Investment Q&A

Q: Hi peter and team,

I am hoping you or one of the other members can answer. I have 4 nieces and nephews all recently graduated from university and they are all trying to figure out how to balance out paying off debts versus making investments etc. Is there one or two introductory books that would provide them with some good advice and principals as they start to move into their working careers. I read the Wealthy Barber but i am wondering if there are others out there.

Thanks again,

Q: The previously hot health/biotech and tech sectors appear to be losing momentum with money flowing away from them. Do you have any indications as to which sectors the money is flowing to or is it just going to the sidelines?
Bryon in Elira

Q: hi peter,
the membership fee can be claimed for income tax? thanks.

Q: I would like to balance my stock portfolio by sector. I notice that your model portfolio doesn't identify the sector to which each stock belongs. Would it be possible to add this information? If not what would be the best place to get this information for stocks? Finally, how many sectors should a balanced stock portfolio comprise?

Q: Hi Team... a quick question regarding Options trading. Can Puts and Calls be exercised only on their Expiration Date or can they be exercised at any time prior to expiry?

Q: Hi Peter
I have followed you since before your Sprott days and always appreciated your insight and comments. I am traditionally a mutual fund investor who is now concentrating on individual stocks. Please advise the best investment sites to find the following info to develop and maintain a dividend oriented portfolio. I need for both Canadian and US companies.
PE and average PE for last 5 years
PEG and average PEG for last 5 years
CAPE and average CAPE for last 5 years
thanks for your help.

Q: Hi 5i team

I am look to purchase a diversified portfolio of stocks soon, and I was wondering if you had any recommendations for where to allocate the stocks in my two registered accounts (RRSP and TFSA). I have about 83K in my RRSP and 32K in my TFSA. Could you recommend a strategy, if any, with regards to the following factors:
(A) Growth stocks vs. Dividend stocks (or Dividend Growth stocks)
(B) Small, medium and Large cap stocks
(C) should each account be diversified to some degree with the 10 TSX sectors, or does it even matter which account is chosen if it's all for the same investor.

I am primarily looking for growth with a 20-year time frame

Thank you for the great service

Q: Hi 5i Team;

I cannot resist asking you this question, even though it may be controversial to request a comment on another expert's opinion.

Brian Acker, a regular participant on the BNN Market Call shows, has commented on a speech made by Bank of Canada governor Stephen S. Poloz. The speech was made to the Halifax Chamber of Commerce, and reasons a dim future for the Canadian economy.

My strategy to date, has not included US investments.

With the fall of the CDN $ have I missed the boat for US investments, considering the speech by Governor Poloz?

Your opinion on the described future is greatly appreciated.

Please publish at your discretion.

Q: Hello Peter
I bought NorthWest Healthcare Properties REIT (TSX: NWH.UN) in 2013. I now think it is structured as a Limited Partnership because they pay "distributions" and not "dividends", but their website doesn't actually say so. Are all .UN listings limited partnerships?

Their website does say : "If necessary an extra distribution will be declared on December 31 each year such that the REIT will not be liable for tax that year."

They also say : "In 2013, 100% of the distributions were tax deferred, by reason of the REIT’s ability to claim capital costs allowance. The adjusted cost base of the Units by the Unitholder will generally be reduced by the non-taxable portion of the distribution."

Their table on the website shows "Total Taxable Income Per Unit" is zero for 2013, but it says the amount is shown in Box 42 [on the presumed T-slip]. The distributions I have received are evidently a "Return of Capital".

Does that mean the distributions I received are not taxable in any way and does that mean they won't be issuing a T-slip to include in my tax return? I haven't received one yet and I have received no answer back from my enquiry to the company. I am ready to file my tax return now but don't know if I should wait till nearly the end of April in case they do send one.

Many thanks........... Paul

Q: Further to my question of March10/14, my wife owns Mawer Global Small Cap fund in her TFSA. She was advised by the company that no T3 tax slips would be issued for this fund, as mutual fund investments that are registered(RRSP & TFSA) do not receive T3 tax slips. If this is correct, does this mean that if she decides to invest in individual stocks of global companies in her TFSA instead of using the mutual fund, she will not receive a T3 tax slip either?

Q: Breaking news - BMO is now offering five-year fixed mortgages at 2.99 per cent, slashing its rate from 3.49 per cent.
Exit comment/question - "Say what?!"

Q: Hello Peter...Well, I'm better diversified by sector, now. And I'm focusing on another aspect of diversification of TSX stocks....market cap. This dividend/growth portfolio is made up of 46 companies with 25 large cap, 11 mid cap and 10 small cap. By small cap, I use an upper limit of $1.5 billion, and then mid cap, $5.0 billion....and all the company names are ones reviewed or frequently commented on/answered about. Now the question - does this diversification my market cap seem reason? Or put another way, for a right-on allocation by sector, does this market cap holds okay ? (The main reasons the number of holds is 46 are a result of purchasing matching/similar like securities, Goldcorp and then the smaller cap Primero, and in case of info tech, holding some half positions in 4 companies.)..........Continuing towards 5iR-ing it.
Thanks....Tom M

Q: Hello Peter
I have a policy that no individual security should exceed 5% of the value of my total portfolio. Normally when a stock reaches 5.5% I trim it back to 5% and invest the proceeds in the fixed income portion of my portfolio to maintain a 30% fixed income, 70% equity allocation. Over the past couple of years I have needed to trim shares of TD, RY, BNS, BCE, T, TRP and CU as they have all exceeded the 5% threshold. These stocks are held in an open account, so capital gain taxes must be paid on the dispositions. I know that the value of my portfolio would currently be higher if I did not follow this policy. Is this policy flawed? Should I just let the winners run?
Thanks David

Q: Your model portfolio in small print, for example, auto Canada p&l for 2014 -4.1. I was surprised to see that it was in a minus category since it was the best stock in the TSX. Is there a difference between a March 1st list February PDF and a March 1st 2014 Excel with no list? It has nice big print, and is easier to read. Maybe I am missing something. Please advise.

Q: Hello Peter...I'm interested in learning/improving about entering and exiting holds of stocks. And came across books by Alexander Elder....showing up on Amazon and at the local library. At first glance, the basics are easy to understand, and provide good building blocks. For me, I'll need to show more patience.

Thought I'd mention this resource reference for others.....Tom

Q: Dear Peter and fellow 5I team members, I, for one, appreciate your gentle and courteous responses to members who in the opinion of some ask too simple questions too often. We are the very people who need your conflict free investor oriented advice; I would be unhappy if you felt the need to separate out the beginners you are currently educating to a "forum" with its own agenda.
Thank you, again for your unique and valuable service.

Q: Hi Peter and team,

I have been doing quite well in the markets for the last two years or so, thanks in large part to your outstanding service. I have been an active member from the beginning.

My question is, as of today, if there was one or two sectors you would take profits in, which ones would they be?

Thanks

Stephen

Q: A response to Evan on a forum for discussion.

I have monitored a discussion board for 11 years. I know most have this problem

"head and shoulders above the type of audience that plague other investing sites. "

It is a time consuming exercise to monitor discussion and you must be prepared to eliminate any possible problem. I have the power to delete posts and/or ban posters. I also may be freer to eliminate problem posts/posters than the 5i team might be. I believe my forum is known for no conflict and especially no politics. I do not have any expertise that the 5i team could offer.

5i--I separate this in case you want not to publish this link--I am neutral on it.
I am at http://www.investorvillage.com/groups.asp?mb=6781&pt=m
Bryon in Elmira

Q: hi peter, i currently have my pension in stocks that are split between US and International companies the last year; after the good run they had last year, as the TSX was lagging, but still gaining, i am wondering if know is a good time to re-invest in the TSX and switch to totally TSX equities. Basically i am trying to decide which market has the better potential for large cap stock gains over the next 12 to 18 months?

thanks hugh

Q: Have you ever considered creating a 5I membership forum for members to discuss/debate stock holdings? There are some savvy subscribers here no doubt where it would be beneficial to hear some continued feedback on stocks bouncing ideas/thoughts etc; back n’ forth per your question/answer section, call it an added 5I advantage within your growing readership. Less experienced investors could sit back and observe taking notes/pointers – a learning forum if you may. Of course, having it closely monitored by Mr. Hodson and the 5I team to answer/clarify pertinent queries on stocks would be the main root of creating such a forum. There seems to be a short term outlook by some members on here as is evident by the barrage of questions on stocks on a weekly sometimes daily basis, there seems to be many repetitive questions on the favorite core of stocks with a short term focus which isn’t what 5i sets forth. I’m sure a forum like this might break away some of 5I’s time to give us more updated reports and perhaps blast out by mass email when a company reports on a quarterly basis/earnings etc; that you know will bombard with questions (why not hit many members with one mass email?). I’m sure there wouldn’t be a whole lot of policing to enforce on a forum with certain privileges revoked if the forum got out of hand as this seems like head and shoulders above the type of audience that plague other investing sites. I can’t be the only one to pose this question, your thoughts along this avenue would be appreciated. Thank you.