Investment Q&A

Q: Peter,

Bank profits are massively up. Normally they suffer when the interest rate differential between the deposits and loans is as squeezed as much as it is now. What is the big reason for the huge profit jump? Is it simply the loan revenue from mortgage lending, the reversal of prior loss reserves , the wealth management areas or something else?

Thank you

Paul

Q: Hi Everyone at 5i!!! With Biden’s objective to enhance American infrastructure, what companies and ETFs stand to benefit from this and which would be the best ones to invest in? The list can include the stocks that provide the raw materials to this project as well. Thank you , Tamara

Q: I am looking to lock in some profits and hold a little more cash at the moment. The above stocks are ones I've done well on but are feeling a bit stagnant at the moment. I still like them but looking for ones to sell that have the least FOMO. BNS is probably already a for sure as I am overweight on it a lot at the moment. I have losses from the market downturn so taxes are not a major concern. What of these would you consider selling first if raising cash? I don't worry about sector weights.

Q: Please provide me with 6/7 high growth stocks & 3/4 value stocks for a minimum hold of 10years especially for Tfsa , Txs for u usual great services & views. As a aside,when is u next appearance on BNN?

Q: Could you recommend 5 Canadian companies that show good growth in appreciation as well as dividend with a buy and hold strategy. Could you please rank them in value and risk.
Thank you.

Q: Light on industrials. Which would you favour today, 1 each in Canada and the US?

Q: Please explain the difference between "risk-on" and "risk-off" with regards to buying and selling stocks.

Q: I am thinking of reducing these 3 techs by 50%, then re-buying in November. Reason: rapid gains over the summer likely at risk due to traditional volatility in September. Maybe even do the same with MG until chip shortage gets sorted. Does this tactic make sense? If so, are there other obvious stocks you would include?

Q: Good afternoon,
I have about a 5% of both LNR and MG in my TFSA and have owned them since 2017.
Although I have seen reasonable returns LNR has lagged behind MG. I'm looking to sell LNR and get into something that has more growth can you please suggest two or three Canadian companies and a possible entry point.

Also I have owned AQN sing March 2020 and it has not done anything and thinking of switching over to POW BAM.A or any other suggestions and a possible entry point.

Thanks.

Joe

Q: HELLO

I have three Canadian banks, BMO, TD, and BNS.

I would like to sell one of them. Which bank would you recommend?

Also, I would like to buy ET.CA for secure dividend income. I would like your advice regarding this.

Thanks for your help.

Henk

Q: Good Afternoon Team, Thanks for your wonderful service. It helping me build a better portfolio. I have 2 stocks in Auto space Magna and Linmar. The current market value of both is the same. I know 5I is strongly recommending Magna. I am sitting on a good gain on Linmar and was thinking about switching it to Ford or GM. No tax consequences as its in TFSA. Have a long 3+ year outlook. The rationale for the same is to diversify within the same sector from Auto parts manufacturer to the Car manufacturer and look for higher growth over the years. Would you recommend the move, if yes which of the 2 stock you prefer or would you recommend something else. I have no other holding in Auto industry.

Thanks

Q: Hello Team,
Which of these do you prefer for long term growth and why?
Thanks,
Barry

Q: What are your thoughts on these two companies going forward ?
Thanks Steve

Q: I read your article about the correlation between stocks and bonds and it made me wonder whether this was a good or not so good time to purchase them? I read a little more in another article and it said that in the same historical instances, bonds have tended to do well after. Would you agree with this?
I only have room in my margin account so would CVD, CPD, and HAB be giving me interest as apposed to Dividends so there are tax implications?
Thanks!

Q: I would appreciate your expertise on Stelco current valuation; I have read your notes. STLC report states that current profitability results from both volume and price increases, and your notes indicate that the recent ore price fall and equity valuation hiccup is in response to fears of reduced demand. The question I have is whether the STLC recovery is likely to be sustained/built upon, for a significant number of years, or whether the industry earnings and prospects are simply volatile in the short run. We have Biden’s infrastructure program to which should bolster steel demand all around, STLC presumably has to purchase iron ore so their raw material costs should offset steel pricing variations, and current opinion seems to be that we are looking at positive momentum for commodities in general, which I assume is a long cycle event. May I have your take on these issues please and the outlook for STLC.

Q: Any real good news causing the BB go up almost 10%? or just another meme factor?

Q: Saturday’s Globe quoted ADN’s CEO as taking a look at selling carbon credits on a small portion of a piece of land that had already had a conservation easement. The contribution to cash flow is expected to be modest. Do you think this help reduce stock volatility? Will there be insurance costs to mitigate forest fire destruction? The west coast seems to be getting dryer and the east coast getting wetter so forest fires may be less of a problem with ADN’s woodlots largely located in New Brunswick and Maine. If carbon credits become a larger business this should help the lumber companies increase prices for their dressed timber...in essence by reducing supply. In a way it could develop into a bit of a squeeze against the US timber companies by removing “surplus” Canadian supply. Domtar, which is being privatized, with their large land holdings could see a good benefit. Any thoughts you have would be appreciated.
Thanks,
Jim

Q: If the infrastructure bill passes in the US, which it appears it will, would it be likely the tariffs would be removed, and if not how will that impact Stelco?
Would they look elsewhere for a cheaper product?

Q: I own these companies, some are doing great, and some I'm waiting to get my money back. I just sold TC energy, not really liking the direction it was heading and was thinking of buying enbridge. Did I do a mistake? Should I rebuy it? I'm looking for a 1 year hold. Or should I buy something different? In that case what do you recommend?
Thanks

Q: Two parter, no wrong answers possible. In my TFSA I hold Descartes, Kinaxis, Shop and CAE amongst others. I have approx $2000 or .5% to invest in one or two of the four. They are all less than full positions. Suggestions?

Which of the following would you move from a cash account to the TFSA - AC, ATZ or ATD.B? I'm leaning toward AC currently.

Thanks in advance, sleepless nights have become a thing of the past based on my subscription to 5i. Service has been invaluable.