfolio, would holdings in a Canadian company with significant operations in and revenues from foreign countries be a reasonable proxy for direct holdings in foreign countries' equities? e.g. Ag Growth International / AFN or WSP Global?

Q: Hi Peter,

Is it time to start picking away at BNS/TD or is there more pain to come. Thanks for all you and your team do for us less experienced investors.

Carl

Q: Peter and Company.... General Question
With great restraint I have resisted from buying at some very attractive prices during this down market.
Waiting to see a bottom.
I'm totally aware that anything sold there had to be a buyer.

My Question is... Who are these buyers right now?

Thank you
Dennis Mc

Q: With the current slide in the Cdn Oil Sector, and with the likelihood of the US economy to continue to strenghten, US equities are looking more and more interesting to add to my portfolios. My question is in regards to US stocks that pay Divs in US dollars. What is the industry practice in terms of dividend distribution? Would the dividend payout be at the exchange rate of the date of distribution, or is it fixed to the rate set at the date of purchase. If the latter is the case, who absorbs the differential? Lastly, can you offer input as to the merits and / or pitfalls of Canuck retailers ( such as myself) buying US stocks? Thank you, as always, for a terrific service ... particularly in volatile times as these.
Rick

Q: Just wanted to clarify are dividents pegged to a certain share price? I notice that that dividents for SGY are currently almost 10% since the share price is down to $6. Will the dividents keep going up as the share price comes down..Can the company sustain this?

Q: Hi 5i team, I also own Stantec and I applaud M S's support of Doctors Without Borders. It is one of the charities I support. I also supported Peter's cycling run. Hope he did too. Henry

Q: Hi guys its easy to look back now and say I should have sold some of my winners earlier to have a cash position to buy more now with this correction but if that wasn't the case what does one do now, just wait it out, is buy and hold wrong? Thanks, Nick

Q: Hello 5i,
I’m in effect building my own mutual fund and have been studying portfolio asset allocation recently. My portfolio is evolving over time and looks like it will contain approximately 80 to 90 stocks upon completion, which is 10 years away. The covariance between the different asset classes and beta of the individual stocks is currently where I want it to be. My concern is the original set up of 50% Canadian stocks and 50% world; I also have a break down within ‘world’. I’m happy with the way the overall portfolio is taking the current pull back and would like to make it even better.
The question is:
To reach the optimum setting at the higher level (world), what should I be allocating percentage wise?
Your help is appreciated,

Q: Hi - can you help me understand a few things about this type of correction?
1. Who would be doing the majority of the buying on these incredibly volatile days? Is it primarily institutions that are moving these markets?
2. What is the impact of ETF and mutual fund rebalancing on market movement? Presumably every index-based fund has to buy and sell the same securities at the same time to keep mirroring their index. Would this not magnify normal market movements?
3. Is there any advice specific to retail investors that can help to minimize the impact of this volatility?

Q: I have sold a few losers in the last month and now have ample cash. Given the recent drops, is there a time limit before I can buy back a stock at a lower price. Any tax problems?

Q: Probably not the best time to ask this given all the current excitement buy how do you guys determine which stocks and how many you cover and do you consistently try to weed out the weaker companies (c rating and below?) and replace them with stronger options?
Is there a fixed # of stocks you will cover and what criteria do you use to drop a stock?

Q: Hello,
Just wondering if I could access the webinar that I missed 4 Oct with Colin Ritchie on estate planning?
Thanks

Q: A graph showing the "wall of worry". Post if you feel members might find it of interest.

http://finance.yahoo.com/tumblr/photoset-depicting-the-wall-of-worry-with-one-chart-its-124027988.html

Q: Please give your opinion of so called "robo-adviser" investment providers. Are there any Canadian ones out there?

Q: Hello,
If I buy an ETF such as XIU now, in the latter part of 2014,
I will get only the December dividend payment. Will I, however get a 2014 tax slip showing all the distributions for the entire year?
If so, at what date in December do I have to sell the ETF to avoid getting this tax slip?
Do these rules also hold true for ETFs held in the US such as EWU or VGK?
Thanks for your help.

Q: Advice please on weathering this first time correction or worse for a rookie DYI investor (not my day job.)

I appreciate your calming replies about the fundamentals of the economy and the companies you comment on.

I have made only a total of 6 or 7 buys this calendar year and 1 good buy GWO offsets a few poorly timed purchases HSE, TA, SGY AND WCP

IN TOTAL IF I SOLD IT ALL, I would break even today, bearing in mind this is all together only 5 to 10 % of portfolio, would you suggest

getting rid of it all and waiting 30 days (by the way if I sold for a loss today when is the 30 day limit for claiming a capital loss? )

OR waiting things out because my selections above are fundamentally sound and I have a long time horizon (> 10 yrs )

thank you for the support !

Q: I have read with interest how many of the comments during this downturn refer to selling positions now. It is very important for investors to realize and remember, that it is during these downturns that the "smart money" begins to buy, not sell; perhaps not today, but soon. A 10% correction will take the TSX to around 13150, the DOW to 15600 and the S&P to 1800 and that is when there will be bargains to be had. Don't sell during these times; re balance your equities and fixed income and get your cash back in...just a thought :)

Q: On Oct 6 James asked if it is a good idea to hold dividend stocks in an Rsp.
Do you agree that if a senior's OAS is clawed back then he should hold dividend stocks in a Tfsa and or a Rsp in order to reduce the clawback?

Q: Peter, there are a couple of errors in your graph. Since the yellow line is derived from the red and blue; it must always be between them. Hope the cockroach theory doesn't apply.

Q: Block trade question of Ernie of Oct 9/14:

Available as end of day report:

http://www.financialpost.com/markets/data/market-block_trades.html