Investment Q&A

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

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!

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

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.

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

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

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?

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.

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.

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

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?

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

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.

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.

Q: I would like a clearer understanding of what the VIX is and when an investor would buy or sell it. THANKYOU!