Investment Q&A

Q: Considering your model portfolio, would you continue to deploy new cash into it and spread it out evenly amongst the stocks (or just the winners?) or wait for the debt ceiling thing to get resolved?
thanks. Really appreciate the service.

Q: Hi Peter and team

I am concerned about the possible default of the U.S. Should we take some defensive measures to protect our portfolio?

Hope you are enjoying your well-deserved vacation.

Joanne

Q: I'm not to sure how it all works. But on oct. 17th. The US National Dept. might come into play. A friend of mine told me maybe we should be selling ALL of our stocks. Ever since we've been listening to you guys were boyh up. Him about 25% & me about 35% we really don't want to lose our profits. So do you think we should be selling or holding on. We really appreciate all the help we've received from you. We'll be waiting for your advice. Thank You Very Much. Andy

Q: hi guys, thanku for all the good advice. i'am making money in canadian stocks and a few american stocks, but am anxious for american stocks to start moving. my question is what is your best guess on american stocks to start moving. thank dale.

Q: Peter; I own FEZ for Euorpean coverage. With the German election Sunday should I sell it now and wait for results ? Thanks. Rod

Q: Hi 5i people. This is a follow up question to one asked by Ray regarding QE. No one seems to be worried about the consequences of QE. It's a party, let keep going! The FED's balance sheet is now above 3 trillion (with a T). Could we please pause for a moment and ask what happens when they unwind that or how are they going to do it? Are we not at least robbing Peter (tomorrow) to pay Paul (to-day)? Henry

Q: I'm 81, my wife 65. We are not rich but have assets of over a million dollars in our cash, investments and residence, ample to last us the rest of our lives. However our pensions are modest so our investments are 100% in 30 dividend paying equities. The mix is about 22.5% oil, 17.5% pipelines, 12.25% power, 8.25% telecom, 20.8% banks, 5.4% other financials, and 13.2% industrials. We are not greatly concerned about growth but still add almost half the dividends to purc hase stocks. Is this a reasonable course to set given our age? I should add that the funds are in the BMO Investment plan and, at $9.95 a trade, I do not hesitate to dump a laggard, and I have relied on your advice to a very considerable degree for purchases. Thank you so much for this great 5I program.

Q: Allow me to be the first to ask, the Fed is not tapering Bond buying, good or bad for equity? Most seemed to have $10-$15 billion 'priced in' so the obvious initial reaction is that stock will rally (they seem to be doing so as I type this question), however, the fact they are deciding to do nothing makes me wonder, just how bad IS the US economy? Should this really be considered a good thing for equities?

Thanks!

Q: Approximately 15% of my holdings are in convertible debentures (eg HR.DB.D) purchased some time ago with interest payments just under 6%. With one small exception these dropped to around their purchase point of 100 with the recent interest rate scare. These were purchased by my full service broker before we parted ways. I have now found that they are extremely illiquid and may be hard to sell at the price shown on my screen as the last sale may have been weeks ago. They form about 50% of what I consider the fixed income part of my assets but their price actually tracks the common because of the convertible nature. Am I right to consider them fixed income and do you have an opinion on the wisdom of keeping them?

Q: Hi Peter and the Team,
I would like to have your opinion and advise on my plan for my RIf. 200K and I do not intend to withdraw more than the legal annual requirement about 7%. My goal is to protect my capital therfore expect a 7% annual gain.

Cnd. Equity 40%: TD Cnd. Index 16%, Mawer Cnd. Equity 12%, RBC O'Shaughnessy All Cdn Equity 12%.
US Equity 20%: VUS 10%, O'Shaghnessy US growth 10%.
Global Equity 20%: VEF 10%, Mawer Global Equity 10%.
Fixed Income 20%: CBO 10%, VSB 10%.

I would like your views on the composition of this portfolio, my expectations and my choice of investments.

Thank you so much for your excellent service.
Regards

Q: What is your opinion on selling "cash covered puts" as a way to generate additional income? Thankd

Q: I believe the direction and level of the US 10 year treasury bond yield is frequently used as a portfolio weightings benchmark. I recall the quant/strategist Peter Gibson (formerly CIBC and SCM) used to say he would shift weightings in stocks as this 10 year rate approached 3.75%. (do you know where he woks now by chance?). Stocks still seem to have the heaviest weightings but as treasuries have moved rapidly toward 3%, I was wondering what rate do you think a shift into a heavier fixed income weighting in a balanced portfolio should occur. Thanks for all you great work.

Q: hi team,

What's your view on low vol etf vs. using dividend etfs

Q: Dear Peter and Staff,
My husband and I have recently received an inheritance of $200,000. We are concerned about the future purchasing power of our pensions and riff income due to the effects of inflation. Please recommend a portfolio strategy (including stocks) that should give us an ever increasing stream of income at a rate that is greater than that of inflation. Many thanks, I look forward to your answer.

Q: Peter,

I have an RRSP question. If you have Canadian ETF's with international exposure, is there a limit on how much of those ETF's should be as a percentage of your total RRSP portfolio. Lets say my Canadian ETF's with foreign exposure are 50% of my total RRSP portfolio, would this be allowed. Thanks

Q: I have $33,000 to invest for 2 years. At that time I may need some income and/or capital from it. I would appreciate any advice you can give on deployment of the cash. Thanks again for the great service and the education.

Q: Hi,

New member here but have a question as to your thoughts with regards to total portfolio diversification. Obviously the stock picks and model portfolio on 5i is limited to CDN securities. What would you generally advise in terms of percentage weightings of CDN, USD, and international equities? I am quite "overweight" in the CDN security area and try to purchase USD & international security ETFs to offset this.. Curious what your thoughts here are. Thanks!

Q: Hello 5i Group
I am a new member to 5i and to investing although watching and reading for the last year and a half. I see your Model portfolio. Is this " model portfolio" updated annually? then tracked for 12 months? If I am looking at this list now as an " investment start date" how do I determine which ones on the list you are still recommending as " buy" positions?
I am looking for a combination of income and growth. Based on your reports that I have read I have recently bought small positions in AW.Un, BEP.UN and HR.Un
Thanks for your comment.

Q: In my investment portfolio I own preferred shares, bought for safety and peace of mind in my investments. The preferred shares are from good stocks such as bce, banks, brookfield. The preferred shares make up about 10% of my portfolio. All these pref shrs are down quite significantly right now. Am I correct in my understanding that on the five year maturity these shares can be redeemed for $25. If this is right, would it be a good investment to buy more of these pref shrs right now while they are down in value and make more capital gain?

Thank you for your help

Q: Do you know how much money is on margin in the Cdn market and what kind of a percentage drop would occur is all that borrowed money left the Cdn market? Thank you.