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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: For someone looking at a retirement in 2 - 3 years that will be funded by personal investments, I am having trouble formulating an investment strategy that would currently include fixed income investments. Fixed income securities seemed destined to only go down in value in the foreseeable future as interest rates rise so why would I want to invest in them? Pipelines, utilities and telecoms may also drop but their yield is currently quite good and secure and capital appreciation is always a possibility, if not a probability, in the longer run.

It seems to me that much of the argument for holding fixed income assets is to ensure the preservation of one's capital. But if I am ultimately going to invest largely in quality dividend paying stocks eventually anyway to fund my retirement is capital preservation the main concern? Isn't dividend "preservation" more the issue?

I feel like I am missing something because it seems that all advisors, planners and analysts strongly suggest there be some fixed income in a portfolio, especially as retirement nears. What are your thoughts?

Appreciate the insight.

Paul F.
Read Answer Asked by Paul on December 09, 2016
Q: Will be doing some re-balancing early next year and would appreciate your thoughts/ considerations/ suggestions.
Can. Tech :
Own CSU, DSG, and ENGH. Will keep CSU - which of the other two would be the better complement and the keeper?
Can. Industrials:
Own CNR, NFI, STN and SJ . Will keep CNR and NFI and leaning to STN due to SJ small over-lap with CNR but would appreciate your thoughts.
Thank-you.
Read Answer Asked by William on December 09, 2016
Q: Hello Peter and Ryan,
Without knowing my portfolio details, I know it is hard to give advice. However, I do have a diversified portfolio and am looking to add a long term growth stock and a dividend paying stock without using my cash. I have to sell a stock and replace with another. I constantly hear good things about Spin Master. I was thinking of selling Alterra Power corp and Brookfield Business Partners and use proceeds to buy Spin Master. Does this switch make sense? Kinder morgan (aside from protests) has had good news with government approval and potential sale of their assets. However, the stock is not moving which is surprising. Is it worth holding or replace with ENB and TRP to get some growth and dividends. Lastly, Magna and Linamar have had good gains. Time to sell or let them run? Please let me know. Thanks again
Read Answer Asked by umedali on December 09, 2016
Q: Hello 5i team,
Once a year, I look into trimming the number of stocks that do not seem to go anywhere in the foreseeable future.
After FSV split in June 2015 between CIGI and FSV, CIGI has dropped by 9% whereas FSV has increased by 69%; I'm thinking of selling CIGI
MDA also gives me trouble and I'm not sure what to do with it.
Please advise, disregarding their respective sector weights
Antoine
Read Answer Asked by Antoine on December 08, 2016
Q: I hold both Blue Ribbon Income Fund ( 6.4% dividend) and Canoe EIT income fund (10.2% dividend ) Blue Ribbon is 6% of my total portfolio and Canoe is 1% of portfolio. Would appreciate your thoughts on both of these and would you suggest selling and if so what would you purchase.
Second question, a little out of the box but if you wanted to start a risk portfolio, maybe 2 stocks, which ones would you recommend. By risk I mean potential to lose but with a potential upside to make a big profit in the next year or two. You might call this a speculation portfolio that has the money you can afford to lose.

Regards

Wayne
I just joined in July and do enjoy the information you put forth.
Read Answer Asked by Wayne on December 08, 2016
Q: maybe you can comment on nyx.
most people bought this stock because of eric nuttall who was pounding the table to buy it, i bought at 1.70 it went to 2.20, did not sell and then i sold at 1.50, i can guarantee you eric nuttall has been long gone from this stock.
why are your members holding on, this stock is not working and it will never work. we are back to my favorite subject IF I COULD ONLY GET BACK TO EVEN THEN I WILL SELL. dave
Read Answer Asked by david on December 08, 2016
Q: Are dividends on Bond ETFs taxable as interest? If so, they would not qualify for the dividend tax credit. Would it be wiser to look for dividend bearing shares such as BCE with a low beta and a good dividend that would qualify for the dividend tax credit?
Read Answer Asked by Donald on December 08, 2016
Q: NYX Gaming continues to trade lower each day and yet there seem to be a number of positives on this company. First of all is there a short position on this company or is this decline due more to tax loss selling. Secondly TDWaterhouse shows a debt to capital ratio of 52%. Should I as a shareholder be concerned about this especially since I am considering buying more. TD also shows the cash flow as $0.31 and the price/cash flow as 5.4. Do you consider these adequate numbers to offset the debt load. Thirdly are these figures from TD reasonably accurate and if not could you please advise. Thanks as always for the excellent service that you provide.
Read Answer Asked by Rob on December 08, 2016
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