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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: Hello 5i,
Love the new website. you must have put a lot of work into it. Thank you very much for your efforts.
I have been concerned about what is often called the 'housing bubble" in Canada. I am certainly no expert but house prices to rent, to income, per capita gdp and just the general high degree of debt in our country.

Knowing that I am not an expert in this area I don't want to bet too heavily on this fear. So, I think I have found a solution and thought i would run it by you for your commentary.
I don't have a lot of real estate other than my own home. So I am not worried about that, I am going to live here anyway. But, it seems like the Canadian banks would be hit if there was a big drop. I don't know if you know of other industries which would be affected?
Now, I have about ten percent in fixed income and I think all of that is in US funds in a rrif. I thought I might shave off some of the banks and buy my fixed income in Canadian funds. Then I would invest all of my US funds in stocks.

The big problems with this plan, as I see it, are capital gains and especially hold ing my fixed income outside a registered account ( because this is where my banks are, from which I would be raising the money). Of course at todays rates the taxes on the fixed income outside the sheltered accounts wouldn't amount to that much anyway. I know that you speacilise in straight forward questions on stocks but I notice that you sometimes venture further afield and reply to questions of strategy. So, i hope I qualify for this latitude. There may be a few questions in here so take off the points necessary
thanks
Read Answer Asked by joseph on November 07, 2017
Q: Hi Peter, Ryan & Co.
Can I get your assessment of Riocan's latest quarterly results released last week?
It seems to me that Riocan is now turning its strategy to redeveloping some of its retail locations into mixed retail/residential communities (with partners), which seems to make sense given the "Amazon effect" on retail. I would think this would be a great opportunity for them in the future, with more profitability than retail leasing alone. What are your thoughts?
Many thanks,
Brian
Read Answer Asked by Brian on November 06, 2017
Q: I'd like to know what you think of MRG's Q3 report that came out today. I would especially appreciate your assessment of (1) potential growth and (2) your calculation of Payout Ratio using AFFO (not FFO, as they do, which tells me nothing without knowing the maintenance expenses). I must admit I get very suspicious of reits that only provide FFO and not AFFO.
Read Answer Asked by arnold on November 01, 2017
Q: Following your comments about retail REITs a few days ago, I reviewed my REIT holdings and my only retail REIT is CHP.UN. Their properties are almost exclusively Loblaws-branded grocery stores, with a small mix of other retailers. My view in buying this a few years ago is that people have to eat, but at that time there was really no alternative like the recent Amazon move. What is your view of CHP.UN in general, and would you continue to hold it for income.

Thank-you
Read Answer Asked by grant on October 31, 2017