Investment Q&A

Q: After selling my business I have a large sum of money to invest - this money is the main part of my retirement savings. I plan to retire in 10 years, so my main objective here is safety of principal with moderate growth to surpass inflation. Inflation is my main concern - with anticipated US growth and CDN stagnation I see it picking up in Canada quite soon. By this very reason I am concerned about investing in bonds (incl. real return ones) or TIPS. What kind of allocation (sector, country, stocks vs. bonds) would you suggest in my case? Any creative solutions to hedge against inflation?
Thanks.

Q: What do you think of the ALA and CAR.UN bought deals?

Q: Putting the finishing touches on my porfolio review and trying to decide between Loblaws and Metro. I am a long term investor and don't need income yet but I do appreciate the value a growing dividend payor provides.

As well as MRU has done recently, I am thinking that the Shoppers addition might ultimately provide more growth and profitability for Loblaws. I am thinking of buying only one of them (5% of a balanced, 25 stock portfolio) to avoid having too much diversification but is this a case where a half holding in each is better?

Thanks for the insight.

Paul F.

Q: Hi 5i - just wondering about sector weightings - your answers generally indicate that one shouldn't invest more than 15% in one sector, however it appears as though the model portfolios have large weightings in technology and financials? Which sectors would you feel comfortable right now in "over weighting", if any? Thanks!

Q: Hi,
I hold potash and I'm down about $5/share at current price. I'm fine to hold pot long term given the yield (assuming it's safe) and outlook for the Agri space. I am considering adding to my position to lower my cost and add more yield to my portfolio. Pot is about 3.0% of my portfolio. What do you think about adding at this level or would you advise waiting until the bid for K+S is determined given the stock price could fall with shareholder acceptance of their 41 EURO bid. On a side note, what do you think about buying some K +S?
Thank you

Q: Regarding iFabric….2 questions. First they were just listed on the TSX and secondly the insiders own 77% of the share structure. I understand that these are both positive conditions. However could I have your comments. Thanks

Q: I am thinking of increasing my positioning in NFI. It has held up well in the current market, pays a reasonable dividend and I think, should have some growth in a positive U.S economy, even if interest rates increase by 25 basis points. How significant are insider holdings? Institutional holdings? and has the increase above $1 billion mkt. cap.already been priced in. Another sentence ending in a preposition. thanks for all you do.

Q: BMO have ETF's that have "covered calls"
Could you explain what a covered call is, and are there any tax implications with these products?

Q: Hi team! I have some money that I want to park and not think about too much for about 5 years, but, I do need some income from these funds. I’m thinking of a diversified ETF portfolio. Could you suggest 5-8 varied ETF’s that pay a decent dividend? Thanks very much. So appreciate 5i.

Q: As a recent IPO, dividend paying, growth by acquisition, relatively high ownership by CEO, in a high profile industry, would you consider RAY.A to be a reasonable, risky or speculative buy at this point? Has it caught your attention and what insight and opinion can you give, please?

Q: This question was asked by Curtis on September 16th.
Your answer: We would opt for a more balanced portfolio, adding some tech, industrials, consumer products (which should be OK in a downturn) and other sectors.
Could you elaborate with one or two company names you would be comfortable with that would fit Curtis's vacation portfolio?
Would you keep REITS at 20% weight?
Thank you.

Q: your comments now that they've "coupled" with amazon. thanks

Q: I think esports will be a huge growing industry over the coming decades. Do you know of any good public companies that are in this market that you could recommend for a long-term position?
I heard that CGX just bought an esports company, which I think was smart, but it is very small compared to the size of their business.

Thanks!

Q: Stock charts , or TMX money both allow you to compare performance between stocks in a sector / I find it helpful in getting a pulse .before buying .. Union Pacific and CNR both were battered , and I bought CNR at a recent low ... I didn't have enough USD but I would have bought Union Pacific as well... I have never lost on Rails ( touch wood ) . I follow ( CP, CNR, UNP.US, CSX.US ,NSC.US, KSU.US ) ... Making charts is easy, but doing due diligence on six companies is a day's work for me ... I would like to shorten my list / which are your faves ? ... and do you feel this reversal in rails has legs ?

Q: Please comment on the CEO retirement. Given time, do you think our investment thesis is still valid.

Thank you!

Q: Both SJ & Byd.un are to be added to TSX composite.I understand your reply on the latter today. A question--Will it results in more volume temporiarly as there is a requirement for some to buy stock added to the composite?.Appreciate your normal great services & Views. P.S.Saw Ryan on BNN today

Q: Hi Peter & Team,
I plan on taking a sabbatical for a year after working overseas for 10 years. I have 1 mill. approx CAD to invest and want to live off dividends, travel and not worry about my portfolio. Therefore I want a SWAN portfolio and am thinking the following:
Financials 20% (BNS, TD, RY, BMO) - Avg Yield- 4.4%
Pipeline/Utilities 20% (ALA, AQN, ENF, IPL) - Avg Yield- 5.52%
Telecoms 20% (BCE, T) 4.4%
REITS 20% (CSH.UN, AX.UN, HR.UN, CAR.UN) - Avg yield - 6%
Energy 20% (WCP, CPG, HSE, TOG) - Avg Yield - 7%

Average Yield - 5.46%
As an non-resident I simply pay 25% tax and therefore would have a budget of $41,000/yr or $3,400/month.

What risks am I not considering with the above?

Are my stocks and sector weightings reasonable?

Q: Mr. Smedley had T.TOY as a top pick last night. If one were to buy a hundred shares to a growth portfolio would this be a wise move. (I already own all stocks in all 3 of your portfolios). You have never had a question on this stock.

Thanks for the great service.

Mike

Q: Hello,

- Is it a good time to add to VLN ? Any reason outside the weak market for the stock to be down ?

- PHK is going down a lot these days ... Can you explain why ?

Thank you

Q: My 20 year old son has a question for you as follows:
Hi peter,
I have a tfsa which i am looking to add to. My holdings are the following:
AVO- 10.8%
BNK- 10.1%
ENB- 15.6%
XTC- 15.6%
OTC- 15.4%
PHM- 5.4%
RMP- 7.7%
WIN- 18.8%

I was considering adding BNS & SLF.
OR
I was considering adding a large position in a mutual fund.
Would you please recommend what to add & potentially what i should sell.

Thank you!
Chad