Investment Q&A

Q: Hello Peter,
I will greatly appreciate your thoughts on my thinking process as I construct my portfolio for this year. I would like to know how closely your thinking aligns with mine and what would you do differently.
I am a retired senior, not risk averse yet mindful of the necessity to curb excessive enthusiasm. I like to think I keep the risk to reward tilted towards the latter.
My thinking goes like this. I expect the Canadian economy to go through a mild recession or at best ride the US economy to <= 1% growth. Hence, I want to allocate 30% Canada and 70% US (including marginal international through ETFs).
I feel that since interest rates have peaked, the stock market should return higher than historical average this year. I think the allocation should be 20% income, 25% balanced, 30%growth,10% investor suite and 10-15% trading opportunities. I think that automated AI/technical based trading software will have a larger presence, making the market a little more volatile and provide with trading opportunities.
I also think that more interest rate cuts in Canada than the US, the income portfolio should be all Canadian. High yielding stocks should provide capital appreciation as well in this environment.
I am not considering Shopify and CSU as part of a portfolio. I already own them and they are qa significant part of my assets. Any adjustment will have significant tax consequences. If required I will take decisions independent of the portfolio.
I look forward eagerly to your feedback.
Regards
Rajiv

Q: Hi 5i,
A question regarding TOU:
I've reviewed its website - very impressive and informative by the way! - and can't find any indication that TOU intends to send gas to the Canadian west coast for export as LNG. All gas it markets for LNG export seems to go through the US to the east coast or the Gulf.
I'm wondering if I understand this correctly and, if so, why wouldn't TOU take advantage of west coast LNG facilities in Canada and is it missing out by not doing so? (I know the TOU management is very smart so if they don't send gas to our west coast there's no doubt good reason - but I don't know what it might be ...).
Thanks for any insight you're able to provide.
Peter

Q: Hi, Can you suggest some chip equipment makers and your thoughts on them.

Cheers, Chris

All the best for the new year to staff and members

Q: can you tell me 1) if there is any difference in XEF and ZDM in terms of tax efficiency and 2) which accounts are best to hold these ETFs in in terms of tax efficiency (please rank from best to worse) ?
thanks

Q: Hello
On Jan 4th, I asked a question about the best place to hold VGG for tax efficiency. I was told that a TFSA or RRSP would be best. However, I read an article by Moez Mahrez in Canadian Money saver and looked at the tax efficiency table posted on the same website. If I am correct in my interpretation, both of these sites seem to recommend holding an ETF that trades in CAD but is US listed in a RRSP first and then a non-registered account because the dividend that incurs US withholding tax is recoverable in the non-registered account. In a TFSA, the dividend incurs withholding tax but it is not recoverable. Am I correct in my interpretation?
thanks for your help

Q: can you tell me if holding VEE, ZEM, or XEC has any advantage over the other in terms of tax efficiency? Also, can you rank order in terms of which account emerging market etf should be held for tax efficiency (please rank best to worse).
thanks

Q: Good morning,

I'm in search of a Low to Medium risk Monthly Income fund that will provide a an additional and reliable income stream for next 15 to 20 years with no legacy issue. The amount to be invested is $100,000 and I'm looking at taking out $600 per month for the next 15 to 20 years.

Q1. Of the two Monthly funds mentioned, which would you recommend and why?

Q2. Would you kindly recommend your best mutual fund idea for a monthly income fund?

Q3. Would the purchase of an annuity be a better option?

Thank you and I will await your sage recommendation for a Monthly Income Fund.

Q: Under Investment Q & A, as an example, Target price history - PYPL, current high target price $118.00, the deviation (line with dots) recent 13.9 -- can you explain what this indicates.

I am a long term member and I am noticing the below more than in the past:

A lot of questions have "take as many credits as needed". For instance, the longer the question the more credits are required or the more research done the more credits required, or the more companies asked about the more credits required? Please advise.

Thank you
Appreciate the years of good service.

Q: Interested in Aritzia, can you provide a good thesis as to why this investment is worthy of a buy or hold? Capital IQ estimates revenue growth for 2024 to be only 4.6%, how come this is so low? Is the increase SG&A expenses a result of the recent inventory surplus and do you think it will resolve itself within the next couple of months? Lastly, how many shares were issued after initial IPO offering compared to now and with low ownership from management, why do you like the company?

-Thanks

Q: Looking for investment ideas/opportunities for my TSFA account which already holds the following ( BAM, BN, GSY, LMN, NVEI, TOI, LIT:US). I am 68 years and have no plans to withdraw from the account for the next few years. Also, could you please suggest entry price points for said securities.
Much appreciated,
Francisco

Q: I am considering adding BH to my TFSA account. Please advise if purchasing BRK.TO is the best way to do so. Also, is there any other issues I should be aware of regarding this "US stock" to be held in a Canadian TFSA account. Thank you

Q: For a TFSA account. Only interested in best growth prospects over 3-5 years. Please rate these by your preference at this point. Thank you.

Q: Further to my question of Jan 6, I can't see that the distribution has been stopped? Can you please confirm that for me?

Q: In your answer this morning you show P/S for CSU as 5.5, however in your company data it shows as 8.8. Why would there be such a difference?

Q: I'm a retired somewhat conservative investor content with slow steady growth and a dividend helps as well. I have been happy with my diversified portfolio but constantly struggle with should I or should I not make these changes;
1. Sell T (non-registered account, tax loss) buy BCE?
2. Sell AAPL (in an RRSP) and buy NVDA?
3. Sell TD (non-registered account, tax loss) and buy BNS?
4. Sell ATZ and or DOO (both in a TFSA) and buy what?
Thank you

Q: Hi,

I'm low on healthcare according to the analytics tool. I have held XHC for a few years now and it's showing just a small gain. Is there anything a bit more "growthy" or should I just add to XHC?

Thanks
Robert

Q: Can you explain the details of the TRP spinoff that is planned for the second half of 2024 please? I invested in TRP for the dividend income. What do you recommend I do after the spinoff is completed knowing dividend income is the highest priority when investing in this company?

Q: Since noting the increase in the holding of IFC in the 5i BEPORT I have compared it to my holding in DFY to see if I should switch, but what I see is that IFC trades for a much higher PE and that performance since Nov 2021 has been only 27% vs 73% for DFY.

I understand that IFC is the industry leader, much bigger market cap, higher dividend etc but what is the real attraction here or is it that DFY is too small for the BEPORT?

Q: I am thinking about taking a full position in either Altagas or Keyera. Could you please provide your thoughts on both companies.

Thanks

David

Q: Pls give an example of the curency hedged CDRs for a rising/falling $Cdn vs $USD ? For example, if one buys the CDR for MSFT and the $USD falls by 5% vs $Cdn and MSFT stays the same value in $USD and you sell, do you get your original $Cdn funds back (less fees) ? Is it the same with a 5% drop in $Cdn vds $USD ? Thank you.