Investment Q&A

Q: Peter please comment on the alleged, or true, China Real Estate bubble. I was watching 60 minutes and HBO Vice and they both showed and reported so called "Ghost Cities" being built in China BUT are empty. According to these programs the Chinese people are NOT allowed to trade stocks, as we do, so pile all their money into speculative Real Estate and that is driving their economy. What are your comments on it bursting? when? and the effect on the world and Canada?
Thanks.

Q: Hi to all.. just a question about stock screeners for Canadian stocks. Who or where would you suggest has a good stock screener for Cdn stocks? Thanks for all your work!

Q: Do you plan on having a model portfolio for US companies for those of us who like diversification outside Canada?

Thanks

Q: Should an investor consider seasonality when purchasing 1) Gold stocks, 2) Energy stocks, 3) other stocks? thank you Alan

Q: Hi ,
When a company puts out a news release stating they have hired a company for financial advisory services in relation to potential strategic relationships, combinations and transactions to enhance commercialization efforts
What exactly does the financial advisory service company do ?
(news release on TMD July 16th is an example)
Thanks
David

Q: In the past I have been burned buying stocks that are breaking out into new highs after they have already had a great run. My old inclination of searching for undervalued companies when they are unloved, and catching a run early, is hard to shake. Do you believe any of your portfolio picks are in the early stages of a nice climb, just as MG was 9 months ago and/or how much more upside can you see in something like Magna? - Thanks.

Q: Hi Peter
I was wondering if you could explain what negative retained earnings reflects.
I was looking at a company with Total Assets of 69.5 Million
Total Liabilities of 13.5 Million. The company has Negative 83 Million in Retained earnings? I'm lost on this.

Thanks Gord

Q: G - Is there any relationship to the price of oil and the price of gold? Do they tend to move in tandem?

Q: How did you choose your model portfolio from your summary list? Is it an issue of diversification? Your model portfolio has 20 securities and based on a total of $ 100,000. If I wanted to invest $ 500,000, do I just simply multiply everything by 5? or do you suggest that I choose others from you summary list keeping the diversification issue in check?

Thanks

Q: Good day all,

No question, just a note that Peter is the guest on BNN's Market Call Tonight on Tues August 13 @ 6 pm (ET). Enjoy.

mz

Q: re Saad question
My wife entered the market for the first time in march 2009 with a full service broker.
A performance review lately showed a profit of 16%, not per year, for the entire period. The broker was VERY proud of the performance...
I have been looking for a broker for the better part of the past 15 years for my own portfolio, fired one and WAS fired by another one, gave up and manage everything myself. Peter entry in the retail investor world void of real/unbised information has been a breath of fresh air and provide a much needed support. But I think I still have to do my homework.

Q: Peter and Team,

Here is a question about bonds. Let's say you buy bonds of a major Canadian, credit-worthy company that mature in 2015. Let's also say that interest rates keep backing up (thinking of US 10 year) way past everyone's expectations during that time.

Is it correct to assume that, while the value of the bond you are holding goes down in the market, you get all of your money back at the maturity date in 2015? Therefore, if you hold to maturity and the company is still around, the back up in interest rates does not hurt your capital invested?

Thanks... let me know if that didn't make sense.

Q: Hi Peter:
In my on-RRSP portfolio, I have some money in XRE and some
Reits and the Canadian banks, BCE, and the pipelines

I still have some cash to be invested and I am looking for
a steady source of income (age around 60); for this purpose
someone give me a suggestion:
1) CPD a prefer ETF
2) XDV (it generates dividends)
3) a floating rate prefer ETF (I could not find the symbol)
4) BMO covered call utilities
5) BMO covered call banks ZWB

How would you compare to the above when I put the 5 investmensts in the
ETF XTR ? (it has bonds in it)

Thanks!

Q: Hi Peter:

I have been managing my own portfolio for over 30 years. It is now more than seven figures value. I am reaching a stage where the number of stocks and mutual funds are exceeding my capacity to monitor them. I tried several discretionary managers and to my disappointments none of them made me any decent return. The best of them had a total return of 7% over 4 years period. I am either selecting the wrong ones or had high expectations.

I have two thoughts, one is to migrate half my portfolio to your model portfolio and manage the other half myself. The other thought is to find a manager that can review my portfolio on a periodic basis and suggest changes “for a fee of course” but don’t know how to find them.

Any suggestions,

Thanks

Q: Hello all ... Interest rates are such a big factor in my retirement forecast. With the lowering of interest rates in Australia and comments by Mark Carney from the UK of rates not to go up till '15, are these countries indicators of when interest rates may increase here in Canada.

Thanks for your comments.

Q: I have a question about your rating system and apologize if the same question has been asked and answered recently (I'm a new member). If a company is rated A for example and has gone up substantially since you gave it this rating will the rating be downgraded eventually reflecting the higher valuation or does the rating only reflect your views on the quality of the company, it's management etc? Does the "A" rating mean that you feel it's not only a good company but is also trading at a good price? Thanks.

Q: Hello Gentlemen, please tell me what "5i Alpha" represents on your model portfolio summary.
Thanks
Dave

Q: Information eventually for the community.
I spent a lot of time (trying to) getting info on reported earnings, disregarding completely the actual official reporting against estimates which are themselves constantly revised to match the `Beat estimate requisite during the quarterly `Urbi et Orbi financial results Mass`.
This morning I found wwww.factset.com that seems to do a good job reporting the real results. If you go to the site, you will see that 2Q earnings are dismal, born(should I say levitated) once again by financials that are reducing quarter after quarter their reserves to maintain earning growth.
Anyway, if you think it is worth, please publish.
CDJ

Q: I hold stocks in my RRSP and non-registered, but recently opened a TFSA. I feel that managing stocks in 3 account is too complicated so would like to buy some ETFs that I can rebalance once per year in my TFSA. Do you have a suggestion for an ETF portfolio that includes a mix of large cap and small cap Canadian and U.S. ?

Thanks,
Carla

Q: Hello Peter and the 5i Team,

For a $21,000 RRSP, would you recommend only ETF's, and if so, which ones that would reflect the kind of holdings in the Model Portfolio?

Or alternatively, if trading costs through a discount broker are $10 per stock, and I wanted to purchase at least 15 names from the model portfolio, which 5 of the 20 names could I neglect? My thinking is that while some ETF purchases could be commission-free through Scotia iTrade, the on-going MER's of the ETFs would cut into the returns. In this scenario, the $150 trading costs don't seem excessive over time.

As usual, thanks for your thoughtful answers. Your service is first-rate!