Investment Q&A

Q: While asset allocation is more personal to ones situation whats your opinion on these ETF's for a portfolio revamp or are there better options that one should consider.
Bonds - XBB, U.S. - XSP, International - XIN, emerging markets - VWO, there is also a Canadian allocation and cash but I am not sure about these 4 ETF selections.

Q: Safe Fixed Income Instrument

I am a retiree, and need a safe place to keep money in fixed income instrument. I consider this money as last line of defense. I have a stock portfolio with which I am satisfied.

I kept this money in GIC which pays almost nothing. Also tapering is expected in 2014. Please suggest a financial instrument. If I go back to GIC please suggest how long to tie up the money. I do not need it now. Thanks.

Q: Hello Peter et al.

There have been questions where the subscriber listed all or most of his/her portfolio. I suspect that reflects a need (and an opportunity) for an expanded service from your company to address and give advice on an investor’s total portfolio.

Such service would be in addition to the regular subscription and would necessitate the investor providing his Investment Policy Statement and financial and personal details. Naturally the service would be in addition to the regular subscription service, and at whatever the going fee is for such service. An investor may desire a review every three or four years.

My wife and I have a total of five accounts which I handle as one large portfolio. No doubt some dogs have slipped into the portfolio over the years (my first investment was in 1961 at the age of 26) and I would gladly pay (no idea of the going rate, perhaps a thousand dollars) for a portfolio review and recommendations (about 32 stocks plus 4 ETFs and a couple of Pfds and Cnv. Debs. There are other organizations that provide that service, but I know of none that carry your credibility.

In my view the service would be a separate niche within your company, with the service only open to subscribers of the regular service.

Your choice on whether or not to publish all or part of the above.

Bob

Q: What is your near term market strategy with regards to the Fed set to begin tapering in one of the next four months? Thanks as always.

Q: I have $15,000 in TFSA and I am wondering how to structure it.
Main goal would be income (dividents) and hopefully 7-9% capital appreciation per year. Nothing aggressive, but steady income and some growth.
The problem is the size of the capital on hand, only $15,000.

Q: Is Peter and team going to start another model portfolio for 2014.

Q: Hi in a response to an earlier question you mentioned the main drivers to equities are (1) earnings (2) interest rates and (3) money flows (people going to cash/shifting from bonds to stocks). Where would an investor find information on money flows and how would you use it to inform decisions? thanks

Q: This is more of a comment than a question. It would appear that some viewers would like you to be a a portfolio manager rather that an information source. Kudos for responding to those requests in the manner that you do.

Q: I still own some shares of Poseidon Concepts. I don't know if I can even sell them but is there any point to holding on to them?
thanks. Great service.

Q: hello 5i:
please share your views on the Price/Sales ratio, and what that would look like for one of your A rated stocks versus a B or C. Or, would it be easier to give your guidelines for mature vs growth companies? 5-year ratios for this metric are easily obtained, and I've always TRIED (not successfully) to use Ben Grahams' <0.9. Very difficult to find nowadays; is that just because the market valuation is so much higher?
thanks

Q: Good Morning,

I am wondering is there a single location I can find out which Canadian Companies offer DRIP plans and what is the percentage discount offer. Also is there any other key facts I should be looking at when considering a drip plan also could you discuss the merits of a drip in or out of a tax free accounts. The TD securities rep did know where to look. Thank you again for the excellent service.
mike

Q: Hi, could you please indicate your criteria for your Park & Hold List selections? Thx, Gary

Q: I got a question regarding my LIRA. I have 26 stocks in the account and I am just curious if I have too many or now enough. Also if I am diversified enough or to heavy in a certain sector. MY one rule I have for this account is the company must pay a dividend.

The securities that I own are as follows:

ALA, AGNC, ARX, T(AT&T), BTE, ZWB, BNP, CNK, CPG
DCI, DFN, DD, FTS, FRU, HR.UN, IDX.UN, JNJ, LIQ
MRT.UN, PPL, PKO, POW, REI.UN, SBUX, SPH, WJX

I am above on almost all stocks and have held most of this since April 2011. My lowest holding is 1.15% of portfolio and my largest holding is 10.81 % of portfolio. My general rule is no one stock should be over 5% of portfolio. (SBUX and JNJ have gone up and now break this rule)

What are your thoughts on this portfolio and if you recommend selling anything what would I replace it with long term (15 plus years)

Thanks.

Q: Re: comment posted by William Dec5/13 on Corby class B shares:
Excuse my ignorance but what is meant by the term "coat tail provision"?
Thanks

Q: I have had good success following 5i's advise on stock picking, so much so that my wife has decided to let me invest her rsp savings.(oh oh)I plan on following 5i's model portfolio with a few stock exeptions. My question is I understand that December is a turbulant month because of large investor sell offs for year end results. if you were me, would you wait for January or go for it now.

Q: Hi Peter and Team: Would it be a good time to sell Johnson & Johnson (JNJ, ~75% profit) and reinvest the proceeds in Canadian growth companies. I have sufficient US exposure and the portfolio is balanced.

Q: What is your "park and hold" list?

Would you consider instituting a members' forum (monitored) so members could exchange information as a two-way street?

Thanks for your marvelous service. Especially appreciate that you cover companies not assessed by many analysts.

Q: Would you include BNS, HCG and BAD in your park and hold list? Thanks.

Q: Hi,
In a recent question/answer exchange you cautioned about short term growth for BEP.UN but considered it one of your favorites for a park and hold investment. Could you provide a list of perhaps 10 of your favorite park and hold investments? Thanks

Q: Hi team:
On Berman's call, he mentioned a BMO EFT called the tactical dividend ETF, relatively low risks in terms of dividends portfolio and is well diversified

The BMO tactical dividend ETF is fairly small in size (of assets under management); just started in Oct
I am looking for abit of diversification outside Canadian Banks
and Life co, for dividends and yield and some safety
Please let me know what you think, no hurry

Also, is it true that starting in Jan, each member is only allowed to ask so many questions a year ? I always keep my questions to one or 2 stocks per time, it would be frustrating to stack the questions, thanks!