Investment Q&A

Q: Peter and Team,

As someone with a portfolio largely in line with the Balanced Equity Portfolio, I am starting to work on building some US positions.

I have initiated what I would call a half-position in SBUX and am looking for the best names to start a US portfolio with. I still want the style of investment to match the style of the Balanced Equity portfolio. What are the top, say, 5 names in the US to move forward with? My first thoughts were AAPL, JNJ, and VISA but I don't know if I am out to lunch here. I always prefer names that pay a yield.

Thanks,
Marc

Q: I have held Novartis for a few years but it has dropped significantly over the last 6 months. I still have a 35% profit. I wonder if I should sell and invest in a more profitable company in the US or keep it. I have well balanced portfolio and Novartis represent <0.5% of its value. Could you suggest a few US names to consider?

Q: Hi, would welcome your latest update on this company. Is it still a good company or your general views on bottlers in general. Was there not a merger happening with this company this year or not? There has been no updates when this is going to close. I'm not sure when or if there are now concerns with the deal transaction. Thanks.

Q: could i please have your thoughts on this c-hedged u.s. momentum fund.

thanks, david

Q: I am a senior with RRIFs and TFSAs. I am not currently living off these but could in the future. I read questions in this space about income producing products such as XHY. These look good but, frankly, I have a great deal of difficulty investing in a product with a total return of just 21.08% over the past five years, or just 4.2% average per year, when I can invest in XST (Canadian Consumer Staples) with a return over the same five year period of 168.8%. Yes, XHY has a great yield but almost no capital gain. And yes, XHY is less volatile but am I wrong, at my age, to be more interested in total return than just yield? I am not afraid of some volatility and am not a believer in the old outdated dictum of holding bonds in proportion to your age. And the total of my investable assets could not produce adequate income if I relied on yield. The standard deviation of the Consumer Staples ETF is still quite low at 0.35 to 1.2 and it has been by far, the best performing Canadian sector of the past 14 years. No, I don't currently own either of these products but may in the near future.

Q: I have a Scotia rrsp tirade account. I am looking to purchase some US stocks in this account. What are the advantages and disadvantages of purchasing these stocks with Canadian vs US dollars. At present my account only allows Canadian dollar purchase, I would have to open a US dollar account at $30/quarter.

Q: Further to my question on PayPal, do you think this stock has momentum or can you suggest a few that do for a diversified portfolio? I am OK with moderate risk.

Q: HI,
Your views on NVDA please.

Q: I was thinking of buying PYPL. Can you tell me what you make of the latest Apple news: a damaging hit or ?

Q: Hi. What is your opinion of Skyworks Solutions? Also I was wondering what the analysts'&#146; 3-yr projected revenue and eps increases are for it? Thanks, JR

Q: Hi 5i: Over the years I have heard several advisors on BNN say that Unilever is a good way to access emerging markets. I just checked RBC Direct and found 5 or 6 different codes for Unilever (including UN and UL) and am not sure which I should buy (if I buy). Could you advise? And what do you think of the Unilever for EM thesis? Thanks

Q: This shipping has been beaten up so BADLY and the yield is so compelling. I know probably shipping companies were suffering from historic low volume of global trade, but what is your guys' thoughts on it. I am more like a conservative income investor, so I think why don't buy a bunch of companies at low prices while gauging 12% a year? Sound like a good idea. Please give me your thoughts. Much appreciated!!! Tao

Q: Hi, if I had to choose between Starbucks and Premium Brand Holdings, which do you think will be better investment for the long term. Thanks.

Q: Hello 5i team,
If it is in your mandate, I would appreciate some precision on the options strategy that you proposed. I Have been using it and doing quite well. Recently my option for Calm was assigned at $52.50. The price today is about $51.50, or so. I notice that the price swings of Calm can be quite large. So, my question is whether I should wait for one of these swings, letting it go to say, $49 or $48 before buying again and selling an option? or, would I be better to simply buy when the option is assigned and start all over again, not waiting for the fall in price?
thanks

Q: For a diversified portfolio, would you choose DFS or FNV for roughly a three year hold? Thank you again for your careful answers to members' questions.

Q: I would like to purchase an ETF in a high yield bond fund similar to XHY but in US$. What are my options and which one would you recommend?

Q: I hold JPM and INVN in my US portfolio. INVN has not done much and JPM seems to be too dependent on the Fed.
What is your opinion on these two stocks and would I be better off selling these two and buying GILD.
(also own BRK.B, CVS, INTC, IWO, QQQ, VIG in my US account)

Thanks

Q: Your thoughts on etsy please.would you buy this or suggest an other stock.
Also I am thinking of adding to SPB.TO ,you think this is a good idea?

Q: Peter and team,

I have holdings largely in line with the balanced equity portfolio. I've been considering adding some US stocks like SBUX, APPL, etc., but I have a question. If one holds the BE portfolio, is there really a need to add more US/global names? It seems the names in the BE portfolio have well diversified earnings sources and do business all over the world. Are we really adding anything with the out-of-Canada stocks?

Thanks

Q: AMGN seems to have a broader range of products on the market than GILD which appears to be hepatitis-c drug weighted, so why is AMGN not the better stock to purchase in your view? Thanks for your take vis-a-vis these two US stocks.