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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Please provide your opinion on purchasing preferred ETF's at the present time, for a one year hold, and which of the following would you prefer and why?.... CPD (Canadian Preferreds), XPF (North American Preferreds), HPR (Actively Managed Preferreds), ZPR (Laddered Preferreds). These funds would be held in a non-registered, fully taxable account. Thanks!
Read Answer Asked by Paul W on April 06, 2016
Q: Hi Peter and 5iResearch Team,

Can I invest in US treasuries and TIPs in an ETF? Investing in both traditional bonds and inflation-protected TIPs?
Thank you. Linda
Read Answer Asked by Linda on March 31, 2016
Q: What is your opinion on what to do with a new found $100,000 at this point in time. I have $200k invested in the stock market currently and have managed to do well over the past 5 years (less so in 2015). I am getting concerned about all the cash that is floating around out there. All the QE does not seem to have had the desired affect on economies/markets. P/E s on many so called safety net large caps are getting quite high although I think there are some that are still ok to hold.
So, I'd like your opinion on how best to invest/protect $100K. ie, leave it in a low interest savings account? Put it large cap "safe" stocks? Canadian Banks? DJIA? TSX 200? Any comments are appreciated.
Read Answer Asked by Bill on March 30, 2016
Q: Peter and His Wonder Team
Just spent too much time writing my question and got stopped out...so I will be brief. In the event of a global financial collapse... because we are drowning in debt... who will survive? How can we prepare...own hard assets like land, gold or silver coins, the minings stocks, be debt free with no mortgage? Are there any sectors which would benefit? Your thoughts please...so I can sleep better! Ha! Ha!
With respect...
Dr.Ernest Rivait
Read Answer Asked by Ernest on March 28, 2016
Q: Based on your recommendation a few weeks ago I purchased SPB, AYA and CUS.
AYA is now down 26%, SPB up 2% and CUS up .8%. Should we still hold these stocks or sell them? Will you be advising your members when to sell these stocks.
Thanks
Read Answer Asked by Terry on March 24, 2016
Q: Please identify CAD hedged ETFs that track the world index, the way that VT does (VT would work, but it is only offered in
USD). I just looked up VXC (all world except Canada) but it is not identified by Vanguard as being CAD hedged.
If one ETF will not do the job, please list a basket and I'll buy the separate ETFs in a ratio to match VT. The important part is that the ETFs suggested be Cad Hedged.
Also, I plan to put this strategy to work in a TFSA. Are there any tax consequences I should consider at the outset?
There has been much written at 5i over hedging. What would be 5i ETF strategy for global coverage, in a TFSA, for a long term hold?
Read Answer Asked by Kat on March 22, 2016
Q: Hi Peter and Team - An article in Friday's Globe and Mail suggested a rally in bank stocks due to short covering. Is it a reasonable strategy to buy shares at lower prices in companies where there are substantial short positions and expect their price to increase within a few months, perhaps even back to somewhere near their original price before the shorts started. This strategy would assume that the fundamentals of the company are much the same and that the buyer would be willing to hold on to the shares for at least a year. If this is a decent strategy then what would be a good source for researching short positions. Thanks.
Read Answer Asked by Rob on March 22, 2016
Q: Our kids are now going to post-secondary school, so the RESP will be drained at a rate of 25% annually. With these fixed needs, what is an appropriate stable holding? The portfolio is 75% preferreds that have held their par value (GWO.pr.p IGM.pr.b POW.pr.c) but I am concerned they may not hold their ground for the next 4 years. The remainder is in a Cdn Balanced fund.
Read Answer Asked by Dave on March 21, 2016
Q: Peter; I see Mr. Trudeau said that the first two years of infracture spending will be on " unsexy" things such as recapitalization,deferred maintenance,upgrades and restoring subway signals. Would this not take the shine off the above companies re " major" projects and forward any new work out two years? Thanks.Rod
Read Answer Asked by Rodney on March 21, 2016
Q: I have a growth oriented portfolio that includes AD, CXR, CXI, DHX.B, KXS, GUD, NFI, OTC, PHM and SIS amongst a few larger stocks. I am committed to holding these long term and won't need the money for at least 20 years, but I want to have a strategy in place.

What does the end game for this type of portfolio usually look like? 10 years from now will some of these stocks be negative and one or 2 have gains over 1000%? At what point do you recommend selling off stock?
Read Answer Asked by Andrew on March 20, 2016
Q: Hi,
I'd like your input on the fintech sector in general and how you would recommend investing in it. So far I've come across 4 names that seem to get the most attention
paypal, square, betterment and the lending club. Would you recommend any of these and which would rate the highest? Are there any others that rate higher?
Thanks very much,
Dave
Read Answer Asked by David on March 20, 2016
Q: I am looking to eventually replicate one of your portfolios. I plan on eventually using my tfsa for this portfolio (growth probably ). I do not have a lot of capital in my tfsa yet. I started contributing $225 biweekly. I do have roughly $6000 in it now with roughly equal holdings of aya, gud, and yfi. How should I proceed with my contributions? Should I start contributing to a d series mutual fund to build up capital or should I save $1000-$2000 and then pick a stock from your portfolio? If going the mutual fund route, would there be a low cost option you would suggest? I'm 38 with time on my side. Thanks as always.
Read Answer Asked by Seamus on March 18, 2016
Q: I'm following your sector suggestions for my income portfolio.
I have all sectors bought but Telcos and Cons staples. The Telcos are trading high right now so I'll buy them lower. I'm puzzled with the 15% Consumer Staples for an income portfolio. Except for NWC the average yield is in the 1.30% range and they are trading high in their range. I'm considering omitting the Staples and replacing them with another sector or increasing another sector. The sectors you suggested with their percentages are as follows. Utility 15% Industrial 10% Con Disc 10% Energy 5% Financial 20% Materials 5% Info Tech 5% Health 10% Telco 10% unfilled.

Please provide your comments. Thanks.
Read Answer Asked by Tim on March 17, 2016
Q: I would like a clearer understanding of what the VIX is and when an investor would buy or sell it. THANKYOU!
Read Answer Asked by John on March 14, 2016
Q: Would you please provide a percentage sector allocation recommendation for an income portfolio with a 5 year time frame.
Read Answer Asked by Tim on March 04, 2016
Q: Could you please provide a percentage sector allocation recommendation for a growth portfolio with a time frame of 5 to 10 years.
Read Answer Asked by Vineet on March 03, 2016
Q: Where do you (we) find out what STOCKS the Canada Pension Plan invest in or hold, and what STOCKS are they? I hope, it helps all the people collecting the CPP payments.
Read Answer Asked by Herbert on March 03, 2016
Q: Can I have your opinion of Peter Schiff and his advertisement on the Globe Website concerning America's Financial Suicide and the Inevitable Armageddon? Pretty scary stuff and he makes a convincing argument.
Read Answer Asked by Bryan on February 25, 2016
Q: Hi Peter and Team! There has been a lot of babble on the potential for negative interest rates. My portfolio is a 50/50 split of stocks and bonds, with the majority of the stocks being dividend aristocrats and 35% growth. The bonds are in an RRSP. Should anything change in my investment strategy should these negative rates come to fruition or should I just hold the course? What would your general advice be should we encounter negative interest rates.? Thank you for your help, Tamara
Read Answer Asked by Tamara on February 25, 2016