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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: I have multiple questions in this post, feel free to take as many credits it requires.

I am right now rethinking my portfolio and your advices-suggestions would be greatly appreciated. I am investing for the long-term 10+ years

In the past 2 years, the size of my portfolio has tripled, mostly due to savings. Both my RRSP and TFSA are full, and I am now putting my new savings in an unregistered account. My full position (5%) size is currently between 8 to 9K$. When I began investing, in my TFSA my positions were more of 2-4K$. Here's a list of what stocks are in which account :

TFSA : ATD.B, GSY, MG, NA, OTEX, PHO, POT, SNC, T, and TD
RRSP : AQN, FTS, GUD, SIS, KXS, SLF
Un-registered : BAM, CCL.B +50K cash

I was thinking of selling SNC to buy back WSP in un-registered, and also moving TD to un-registered. So I could add to PHO, OTEX and GSY (my smallest positions). Is there other stocks in my TFSA that would better fit in another account? Do you have suggestions?

Also, I know I have some more growthy names in my RRSP that would might be better in a TFSA, but that's where I had room at the time of buying. Do you you think it's worth moving stocks from this account or it's OK leaving it as it is? I am at least 30 years away from retirement and don't plan to use money in my RRSP soon.

I would like to add gradually 4-5 positions to my un-registered account with my cash position. Do you have suggestions for quality long-term stocks (as I want to avoid as much as possible to sell in my un-registered) that could improve my portfolio?

Thank you!
Read Answer Asked by Julien on July 19, 2017
Q: 5i team :
I have some cash available (10% of portfolio) with the intention to have it ready if the market (TSX or S&P 500) go on a sharp downturn. Assuming that this does not happen what would be your recommendation for the safest of all stocks (or 2 or 3 of them) in case of a downturn in the markets. (I am asking for a yield of 2.5%) Most of the safe stocks tend to have high P/E ratios , which makes me think they will drop anyways. Thanks
Read Answer Asked by Alejandro (Alex) on July 19, 2017
Q: Good morning Peter,

Thank you for your thoughtful-as-usual, prompt answer to my recent question.

You feel that over the long term, a 50/50 portfolio (50% US Market Index ETF/50% US Money Market Fund) would return about half or less than one that is fully invested in the US Market Index ETF.

Writing in San Francisco's MarketWatch on Sept. 2, 2010, Jonathan Burton showed that such a portfolio "...has made almost as much money as the more aggressive, stock-heavy strategy over the past 25 years and topped it over the past decade."

Why would investors not reasonably expect a similar future performances?

Thank you.

Milan
Read Answer Asked by Milan on July 18, 2017
Q: I have 37% (200K+) of my portfolio in CN Rail. It is in a taxable unregistered account. I would like to diversify a bit but afraid of the tax repercussions with selling (Up 100%+ capital gain). Also can't find many stocks that have been able to beat CNR over the long term. CN is basically a monopoly and a diversified hauler of goods. Note my registered accounts are fully invested. I try to sell 10,000 of cn stock a year to invest in other stocks but at the same time buying 15,000 of cn.

1. Should i be concerned with such a high % portfolio in one company? What is recommended
2. Should i be so concerned with capital gains tax?
3.What companies should i be looking at with the selling of CN that has been consistent with future growth?
4. Should i continue with 10% of income spent on cn stock. first 6% gives employee an extra 35% of stock.

Read Answer Asked by Thomas on July 18, 2017
Q: The July 15th edition of the Financial Post carries an article with the headline "Worst drought in decades devastates Europe's Crops" with the article focusing on a wheat-farmer in the Tuscany region (province?) of Italy. After doing a quick check online it seems that drought is somewhat dispersed throughout regions in Europe.

Would this European drought be significant enough to impact global grain supply and prices?

Would this be time to consider purchasing POT?

Thanks!
Read Answer Asked by Chad on July 18, 2017
Q: I have A&W, CGX, and BPF.un in my consumer discretionary. I've been thinking of switching out A & W for TOY or DOL for diversification. Does this seem like a reasonable approach for a conservative retiree? Which would be the more stable choice for one in my position, or do you have another suggestion? Thank you so much for your continued help and advice. (CGX has done very well for me)
Read Answer Asked by M.S. on July 17, 2017
Q: Hi Peter, Ryan, and Team,

I am overweight in Consumer Staples and underweight by an almost equal dollar value in Information Technology.

Present holdings in Consumer Staples include ADW.A, ATD.B, ECI, PBH and SAP. (SAP is the only one that's down in value).

Present holdings in Info Tech include CSU, ENGH, KXS, OTEX, and PHO (PHO is the only one that's down in value).

Which stocks in the Consumer Staples sector would you trim/sell, and which stocks presently held in the Info Tech sector would you add to at this time? (If there are compelling reasons to add more Info Tech stocks, your suggestions are welcome.)

Also, is the thesis still the same for SAP? It's been a fairly disappointing stock, but of course your great recommendations have really enhanced our overall portfolio. Thank you!

As always, I appreciate your valued advice.

Please deduct as many question credits as you deem necessary.
Read Answer Asked by Jerry on July 17, 2017
Q: Hi Peter and Group. I have just taken some profits on WEF - I needed to lessen my exposure anyway. What is your top 3 stocks I should reinvest in? (regardless of sector) - I am a moderate risk investor. Thanks for the service
Read Answer Asked by Terence on July 12, 2017
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