Investment Q&A

Q: We started a family RESP for our grandkids in 2007 with 3 TD e-funds on an equal PAC basis (MER's are 0.33% to 0.51%). The account now shows Canadian Index Fund (TDB900) value at 30%, Dow Jones Index (TDB903) at 38%, and International Index (TDB911) at 32%; I sometimes think about rebalancing but think perhaps doing nothing is the best approach as the laggards may catch up in time. Would 5i have any different thoughts about the way these funds are invested? Funds won't be withdrawn till 2021 at the earliest. Thanks, J.

Q: Good day folks. a question regarding U.S.investments in a Canadian exchange etf, now that the Cdn $ is trading around 90 cents, does it make more sense to use a hedged etf in Cdn $ rather than a non hedge etf in either Cdn or U.S. dollars.

from cold Panama City Beach, Fla, thanks

Q: As much as I appreciate the importance of diversification and investing outside of Canada, the low Canadian dollar is making it very expensive to buy into the US. Is it still wise to invest in the US or would it be best to wait for the dollar to rebound to maybe the mid 90 cent range?

Thanks and as always, appreciate the great advice.

Paul

Q: Peter-with the recent landslide in the Cdn $ -what wouls say your top five equity ideas be in Canada that perhaps have not moved as much as this should reflect -I can see some Reits with big US exposure -but others?........

Q: i am loosing on these stocks,which stocks you think i should hold and which i should get ridof.
AGI,AX.UN,ACQ,BYD.UN,GIB.A,DH,EFN,L,MDA,MCR,SGY,TCK.B.i DONT WANT TO SELL GOOD ONES AND KEEP NOT GOOD ONES.

Q: would you recomend sitting on some cash at the present time?
At the turn of the year most experts seemed positive on both the Canadian and U.S. markets. Now there is a significant number of the same people calling for a general, large, pullback. Self fulfilling prophecy, perhaps?

Q: What would you pick to be the top growth sectors in the TSX this year? Thanks!

Q: Hello 5i,
My question relates to asset allocation (between fixed income and equities) etc.
There are a variety of suggested formulas for determining how this allocation
should be made, most based on factors like age, health, income etc.
Examples include (100 - age = % to allocate to stocks) or
(age x decimal of age = % to allocate to fixed income). There are many others too.
My questions are :
1. Is there a formula that you would recommend
2. In a situation where a couple have non-registered Joint CA$ and Joint US$ accounts,
as well as separate RRSP accounts, should this allocation be applied to each of these accounts,
(or only at the total of all accounts level).
And for the non-reg. Joint accounts, how would you handle an age difference of > 6 years ?
Thanks very much, your advice is greatly appreciated.

Q: Some think that 2014 will be the year for the Cdn stk mkt to shine. If you agree, what sectors would be best and what mutual fund(s) would best cover these? (I have mainly stocks in my accounts that are similar to you model, but am trying to get back to a few good mfs as well.) Thanks for you help. Alan

Q: Hello team, thanks for the well reasoned reply to my AYA question. I am thinking it may be time to add an industrial mining company to my portfolio, like a VALE for iron ore or TCK or FM in the coal or copper space. I have no miner exposure presently. Your only miner is in gold. What would you do here? Are you tempted to add one to your portfolio as a value play on eventual global recovery to include these stocks. Many thanks.

Q: Do you currently see markets as over bought? If not, where would you put new money? Thanks.

Q: Hi Peter and Team,
Can you recommend a manufacturing stock or any other stock that should prosper from the lowering Canadian dollar?

Q: Hi Peter and gang, I would like your opinion of Peter Schiff of Euro Pacific Capital. Especially his views of a financial future for the United States that falls somewhere between bad and terrible. I know that it is hard to contemplate an apocalypse but like they say, "Just because you're paranoid, doesn't mean they're not after you."

Q: Hello Peter, keeping in mind the long term and maintaining a balanced 20 stock portfolio closely mirroring the 5i Model portfolio is it advisable to add some US exposure of 10 to 15 % to the portfolio presently?
In the question answer section of 5i the following ETF’s SPY, IWO, and VIG seen to be the choice. For the long term would you suggest 3 equal parts of the above ETF’s or go mostly for the growth potential of small caps and recommended only IWO? Thank you for providing such great insight, Ronald

Q: re......deflation. I feel it is a possibility we may see real deflation where I live subject to the US dollar question of course. I am not worried about it from a local point of view but from a Canadian Macro economic point of view if it got going it could be worrisome. I believe we would have lots of notice with time to have some form of plan ready to go so to not have one is just plain crazy. But I can only find blank faces when I ask for opinions. Since I am convinced I must stay invested, I is moving to consumer staples a reasonable move? What moves might the bank of Canada do? Who is a deflation guru with an answer?
Is there a place to hide?
Thanks very much

Q: Hello 5I Team: I currently hold XTR & CIG686 for retirement income. If they comprise 50% of core portfolio and therefore both at about a 55% holding of bonds make up about 27% of portfolio, would you consider these types of bonds suitable for risk diversification? I also keep some cash and GICs in addition to core which amount to about 15% of core. Thank you, Larry.

Q: Peter,

With a weaker CAD, which companies do you think will benefit from rising USD and have Canadian based expenses?

Thanks,
Zach

Q: With the Canadian dollar down what areas do you feel benefit-any specific canadian stocks for example.

Q: I have 5600.00 to invest in my TFSA. Currently have these holdings with following % of total portf.: AW.UN (19.5%); BYD.UN (22.6%); CGX (15.2%); DH (12.5%); FRU (17%) & IPL (13%). I am 61 years old and retired. My focus is preservation of capital, safe dividend paying stocks and some growth. Could you suggest what would you consider appropriate to add (or replace) to my TFSA given my focus and what is already in this portfolio.

Thanks,
Joseph

Q: Hi What would happen if the us dollar droped substantially and created hyperinflation? What would the effect be to the canadian dollar and market? Would gold and silver go up and would it be better to hold the equities or the physical commodities?