Q: For someone retired, age 60, no debt, no pension other than Gov't, and capital of 1.5 million, what would be your recommended asset allocation between cash, bonds, stocks etc and which, if any, of your recommended portfolios (or both as the case may be) would be appropriate in the equation. Thanks as always.
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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: Where to park cash in my trading accounts? I find myself holding large amounts of cash in my trading accounts waiting for a market pull back that hasn't really happened! This cash sits "not invested" Do you have any suggestions on where I could park this cash inside my trading accounts that's flexible for trading while earning income? I love the 5I concept and I have done very well following the 5I recommendations, thanks.
Q: Hello- is there a way to see a list of earnings estimate revisions (up or down)on a daily basis?
thanks
thanks
Q: Hi Peter and the 5i team,
I was wondering what your thoughts are on Home Bias and the ideal allocation to Canadian equities? A typical couch potato strategy evenly allocates 1/3rd to Canada, US, and International. Some prefer an even higher weighting to Canadian equities.
In July 2013, Mawer introduced a Global Balanced Fund (http://www.mawer.com/knowledge-centre/mawer-blog/the-evolution-behind-the-mawer-global-balanced-fund/) with a 2.70% weight to Canadian equities because they're "not convinced Canadian equities should dominate the equity portion."
I realize having a higher weight to Canada might lower some risk (ie. currency risk, familiarity with Canadian companies) but when we look at managing long-term risk and growth in a portfolio, does it still make sense to weight Canada at 1/3rd in your porfolio?
Thanks again,
Arneh
I was wondering what your thoughts are on Home Bias and the ideal allocation to Canadian equities? A typical couch potato strategy evenly allocates 1/3rd to Canada, US, and International. Some prefer an even higher weighting to Canadian equities.
In July 2013, Mawer introduced a Global Balanced Fund (http://www.mawer.com/knowledge-centre/mawer-blog/the-evolution-behind-the-mawer-global-balanced-fund/) with a 2.70% weight to Canadian equities because they're "not convinced Canadian equities should dominate the equity portion."
I realize having a higher weight to Canada might lower some risk (ie. currency risk, familiarity with Canadian companies) but when we look at managing long-term risk and growth in a portfolio, does it still make sense to weight Canada at 1/3rd in your porfolio?
Thanks again,
Arneh
Q: Hi 5i Great article by Ryan Modesto,I think every investor should read this article and the next time they go to look at their portfolio read Ryans article first then look at the portfolio then read his article again ( good peace of mind )
Thx 5i for good solid advice
Thx 5i for good solid advice
Q: Good Morning Peter -- and all the 5 I team as well!
I have a general question about how "not" to time the market, and how to exercise the better part of wisdom if one is interested in growth over present dividend yield.
For instance, ... if one holds a fairly decent company, but its sector happens to be out of favour at this time, and hence the stock price is flat lining, or even reversing, would it make sense to pull out that money and re-deploy it into other sectors that are favourable and ride another sector wave for a time -- or is it better to stand and hold, through good times and bad.
It seems counter-intuitive to me to watch dollars erode while other sectors revive and feeling helpless not to participate because cash is already tied up. I see the logic of a long term hold, in one sense, if someone has many years to spend in the investment market. But, in a shorter term context, for instance two years or less, is there any proven statistic that says you're better off standing your ground?
In one general example, as I watch profits erode from the Tech sector while the Energy sector takes fire, is there any point in holding on to tech companies that are flat lining?
In general, I think I know what your answer would be in terms of overall investment strategies. And yet, I still wonder, what your strategy would be as a portfolio manager. Would you hold, through thick and thin, or would you re-assess and re-allocate as each sector takes favour especially given a shorter term horizon?
As ever, I appreciate your thoughts and opinions, as they have guided me very well through thick and thin. Even before the days of signing up to this newsletter, which is coming up to my 6-month anniversary with 5I, I garnered great wisdom and opportunities through watching you on BNN -- ACQ being only one of many opportunities that you led me to! I always listen closely to what you say. Thanks.
I have a general question about how "not" to time the market, and how to exercise the better part of wisdom if one is interested in growth over present dividend yield.
For instance, ... if one holds a fairly decent company, but its sector happens to be out of favour at this time, and hence the stock price is flat lining, or even reversing, would it make sense to pull out that money and re-deploy it into other sectors that are favourable and ride another sector wave for a time -- or is it better to stand and hold, through good times and bad.
It seems counter-intuitive to me to watch dollars erode while other sectors revive and feeling helpless not to participate because cash is already tied up. I see the logic of a long term hold, in one sense, if someone has many years to spend in the investment market. But, in a shorter term context, for instance two years or less, is there any proven statistic that says you're better off standing your ground?
In one general example, as I watch profits erode from the Tech sector while the Energy sector takes fire, is there any point in holding on to tech companies that are flat lining?
In general, I think I know what your answer would be in terms of overall investment strategies. And yet, I still wonder, what your strategy would be as a portfolio manager. Would you hold, through thick and thin, or would you re-assess and re-allocate as each sector takes favour especially given a shorter term horizon?
As ever, I appreciate your thoughts and opinions, as they have guided me very well through thick and thin. Even before the days of signing up to this newsletter, which is coming up to my 6-month anniversary with 5I, I garnered great wisdom and opportunities through watching you on BNN -- ACQ being only one of many opportunities that you led me to! I always listen closely to what you say. Thanks.
Q: Stocks move after earnings based on what the revenue and earnings are relative to the consensus of what the analysts thought they were going to be. How do we find out before the facts what that consensus is?
Q: Peter what happen4ed to the TSX at the close Down 268 at 4:00?
Stan
Stan
Q: I followed Danielle Park's blog " Juggling Dynamite " for the last 5 years. On April 17 she posted: " so Q 1 earnings and revenue numbers are ugly with 1/3 of S&P companies missing earnings targets and 51% have so far missed their sales forecasts."
Are you familiar with Danielle? For the past 2 years I have been 50% in cash in my investment account waiting for the big correction that she professes must come to end the cyclical bear market. I regret missing the gains of the past 2 years, but at the same time I am fearful of the pending correction < if I only knew when >. What does one do in this situation? Please comment, thank you.
Are you familiar with Danielle? For the past 2 years I have been 50% in cash in my investment account waiting for the big correction that she professes must come to end the cyclical bear market. I regret missing the gains of the past 2 years, but at the same time I am fearful of the pending correction < if I only knew when >. What does one do in this situation? Please comment, thank you.
Q: should i have stoploss's on my stocks and what percentage. thanku
Q: Hi! I have a question on how to purchase low volume stocks. They often exhibit substantial differences between the Bid and Ask price. For eg, buying 1500 shares of DSG today at the market price would have given me an immediate "loss" of $210 v. the Bid price. Is there a way of avoiding this, perhaps by entering a Limit price? I'm not sure what that price should be in relation to the Bid/Ask. Comments please!
Q: This is in response to Ronald's question re: an earnings calendar source. Both Scotia iTrade and TD Waterhouse (I'm sure others offer them as well) have a research/quotes tab within the account. Click the tab and a calendar with expected earnings releases, dividend issues, stock splits etc. will come up.
Q: I am unable in finding a website that provides earnings calendar for TSE stocks, can you help? Thank you for your response.
Q: I need some advice. I maximize a company managed RRSP program because the co matches my contributions however the manager (Mutual Life in this case) only offers expensive mutual funds. I also invest in RESP's however I've been told the RESP won't allow equities, ETF, etc so I am stuck with expensive mutual funds again. Do I just leave the company plan and take my cash tot he open market? Do I quit the RESP think and do the same? What advice do you have??
Q: Hi Peter.
Came across this great essay you recently penned that I found on the Vitess web site. Thought other members would enjoy!
http://www.vitess.com/2014/03/cash-drugs-etc-not-appropriate/
Keep up the great work and good luck with your training this summer!
Cheers,
Scott
Came across this great essay you recently penned that I found on the Vitess web site. Thought other members would enjoy!
http://www.vitess.com/2014/03/cash-drugs-etc-not-appropriate/
Keep up the great work and good luck with your training this summer!
Cheers,
Scott
Q: Regarding portfolio weightings: The Globe and Mail portfolio will tell you what % of your portfolio any given stock is. Entering all stocks with your buys and sells into one portfolio will give you the %s across all accounts, but sector weighting is not available. Still, not bad for a free service.
Q: Peter
I sent question earlier with a URL to access a "Free" look pdf of quantitative Analysis on how Investor behavior timing the market & selecting advisors whose primary aim is not their client, gives poor results.
The URL got hashed up pretty bad.
To find this PDF put "QAIB.COM/public" into google. The second item you get has a tag headline Freelook pdf. If you click on it
you will immediately get a popup banner at the bottom of your screen asking if you want to open or save. Either way you can save it.
Sorry for the miscue, but it is worth a read. They analyzed a ton of data on mutual fund in & outflows to assess how investors & their advisors performed.
Regards
Ernie
I sent question earlier with a URL to access a "Free" look pdf of quantitative Analysis on how Investor behavior timing the market & selecting advisors whose primary aim is not their client, gives poor results.
The URL got hashed up pretty bad.
To find this PDF put "QAIB.COM/public" into google. The second item you get has a tag headline Freelook pdf. If you click on it
you will immediately get a popup banner at the bottom of your screen asking if you want to open or save. Either way you can save it.
Sorry for the miscue, but it is worth a read. They analyzed a ton of data on mutual fund in & outflows to assess how investors & their advisors performed.
Regards
Ernie
Q: Regardng Mike's question concening monitoring holdings, RBC Direct Investing has a tab which will give you the dollar amont and the percentage of portfolio for stocks held in all accounts. I find this quite useful. It doesn't, however, have the stocks categoized in sectors. But, for no cost it is a pretty useful tool.
Q: Re: Mike's question regarding portfolio consolidation – Publish if you think it will be both useful and comprehensible !
I have found a couple of things helpful to monitor our 8 portfolios (TFSA's, Rif's, RSP's, Unregistered accts).
1. We use TD's Webroker and in addition to the formal individual account information it reports and updates daily, it provides a Portfolio Management feature that allows you to manually set up your own portfolios. Other brokerages may provide the same. This is useful, not only because you can set up a consolidated detailed portfolio (not provided by TD in their formal reporting) but also because you then have access to additional reporting analysis that is not available on the formal individual account detail provided by TD. Once these portfolios are set up, providing you are not a frequent trader, they are easy to maintain – just have to enter in buys and sells as they occur. I have set up one portfolio that is a consolidation of several individual ones, to see the overall picture of all accounts. I also set up individual portfolios which mimic the individual formal TD accounts in order to take advantage of the additional analysis info available through the reporting features.
2. Unhappily, however, the reporting does not (in my opinion) provide a good analysis feature for sector weightings . After (finally !) paying attention to Peter's repeated insistence that sector weightings were critical to successful investing, (Thank you, Peter !), I searched for software to provide this but with no luck. So, I had to bite the bullet and set up a custom spreadsheet to give me this information . I download each account direct from TD Webroker (they provide this capability – I assume other brokerages do, too) . I then determine which sector the stock belongs to (I use a total of 11 sectors and give each sector a number). I have a column in the spreadsheet where I put my assigned numerical value for each stock as well as a column that shows the name of the sector. Using the sector identifier, I have programmed the spreadsheet to then calculate for each account what the total weightings are for each sector. Weightings could also be calculated for the total of all accounts but I don't bother since as long as each account is weighted appropriately (I do some variations, depending on what goals I have for that account), then that's enough for me. This was something of a pain in the neck as it has been a good number of years since I have worked with spreadsheet software, however, now that it is done, it only takes about 15-20 minutes to download and to adjust, if new stock buys/sells have to be sector categorized. I do it on a weekly basis to keep up-to-date . It has made a BIG difference in my ability to keep on top of things in a time efficient manner.
I have found a couple of things helpful to monitor our 8 portfolios (TFSA's, Rif's, RSP's, Unregistered accts).
1. We use TD's Webroker and in addition to the formal individual account information it reports and updates daily, it provides a Portfolio Management feature that allows you to manually set up your own portfolios. Other brokerages may provide the same. This is useful, not only because you can set up a consolidated detailed portfolio (not provided by TD in their formal reporting) but also because you then have access to additional reporting analysis that is not available on the formal individual account detail provided by TD. Once these portfolios are set up, providing you are not a frequent trader, they are easy to maintain – just have to enter in buys and sells as they occur. I have set up one portfolio that is a consolidation of several individual ones, to see the overall picture of all accounts. I also set up individual portfolios which mimic the individual formal TD accounts in order to take advantage of the additional analysis info available through the reporting features.
2. Unhappily, however, the reporting does not (in my opinion) provide a good analysis feature for sector weightings . After (finally !) paying attention to Peter's repeated insistence that sector weightings were critical to successful investing, (Thank you, Peter !), I searched for software to provide this but with no luck. So, I had to bite the bullet and set up a custom spreadsheet to give me this information . I download each account direct from TD Webroker (they provide this capability – I assume other brokerages do, too) . I then determine which sector the stock belongs to (I use a total of 11 sectors and give each sector a number). I have a column in the spreadsheet where I put my assigned numerical value for each stock as well as a column that shows the name of the sector. Using the sector identifier, I have programmed the spreadsheet to then calculate for each account what the total weightings are for each sector. Weightings could also be calculated for the total of all accounts but I don't bother since as long as each account is weighted appropriately (I do some variations, depending on what goals I have for that account), then that's enough for me. This was something of a pain in the neck as it has been a good number of years since I have worked with spreadsheet software, however, now that it is done, it only takes about 15-20 minutes to download and to adjust, if new stock buys/sells have to be sector categorized. I do it on a weekly basis to keep up-to-date . It has made a BIG difference in my ability to keep on top of things in a time efficient manner.
Q: Hi Peter & Ryan
You may have seen a quantitative analysis of Investor Behaviour's contribution to results, along withAdvisor contributions. A sample pdf here:
http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CEMQFjAB&url=http%3A%2F%2Fwww.qaib.com%2Fpublic%2Fdownloadfile.aspx%3FfilePath%3Dfreelook%26fileName%3Dadvisoreditionfreelook.pdf&ei=mSJNU6SKEKep2gXCoIHwAg&usg=AFQjCNFwWBetw8xOGdROK8RQS4BwUts0Hg&sig2=-lpwYJX6Bs3EFHAV-aUgvA&bvm=bv.64764171,d.b2I
It is a long read but makes many good points which appear often in your Qs&As with quant backup. It has a soothing tone.
Post to view at your discretion
Regards
Ernie
You may have seen a quantitative analysis of Investor Behaviour's contribution to results, along withAdvisor contributions. A sample pdf here:
http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CEMQFjAB&url=http%3A%2F%2Fwww.qaib.com%2Fpublic%2Fdownloadfile.aspx%3FfilePath%3Dfreelook%26fileName%3Dadvisoreditionfreelook.pdf&ei=mSJNU6SKEKep2gXCoIHwAg&usg=AFQjCNFwWBetw8xOGdROK8RQS4BwUts0Hg&sig2=-lpwYJX6Bs3EFHAV-aUgvA&bvm=bv.64764171,d.b2I
It is a long read but makes many good points which appear often in your Qs&As with quant backup. It has a soothing tone.
Post to view at your discretion
Regards
Ernie