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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: Hi 5i!

New member and I have found your wealth of knowledge very helpful in providing guidance for a relatively new do-it-myself “Core & Explore investor” and have prompted me to make some changes to my investment strategies and portfolio. My question is “Core Portfolio” management based and specifically regarding switching to Index ETFs from Index Mutual funds. I’ve been a regular monthly contributor to my RRSP built up and directing most of my funds towards a TD Canadian Index Fund TDB900 – e series and a lesser amount to the same e series TD International Index Fund TDB911 as they have very low MERs of 0.31% and 0.51% approximately. My strategy, since I dollar cost average into the indexes, is to continue to contribute to these TD mutual funds monthly but then funnel from them to ETF index funds so I can take advantage of the lower MERs of the ETF. Could you recommend ETFs to replace my current TD mutual funds? Would you also recommend adding a DOW Jones Index or another US index? What ratios would you consider appropriate for a portfolio? Any other thoughts are welcome and I’ll save my “Explore portfolio” questions for a later date.

Cheers!
Read Answer Asked by Duane on August 23, 2016
Q: August 22/16 ? asked by Rino

The answer noted that TSLA will either work out or not. The why not case is presented in the link below:

http://jeffcnyc.tumblr.com/post/149083643277/ducks

Consider sending this to Rino given the parallels with Northern Telecom.
Publish at your discretion.
Read Answer Asked by Russ on August 23, 2016
Q: Peter and Ryan,
I read recently that you feel the consumer discretionary and consumer staples sectors should be top priorities in a conservative income investor's portfolio. Would you please suggest 3-4 companies in each sector that you currently think would provide well balanced sector representation. Understanding your focus is Canadian companies, if possible, I would appreciate 1-2 American companies be included as well. As always, thanks for your most appreciated guidance.
Read Answer Asked by Les on August 22, 2016
Q: In a recent member's question regarding a conservative portfolio construction you said that there are good consumer discretionary companies that are growing income and dividends. Which ones in Canada and the US would you recommend other than the auto related ones? Many thanks for the great service.
Read Answer Asked by Derek on August 18, 2016
Q: With the devastating losses I’ve suffered on CXR (-85%) and PHM (-80%) my holdings in the healthcare sector are down to 5%. I was considering purchasing some IBB to bring it up a bit. After my experience with CXR and PHM I’ve become a bit worried about owning individual healthcare names and am now feeling more inclined to want the safety and diversification of an ETF. How do you feel about IBB or do you have any other suggestions? I already own GUD, SIS, and XLV.
Read Answer Asked by Steven on August 15, 2016
Q: Hello 5i,
I try to heed the advice to diversify into U.S. stocks because they have stocks which we just don't have here in Canada. I have been wondering what some of these stocks might be for a fairly conservative, retired investor?

Right now I have the following companies:
3M
Apple
Calmaine foods
Goodyear Tire and Rubber
Conagra Foods
IBM
Pepsico
Proctor and Gamble
Bank of America

I have Calmaine for selling options on and it may go some day. I know that no one likes IBM but i believe it will turn around and pays a good dividend in the mean time.

But, I was wondering what to add or subtract from this list in order to have a well balanced, U.S. portfolio?

I have thought of adding Disney and Johnson and Johnson. I have looked at your suggestions, such as EBIX, NOC, LLL, JPM, GILD and ITRI and they look very interesting but maybe not for a person in my position.

I would certainly appreciate your thoughts on this process.
thanks


Read Answer Asked by joseph on August 15, 2016