skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: The TSE was down .28% today. Yet 25 of my 26 stocks were down, with 9 of them (CEU,SYZ,BYD,BAD,SGY,PEY,AVO,DHX,CMG) all being down between 2.3% and 4.5% on relatively heavy volume. I am not worried at all about this, but wonder if you can offer some explanation for why this would happen on one day. Thanks.
Read Answer Asked by Curtis on July 08, 2014
Q: Hi Peter

What have been your favourite books on investing and the markets?

Thank you
Read Answer Asked by Brad on July 07, 2014
Q: Hi Peter and Company:

If one believes that the market is due for a correction and, if they place faith in historic data from years where the U.S.A. is due to hold a mid-term election, one might be wise to liquidate for the third quarter of the year. If a person was to do this, what would be the best place to park cash while waiting for buying opportunities?

Thanks for the advice!

DON
Read Answer Asked by Donald on July 07, 2014
Q: Hi Peter & Team,
I would like to make a comment on stop losses. As you have stated you have to be very careful especially on a low traded stock as someone can "low ball" and steal them away.
A strategy I sometimes employ if I have a winner and want to trim to limit my portfolio exposure is say I have 500 shares, I put a very tight trailing stop loss on 200 shares, check daily, and ride the stock up as far as it will go.
My 2cents. Thanks for you advice and guidance.
Read Answer Asked by gord on July 07, 2014
Q: I was looking at the list of largest short positions on the TSX:
http://www.financialpost.com/markets/data/market-short_pos.html
The list contains a few stocks (both small and large) that you are generally positive on (eg. EFN, BNS, LUN, PWF). Is this a concern or is this just noise an average investor should ignore?
Read Answer Asked by Mike on July 06, 2014
Q: I was trying to search for your views on setting stop losses. As markets and portfolios expand there's increasing concern about significant losses in a sustained downturn. If I'm reading you right, your strategy would be to ensure a balanced portfolio and perhaps lean towards dividend stocks to counteract a dropping market. Do you see any place for setting stop losses? If so, what would be your guidelines. Thanks Graham
Read Answer Asked by Graham on July 06, 2014
Q: Hi Peter & team, someone told me that his "Financial advisor" told him that TFSA (tax free saving accounts) would probably be eliminated by the Government. Reason being that its mean objective of encouraging people to save has not been accomplished. What do you think of this? Thanks, Gervais
Read Answer Asked by Gervais on July 06, 2014
Q: Hi 5i,

My question is on the reliability of forward earnings. From your comments I gather that you often look at forward earnings when evaluating stocks. My question is how reliable are they in general? Do companies tend to be honest with their guidance or more conservative or do they tend to miss the mark. It's nice to see the forward earnings and forward P/E, but only if you think they are good indicators? yeah?

Thanks! Your service is terrific.

Read Answer Asked by Wayne on July 04, 2014
Q: 10:29 AM 7/3/2014

Hi Peter :

Having just read your answer to Doreen July 02 regarding Element Financial EFN you said : "The stock is expensive, but we expect very rapid growth, and would put the management team in our list of Top Ten companies."

So I cannot but ask if you could please list your "Top Ten" Management teams.

Also I, like many others, are eagerly awaiting your Growth Portfolio and maybe trying to anticipate your choices.... any chance at a sneak peek at the list, or some suggestions? Maybe some your Top Ten Management companies will be in the Growth Portfolio.

Always appreciative of your excellent advice.... Paul K.
Read Answer Asked by Paul on July 04, 2014
Q: When speaking about stocks, the terms "buy hold and sell" are commonly used. I think I understand "buy" and "sell" as they seem quite precise but am confused by the term "hold". If a stock is good enough to "hold" in a portfolio why would it not be good enough to "buy"? So. when you or others in the industry use that term, what exactly do you mean?

Thanks for the education and best wishes for a speedy recovery. I hope that the car looks worse than Peter, though.!

Paul F.
Read Answer Asked by Paul on July 04, 2014
Q: Hi Peter,
Did you invite members to meet you some afternoon this summer at a local "watering hole"? I can't recall the date.
Read Answer Asked by James on July 04, 2014
Q: Good Morning,

I would appreciate knowing your thoughts on market timing. Specifically what you think about The Dow Theory and the Schannep Timing Indicator.
Read Answer Asked by Paul on July 03, 2014
Q: Peter & 5i, please include the closing price of the stock you're discussing for reference and context. This is time-saving as sometimes I may not log in until weeks later. Thanks.
Read Answer Asked by Victoria Y on July 03, 2014
Q: Should I liquidate my portfolio (which is largely blue chip, high-yielding Canadian equities) and buy it all back if/when (i.e. when) the market corrects?
Read Answer Asked by Brad on July 03, 2014
Q: What is your opinion of Saskatchewan Pension Plan. Is it a viable alternative to use in your RRSP?
Read Answer Asked by susanna on July 02, 2014
Q: Good Morning
Quite a few years ago I began investing through full fee global mutual funds. I graduated to purchasing individual stocks through a discount brokerage account but held on to the mutual funds which now comprise about 15% of my portfolio. The mutual funds have performed OK, nothing spectacular, returning a little over 9% annually and have doubled in value. The MERs are high at about 2.75%. I would dearly like to switch into global ETFs. If I sell the mutual funds over a number of years, I will limit the capital gains tax bite to about 15%. I calculate that going forward if the mutual funds average 7% then the ETF should average 9.5%. I arrive at this by adding the 2.75% MER back onto the 7% gain and then subtracting .25% for the ETF MER. At this rate it will take 8 years to recover the 15% lost to capital gains tax and achieve the ongoing benefit of lower fees. Is this a valid strategy or am I missing something?
Thanks
David
Read Answer Asked by David on July 02, 2014
Q: Hello, Peter
When a company grant stock options, do they have by "law"to:
1/Disclose the price granted
2/ Disclose the strike price
3/ announce within a certain limit of time after the said grant

And if I may, when insiders of a double listed(US and CAN)buy or sell shares, do they have to "press release" the operation and if yes how much time are they are given to announce the operation.
With much appreciation for your answer.
CDJ
Read Answer Asked by claude on July 02, 2014
Q: Speedy recovery Peter and a Happy Canada Day to both Ryan,you and your families. My Model Income Portfolio weighting is a bit out of sorts but rather than try to balance now I am retiring at the end of September and will getting a substantial amount of cash that can be used to rebalance then. Are you comfortable with this time frame? Thanks for all you do and also on a side note can you post a map of your journey in the fall so we can follow you as you pedal across Canada.
Read Answer Asked by Alan on July 02, 2014