Investment Q&A

Q: You have been busy Nov 8 ! How do you do it ? More staff ?
Publish if you wish ...

Q: How do you think about this scenario. Own a stock of a company that you have researched and understand well, for a long term position. The stock then goes on a longterm downtrend. Quarter after quarter it keeps drifting down, but for no apparent reason that you can identify. Fundamentally all seems well. Does there reach a point when you assume that the market must know something that you are missing and its best to just sell and get out of the way? OR Keep the faith in your research and continue holding?

Thanks.

Q: What would you recommend for stock analysis software, similar to VectorVest but less expensive. I know nothing can predict the market, but it would be interesting to see what kind of info the analysis software generates.
Thanks!

Q: Good Morning Peter, Ryan, and Team,
This is a general question regarding Canadian Depository Receipts (CDRs).
I have read the brochure from CIBC World Markets and I think I understand what they are about and they look to be a decent way to own high quality US stocks within a $CAD RRSP,RESP, or TFSA.
I was hoping to get your expert opinion of these securities and the currency hedging component ?
Thank you so much. DL

Q: A number of the DIY brokerages have promotions for moving over your accounts. I moved my maxed out TFSA to TD. I asked about the bonus pay out into my TFSA and they said it's a credit not a contribution, therefore I have nothing to worry about-sounds a little wonky to me.

You're thoughts?

Q: From dr Dahle, the founder of The White Coat Investor:

“Invest like an optimist, but work and save like a pessimist.”

Q: I've still got my now worthless XBC shares in my trading account. Seems its taking years to finalize the bankrupcy. Is there any benefit to leaving these shares or is it best to get rid of them and claim the loss? What do I ask the brokerage to do to get rid of these shares to produce the loss statement, since I can't sell them on the open market? Thx

Q: Sometime a company's consensus EPS is declining at various points in the 90 days before the end of a pending fiscal period. I would think this to be a negative; what conclusion(s), if any, would you take from this?

And sometimes a company's Forward P/E is lower than its current P/E. I would think this to be a positive; what conclusion(s) if any would you take from this?

Thanks

Q: In your answer to "A" today regarding a GIC, I was surprised to find 5i telling subscribers that banks use the funds from GICs to fund the mortgages and loans that they originate.
Mike

Q: Good morning,

What happens to a GIC behind the scenes. Is it correct to think of a GIC as lending money to the financial institution with the CDIC insurance? (Basically a bond with insurance?)

Q: Where is the trade rationale for 5i portfolio moves archived on the website? Also your Growth Portfolio still has August stats and the others have had Sept. for some time...

Q: I plan to invest $100000 in the US market.
Please advise if there is a way to minimize foreign exchange fees.
Are some brokerages better than others in this regard?
Is using Norbert’s gambit a good idea on large transactions when there is no rush on having the trade completed?
Thanks for your always helpful advice.
Peter

Q: Hello 5i Team,

For the last few years I've tried to get a few family members interested in investing without luck. I think a ROBO Advisors might be the way to go; could you recommend 1 or 2 ROBO's they should look at?

Thank you
Brent

Q: What is the main difference between investing in Index Funds vs ETF’s? I read about these U.S. bloggers who post about their increasing net worth by investing monthly in index funds, is that similar to investing in say WealthSimple in Canada?

Q: I have seen some commercials about buying fractional shares and am curious how it works from the brokerage's perspective. Can the brokerage simply buy the fractional share on the open market? If so, why don't all brokerages offer fractional share purchases to their clients. If the brokerage has to buy a full share, what does it do with the other part of the fractional share?.

Q: I was wondering what your thoughts were on investing in ETF’s like Wealthsimple vs Index Funds. What’s the main difference and does one have more upside?

Q: Useless questions: when was 5iResearch created , by whom and any reason for this specific name?

Keep the good work. Tax loss season is always fun.

Q: Further to the questions about CIPF coverage, I think I may have been misunderstanding the coverage levels, perhaps viewing it as similar to CDIC coverage in terms of accounts (not dollars). Could you please clarify for me the coverage in the situations below, assuming all accounts are held at the same brokerage:

1) I hold $1 million in a cash account and 300K in a TFSA, both in my name alone. Total is $1.3 million. Is the total covered or just $1 million?

2) I hold the amounts above, plus a $1 million cash account held jointly with my wife. If I read the CIPF website correctly, they view this account as held $500,000 by me and $500,000 by my wife. Is she covered for her $500,000, but I have no coverage on this account (my total over 3 accounts is now $1.8 million)?

3) in addition to the accounts above, my wife and I each have a RRIF. Are we each covered for up to $1 million in each of our RRIFs?

Thank-you

Q: I have been reviewing my holdings and want to transfer some canadian stocks to the us listing. In most cases there is the same stock on the nyse. In others it is on pinx. Should I be wary of pinx?

Q: Everyone, I have seen questions on rebalancing. When should investors rebalance our portfolio? Yearly? Semi annually? Quarterly? FYI I don’t rebalance and I only make changes if a stock has significantly changed firm my original reasons to purchase. Clayton