Investment Q&A

Q: I keep reading that there has been a great rotation away from income/dividend stocks into growth though I dont see much evidence of it. My TD, RB and Telus are not down at all.

Can you explain this belief and if there are examples of beaten up dividend stocks, CDN or US, can you recommend a few for long term holds?

Q: I assume hedging is a two way street - you get protection back to Can$ if the US $ falls but lose the gain associated with a US$ rise, and there is a cost to provide this?? So if the US$ looks strong going forward relative to the Looney is this the best strategy and are there other US banking sector ETF choices. What do you think?

Q: Do you think its time to sell VCIT and buy iwo and xlf or other financial etf. Thanks

Q: I need to add US exposure to my holdings and with a view to the anticipated rate increase by the US Fed wanted some assessment of US banks. What is your opinion of the large banks versus the regionals?
Specifically I am looking at Bank of America and Wells Fargo. do you have an opinion on the ETF KBE:US? If not any of these would you have a couple other specific preferences?
Peter

Q: I am currently up 30 to 60% on these companies, all are held in an RSP or RIF account. Would you add, take profits, or sell full position in any of these funds. I have about $20,000 to invest currently in my RRSP and am wondering if it is to late to start a new US position. I am considering facebook or google? Thanks for your input!

Q: How will CDZ do in a sell off? I have about 10% in my portfolio but would like to move it to 15% - Also is there an America ETF equivalent ?

Q: For someone looking at a retirement in 2 - 3 years that will be funded by personal investments, I am having trouble formulating an investment strategy that would currently include fixed income investments. Fixed income securities seemed destined to only go down in value in the foreseeable future as interest rates rise so why would I want to invest in them? Pipelines, utilities and telecoms may also drop but their yield is currently quite good and secure and capital appreciation is always a possibility, if not a probability, in the longer run.

It seems to me that much of the argument for holding fixed income assets is to ensure the preservation of one's capital. But if I am ultimately going to invest largely in quality dividend paying stocks eventually anyway to fund my retirement is capital preservation the main concern? Isn't dividend "preservation" more the issue?

I feel like I am missing something because it seems that all advisors, planners and analysts strongly suggest there be some fixed income in a portfolio, especially as retirement nears. What are your thoughts?

Appreciate the insight.

Paul F.

Q: I was reading your comments on stocks that do not do well in a rising interest rate invirerment.Utilities,riets, pipelines, telcos.How do we (Your Members) stay diversified if we sell all of these?I was also told that when everyone runs to one side of the boat it is a bad thing. Canada did not raise their interest rate.I am confused. HELP

Q: My portfolio closely matches you balanced equity portfolio. As it looks like the US will outperform Canada over the next year I am thinking of picking up some US ETF's for about 20% of my portfolio. What do you think of this strategy and if you agree, what ETF's would you suggest?

Ray

Q: Could I get a couple of suggestions for 1-2 small-to-mid-cap regional US banks with good fundamentals that you like the looks of. What are your thoughts on US financials generally for the next 12-24 months. Thanks.

Q: Now that there are 11 sectors in the Toronto TSX what would be your Sector allocations for a Conservative dividend and some growth oriented 45 year old investor.
Thank you.... Paul K.

Q: I understand there is an ETF that could provide some protection in case of a down market,I believe these are called inverse ETF. I looked in the ETF section and only found one mention of inverse ETF and not sure I understood how it worked.
Any info would help as I am looking to buy "insurance" protection.
Thanks
Jean

Q: When you stated that people are moving out of dividend paying and into growth stocks do you think this is short term investments?I am a long term dividend investor.Should I follow the crowd?

Q: Good afternoon, I had moved everything to cash, believing that we were overdue for a bit of a correction, and also because I did quite well on atd and ccl. . Do you think a correction will occur when the honeymoon is over with Trump? I know no-one has a crystal ball, but do you think it is likely? If no, would you be content with the above choices for a moderate risk? I plan to keep my US in cash for now.
Thanks as always.

Q: There seems to be renewed enthusiasm for mining stocks, with the likes of Teck, Quantum and Hudbay going up like rockets. What do you think of the mining sector (excluding gold)? My impression is you've been fairly lukewarm over this in the recent past. My portfolio has a very small bit of Teck (about 1%) and am wondering if I should be putting more money into this sector.

Q: I would like about 3 ETF's to cover my fixed income and 4 or 5 to cover your best idea sectors. Thanks Al

Q: Hi,
Ive own a few etfs (vgg and vfv). I have some other individual stocks as well, but the majority of my portfolio is in the etfs looking for long term growth. I have been thinking about adding emerging markets but am having a hard time rationalizing it. I saw that a few days ago you recommended VEE. Can you explain the value of this etf, or is there a better way to get some emerging markets exposure? VEE opened at 24.65 4 years ago and has been up and down a little, but is only at 28.84 today. Is 4 years not thinking long enough for this? Im just having a hard time seeing the value of adding it to my account since VFV has doubled and VFV is up 65% in less time.

Thanks!

Q: Hi Peter and Team!! I do not have any exposure to emerging markets in my portfolio. Could you suggest an ETF for me, and is it a good entry point at this time? Thank you, Tamara

Q: Hi 5I Team,
I own the above preferred shares. With interest rates on the rise is it time to sell these? If so what would you recommend.
Thanks
Bob

Q: I have Ryan's read excellent article dealing with the impact of the US election on Canada.

However, I am somewhat bewildered by recent market activity - especially on the downside here in Canada.

The opinion has been expressed that interest rate incrases are/were already baked into the market. Can you quantify that in any way? e.g. 3-5%; 1-2% .... to what degree they are "baked in".

The reason I ask is that, it seems like all the media had to this week was mention the likelihood of inflation driven interest rate increases in the USA and sectors here like utilities and REITS took it on the chin.

How much more downside can we expect given the impact of just a few words about possible Trump moves to drive the USA economy when the decision(s) are made to actually increase rates in the USA?

Could this downward pressure be magnified if, in addition, we see US corporate taxes reduced and see some companies start to shift production to the US.

How likely is it that we are facing the prospects of a signicant bear market lasting a few years here?

Or is this a knee jerk reaction right now like Brexit that will likely reverse itself over the next few weeks?

Any light you can shed on this will be greatly appreciated.