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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 bought GE several years ago for its stable dividend (sigh). I have been pondering whether to let it ride and see how it recovers or if I should sell before it drops to nothing. Looking at what is being published goes in both directions as to whether it should be held or sold. From your Q&A it appears that you wouldn't suggest getting in. What is your position about holding a persons current position?
Read Answer Asked by Betty on April 05, 2018
Q: Would you comment on ICE on the NYSE, please. It has performed nicely since 2015 and wondered if their earnings, etc. bode well for the future. -- i.e., justify continue to hold in this market? Although it's been a "bit rocky'", it certainly hasn't suffered inordinately. (Is there a better Canadian alternative?)

I am wondering which sectors are good for "parking" money at this time (that is, to avoid the crazy volatility of tech, for someone who is always heavily weighted in tech). Is gold a good alternative?

Please feel free to deduct points as appropriate, since this is a two-pronged question.


Read Answer Asked by Sylvia on April 05, 2018
Q: Hello,
At some point 5i seems to have changed direction with Amazon. Earlier on you thought the p/e ratio was just too high. For instance, this was your objection to buying Amazon in July 2014:
5I RESEARCH ANSWER:
We think Amazon is a great, well-managed company, with excellent potential and a solid niche that it continues to develop. Clearly the leader in the space, it further consolidates its position nearly every day. It has $5 billion net cash. We like the 'company' for sure. However, the stock trades at 279 X forward earnings estimates, and we simply cannot get our heads around its valuation. It is a high beta stock, but this year the market is up and it is down 12%. We think there are better growth companies to own.
According to Yahoo Finance the P/E ratio is higher now than it was then. I am interested in buying Amazon amidst its current troubles but the cost really makes me question that decision. I am curious as to what exactly were the elements that brought 5i to become much more favourable towards buying Amazon?
thanks
Read Answer Asked by joseph on April 05, 2018
Q: Just a comment: a complete list of US preferreds, with daily updates, can be found at http://www.wsj.com/mdc/public/page/2_3024-Preferreds.html
Read Answer Asked by Kurt W on April 03, 2018
Q: I am heavy canada and have decided to diversify globally with ETFs on my own.
Bought some VE and VIG today off the CMS model portfolio list to start on the market dip today. I dont need ANY Canadian exposure so looking at adding positions in VEE, SPY, IWO. Not really interested in ZWU at 0.71 MER. Any preference on which you would add this week? Other options not on CMS portfolio. Balanced growth equity follower. 5+year time frame.
Read Answer Asked by Tom on April 03, 2018
Q: I have a question related to inverse index ETFs and payments of dividends.

I hold 100 shares of the New York-traded ETF "PROSHARES SHORT QQQ", ticker PSQ, which behaves in an inverse way to the NASDAQ index. Last week I received a dividend of US$4.01. Although this is a modest amount, I am very surprised that I would receive any dividend at all ! How can this be with an inverse ETF? (If anything, I would expect to have deducted the dividends of the underlying shares, as is the case with a "short" of an individual stock.)

Thanks for any clarification you can provide!
Read Answer Asked by Gregory on April 03, 2018
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