Investment Q&A

Q: I understand that some individual reits are considered 'fully valued' on a P/E basis - based on historical 'norms'

question: looking at ZRE can you provide a 'rough' calc on the overall P/E with an eye to whether you feel it is at, near or over its traditional long term valuation range

or, more importantly, based on metrics you (5I) would use, what is your currently concern about reit valuations?

thank you in advance

Q: Hello Peter and Team, What are thoughts about this ETF for a 3 year hold ? Thank you.

Q: Interest rate anxiety seems to be sweeping the markets again. Refresh my memory about what sectors are likely to be hurt worst in this silliness. I would have thought reits, utilities and telcom but it was consumer staples that got hammered today while the telcos did fine.

Q: What public companies/stocks are/will be a play onBlockchain?

Q: how would you invest in the future of the electric battery industry? would it be in a manufacturer or a miner? and can you suggest a company.
Thank you for all your thoughtful and considered work

Q: What do you think of XSB as a short term hold, six months or less? Bonds generally do well, relatively, in the summer.

Q: Hi,
Thanks for the tip of TMXMONEY to identify the sectors. It turns out I had miss-classified 3 of my stocks (SJ, IPL and ECI). I'm now questioning my weightings. I currently have the following:

Cons. Cyclical 11.9%
Cons. Defensive 0.0%
Financials 17.1%
Healthcare 3.6%
Energy 14.7%
Precious Metals 13.9%
Real Estate 0.0%
Industrials 9.2%
Utilities 0.0%
Technology 24.5%
Materials 4.6%
Communication 0.0%

I'm ok with some risk, which is probably evident from above. My precious metals may be a little high due to the recent bounce in this sector.

Based on the current market environment, do you see these weighting as appropriate? Are there any particular red flags that you see?

Thanks, Ian

Q: What do think about comparing the current dividend yield to the historical yield of a stock as a way of assessing its value as an investment? i.e., if the current yield is greater than the historic yield (the average yield over the past five or ten years), than the stock would be a "buy" (notwithstanding other factors) or a better value than companies in the same peer group with yields lower than the historical average yield.

Q: For international exposure, I have some ZDM in my portfolio but should I be worried enough about BREXIT to dump it?

Q: With Bombardier getting orders for their aircraft are there companies in the aerospace industry in Canada that will benefit ? I am thinking of Magellan mal. Any others ?

Q: I own ZWB. When interest rates rise, I suspect that individual high quality rate reset preferreds will have a greater increase in price than ZWB. What do you think? If you agree, please provide the name of a few rate resets with the 5 year renewing base rate. Thanks.

Q: Hello Peter.

I am a income investor with a high concentration in blue chip preferred shares...both reset and perpetual. The later being the larger holding. In theory, when interest rates move the two asset classes...Reset/Perpetual should move in opposite directions. This is not the case. In fact I see them moving in tandem.
I'm looking for an alternative to hedge out my income portfolio. I was thinking an inverse long bond ETF (HTD) might be a good investment to protect my overall balance should there be another rate scare like we saw in January.
Your thoughts?

Q: With the Canadian Dollar getting stronger is it time to pull out of my US stock and bring the money home. My portfolio is 50/50 CDN to US

Q: Of the two ETf's as listed above would you comment on the timing and prospects for these ETF's in the current economic environment with both the US and Canadian governments emphasis on infrastructure spending. With thanks, Bill
XMA and VAW

Q: I have managed my own registered portfolio for the past few years(with valuable input from 5i). I have sold my GTA house and will have this house money during a 2 year relocation period and then will likely be buying real estate again. Any advice for managing registered vs. non-registered investments during that time. Also, any allocation ideas related to type of stocks, fixed income or other investments keeping in mind the two-three year time frame with the new money. I currently have a registered portfolio with a number of dividend payers. Am i better to switch the registered funds too a more growth oriented approach and buy some utilities/banks/telcos in the non-registered.
Also, are Canadian based ETF's that hold non-Canadian stocks eligible for the dividend tax credit?
Thanks team

Q: What is the differences between HVU and HUV? I'm bearish towards the markets and looking for something to buy for a short term holding period of 2-4 months as added insurance. Any other recommendations? Thanks

Q: Hi all at 5i! Could you please explain to me the concept of " dumb money"? I gather it refers to us retail investors...the ones that are not large enough to influence the markets and have no insider information to get ahead of the game. There has been a lot of commentary from some investment companies and bearish investment advisors , that the smart money is leaving stocks and the dumb money is piling in. I guess that is me since I am selectively adding stocks. Again, is this concept of dumb money fear mongering or just a label given to us little guys by some financial smarty pants? Do you agree ,that as little guys,we should just stick to our investment plans and ignore the negative labelling. Your thoughts on the matter would be welcomed. Cheers, Tamara

Q: I haven t followed the market much in the last 3 months or so but i wonder what has really changed (growth story, oil output, china, somewhat rich valuation) and when i see the S&p500 almost at all time high i wonder about the risk / return in the next 12-24 months and i hesitate to add new money. Can you please comment on the macro picture at the present time and other related comments if any. Thank you.

Q: there is supposed to be a meeting on April 17 regarding the production of oil between opec and non opec members. could this possibly determine the direction of oil for the next while? would you suggest waiting to buy into oil or buying into it after the meeting IF production is cut?

Q: Can you please advise which ETF is better to hold when market sells off.
Below ETF has to be hold for one /two weeks or I can hold for long time. If below is not right one - Please recommend another ETF.

ETF: HVU OR HUV