Investment Q&A

Q: Where is the best place to hold some short term cash that will be deployed over the next 2-3 of months? Is it worth holding in high interest account, ETF or just to leave as cash and deploy as opportunities come up.
Thanks

Q: Hello 5i
Thought I would ask Investor portfolio management and psychology/behaviour question.

As I watch my profits in companies like Emera drain away 2% per day ( down $5/share since August), I wonder what the statement to investors should be when the question comes up, why did we not get out seeing clearly this stock is in a down trend and with rates moving up, is going to be out of favour and see price declines?

Waiting for an annual dividend of $2 when in four months $5 of capital disappears, just does not make good math sense or a profitable stance.

In September this was a good investment. What are your thoughts on this today with debt high, rates moving and short sellers pointing at companies like this?

Should we not have been selling at $50 instead of holding at $45.....and watch the price tick lower?

As you can imagine, it is tough watching long term paper profits in REITs, Telcos and utilities drain away.

Would you please offer your thoughts on the emotions that arise in this situation and with the stated company and sectors?

Thanks
Dave

Q: Is it a good/bad time to buy and hold this etf for the long term?

Q: In many of the ETFs that track US healthcare, some of the sub-sectors took a hit yesterday while others outperformed. Is it too early to tell what this portends? Given the new U.S. admin, I’d be grateful if you could share your thoughts on your favourites in this space, especially among the broadly diversified ones. Thanks very much.

Q: Hi Peter,
Reits, Telecoms and Utilities have not been participating in the market rallies for a while now. Just wondering when you think that the yields on these types of stocks will start to hold up the stock prices. (a few of mine are starting to get come nice yields on them now.

Thank you,
Charlie

Q: Hi Peter,
These long bond etf (ZLC, XLB, ZFL) have done very well with YTD total return of 10.48, 10.35 and 8.91 respectively
Why have they done so well?
Is it too late to consider them for RRIF income investment going forward? If so, which one do you recommend, thanks

Q: The Emerging Markets took a bit of a hit today with ZEM being down about 2.5%. Would you consider adding to my position now or should I wait a bit to see how things shake out with the change in the U.S.? Currently ZEM is about 5% of my portfolio

Q: Hi Gents,

Is the continued sell off in SJ warranted by yesterday's surprise electoral news? Could you please comment on your understanding of how the company's long term prospects may be affected?

Q: PPL and others in the utility pipeline space have taken a major haircut in the last few days for no reason at all. Is the threat of a Fed rate increase really to blame? In real financial terms that is really immaterial. However, market movers have been using all threats (real or otherwise) to further their games of stirring stock movements. What is your take on this? Thanks.

Q: I am wondering what benefit it would be to the U. S. to raise rates. On one hand is their economy that "hot" that it needs to be controlled ? They seem to be a consumer driven society so a strong dollar makes imported goods cheaper for the U.S. consumer. More consumerism makes their economy hotter. Was that not the scenario some years back culminating in a housing bubble? Also raising rates makes their goods more expensive for other countries. Some large U.S. corporations have experienced a drag on earnings with the dollar at its current levels relative to other currencies. How can the U.S. be an island of a strong currency when many other countries are weakening their currencies to promote growth? These are simple views but your thoughts on the effect assuming an interest rate hike in Dec.

Q: Every year there is a number of stocks that are sold to crystallize capital losses in that year. Can you suggest 5 stocks, mid to large caps, that will be sold because of tax loss selling but could have a big potential to bounce higher after the selling has stopped.

Many thanks!

Q: Would you favour CLF or VAB for government bond exposure?

Thanks,
Jason

Q: Hey folks
With it looking more possible that a Trump win is in the future, and the predictions of how the markets are going to fall ( which we may have seen the start of today), would it be prudent to take some gains off the table now and reinvest when/if the markets drop, knowing fully that they will recover in a short time, or should a person stand pat and ride it out? I am thinking there may be some gains to be realized by playing the over reaction that is sure to come if Mr. Trump wins.

Q: Hi 5i Team,

Is FEZ a keep for the next 3 years? I have a full 5% position and down 28% since 2014 in my RRIF. What is a good ETF replacement for stable income?
Thanks

Q: Having an Income portfolio including the above companies, I'm unsure of the effects of a potential increase in US rates in say December 2016 when at the same time the Bank of Canada holds rates or even maintains dovish tone signally near term rate cut. Will holding Canadian interest rates steady offset what would otherwise be negative pressure of a US rate increase on Canadian dividend paying stocks? Thanks

Q: Now that Donald has consistently shown his character it seems obvious that Hilary will be the next President. Do you still expect the markets to be jittery?

Q: Hi,

Is now a good time to invest in a preferred share etf? It is a non-registered account that is focused on income. How safe are preferred shares in a rising rate environment?

Thanks,
Jason

Q: I am considering one of Vanguards developed Asian Pacific developed countries etf. They are vah or veh. veh is hedged. Which do you prefer for a 5 year hold? I am a conservative investor and I am some what concerned about the Canadian dollar. Which would give the better performance over the indicated time frame? Thanx.

Q: The best investment I made this year was joining your service.
I was just chasing stocks.
What sector should I be looking at first.
Could you recommend any to get started.
Thanks.

Q: SYZ, ZZZ, CZO, TNC, NFI, PBH and ITC These are all stocks that have been down considerably over the last month. They are stocks that 5i customers have or did have. Meanwhile, the TSX 60 has been flat for the last month. So I am wondering if the members are selling out on these stocks and possibly putting the money into oil which has been up for the last month or so. Should I have been getting out of some of these stocks over the last while and putting my money into oil which is one sector that is doing quite well and probably the reason the TSX is not losing ground this month. Thank you. Dennis