Investment Q&A

Q: Hi Peter, if Q3 is going to be scaled back increasing interest rates and making debt harder and more costly to maintain, what sectors / industries will be hardest hit? How should I invest to profit from this decline? Short equities which will be hardest hit by this? or buy companies which will benefit from this decline?

Appreciate your thoughts as always and thanks. Ken

Q: Peter and Company,
Regarding the halting of trading yesterday... DirectCash DCI-T
You may choose not to post this . ... to ignore my comments.... or simply delete them.
Either way I feel I must vent my frustrations.

I am tired of companies such as ‘Veritis Investment Research’ that have the power to release statements and targets for a stock, but unless you are a “client” of theirs, there is no access to this breaking news or the material evidence to substantiate their claims. The claims and reports that are made by these Investment Researchers can carry so much impact it should be compulsory to make these available to the public and let the share holders decide what to do.

When the panic orders are submitted, after news, and in turn the stop loss orders are set in motion, all this can result in a very unrealistic price for a stock. The same can happen in reverse for a tid-bit of positive news as well, be it true or unfounded.

Question: When The Investment Industry Regulatory Organization of Canada places a ‘halt trading’ on a security is the company that made the ‘claim / report’ that caused the repercussion to halt trading “investigated” ?
It would very be interesting to know if that company or ‘any’ members or staff of that company may have had any ulterior motive, such as shorting a stock in question for their own gains.

I love 5i Research where members can get Totally Unbiased Informative answers to questions. Thank You. Dennis

Disclosure: yes, I do own a small holding of DCI-T

Q: I tried to find Veritas on the net and could not find who or what they do.? could you enlighten me on this name. You used it in conjunction with a question about DCI(Direct Cash)

Q: Peter; I own FEZ for Euorpean coverage. With the German election Sunday should I sell it now and wait for results ? Thanks. Rod

Q: Question regarding FIXED INCOME component of a portfolio, other than the obvious like HISAs and bonds, what else belongs in this category? Prefs,REITs,MICs?

Thanks
Ron

Q: Hi 5i people. This is a follow up question to one asked by Ray regarding QE. No one seems to be worried about the consequences of QE. It's a party, let keep going! The FED's balance sheet is now above 3 trillion (with a T). Could we please pause for a moment and ask what happens when they unwind that or how are they going to do it? Are we not at least robbing Peter (tomorrow) to pay Paul (to-day)? Henry

Q: keep up the good work people -i like to look at the part of my portfolio that i titled hodson - lots of green - i like green.
have you looked at the brian acker model price guy stock evaluation using his ebv lines ? i have followed this for a couple of months and it seems to work on a lot of the better valued stocks . any thoughts on this
thanks
ed

Q: I'm 81, my wife 65. We are not rich but have assets of over a million dollars in our cash, investments and residence, ample to last us the rest of our lives. However our pensions are modest so our investments are 100% in 30 dividend paying equities. The mix is about 22.5% oil, 17.5% pipelines, 12.25% power, 8.25% telecom, 20.8% banks, 5.4% other financials, and 13.2% industrials. We are not greatly concerned about growth but still add almost half the dividends to purc hase stocks. Is this a reasonable course to set given our age? I should add that the funds are in the BMO Investment plan and, at $9.95 a trade, I do not hesitate to dump a laggard, and I have relied on your advice to a very considerable degree for purchases. Thank you so much for this great 5I program.

Q: Hi: I am new to 5i. I am having trouble with a quick view of the daily questions. Although I do know the name of the companies for a lot of symbols, many I don't have a clue. Although I know I can look them up (which is not an quick solution), I would like to see the name of the company and the symbol both shown. What do you think? Have a good day.

Q: Pharma stocks such as VRX and others did not participate in the rally yesterday after the Fed announcement. Any reason for the sector to underperform in this new environment?

Thanks Darcy

Q: Hi a little of the beaten track ,but do you guys have any investment book recommendations . Ones that are worth a read

Thanks in advance
David

Q: Hi Peter & Team,
thanks for your advise on the compossition of my RIF.
As a follow up question I would like your view on replacing my fixed income portion from bond ETFs to Utlity, Prefered stocks or any other similar lower risk higher dividend ETF.to enhance my potential return with a lower risks profile.
Thanks a lot for your excellent advise.

Q: Allow me to be the first to ask, the Fed is not tapering Bond buying, good or bad for equity? Most seemed to have $10-$15 billion 'priced in' so the obvious initial reaction is that stock will rally (they seem to be doing so as I type this question), however, the fact they are deciding to do nothing makes me wonder, just how bad IS the US economy? Should this really be considered a good thing for equities?

Thanks!

Q: Hi Peter and staff, we've been with you since Jan 2013, thank you for your excellent service - my wife and I have done very well with your recommendations. We were wondering when you do updates to company reports if you can show the ratings change + or (-)? - just a thought. Many thanks.

Q: Hi Peter and the Team,
I would like to have your opinion and advise on my plan for my RIf. 200K and I do not intend to withdraw more than the legal annual requirement about 7%. My goal is to protect my capital therfore expect a 7% annual gain.

Cnd. Equity 40%: TD Cnd. Index 16%, Mawer Cnd. Equity 12%, RBC O'Shaughnessy All Cdn Equity 12%.
US Equity 20%: VUS 10%, O'Shaghnessy US growth 10%.
Global Equity 20%: VEF 10%, Mawer Global Equity 10%.
Fixed Income 20%: CBO 10%, VSB 10%.

I would like your views on the composition of this portfolio, my expectations and my choice of investments.

Thank you so much for your excellent service.
Regards

Q: What is your opinion on selling "cash covered puts" as a way to generate additional income? Thankd

Q: Hello 5i team. I've noted that a number of typical 'dividend stocks' seem to have haled their downward momentum and are up the past few days ... e.g., AQN, BCE, CPX, NPI. Is it premature to buy back into some of these? Also noted that 10-year treasuries have pulled back from their flirtation with the 3.00% level and were at 2.78% today.

Keep up the excellent work you're doing for your subscribers.
Tom

Q: Hi do you suggest paying off a rental property or putting the same money into some of your A stocks some advise keeping a mortage on a rental since some of the interest is tax deductible

Q: I would like to know if your model portfolio is a long term buy and hold as it is, or if at some time you would make adjustments to it either by adding new names or by re-balancing?

Q: What service offers up-to-date info covering "shorts" as a percentage of the Float? Thank you.