Investment Q&A

Q: Everyone, what are your investing red flags? Clayton

Q: Interview of 3 economists this month wich similar conclusions :"markets are extremely ( and historicaly) overvalued" , all anticipate some correction in January and "roller-coaster" after..No mention of sectors though ...Do you agree with this overvaluation thesis, and if this were the case ,what sectors would be less at risk ?

Q: I would like to thank you and wish all the 5i team a Merry Christmas and Happy New Year.
You have helped me with your great knowledge and advice during the year.

Q: A significant portion of my portfolio is allocated to SPY and QQQ. When i feel a need to hedge what are the pro's and con's of Shorting (using inverse etfs) as opposed to just selling the SPY and QQQ positions.
I'm not trying to sidestep a routine pullback (< 10%) it is more the corrections (10 to 20%) or Crash scenario's that i'm wanting to protect against.

Q: Where can I get value and risk metrics (like Sharpe ratios) at a reasonable price? I currently only have a free Koyfin account.

Q: I want to convert USA to CDN. I usually convert USA / CDN dollars or vice versa using stocks trading on both platforms. Is this same as using Norbert Gambit method.

Which option would you recommend that is more benefits

What are your thoughts on USA dollars.

Thanks for the great service

Q: Regarding my previous question on Dec. 2nd. I want to make sure I understand clearly so would you please elaborate on what is meant by ¨we think a broadening out of market cap exposure (a little bit) into VTI makes some sense.¨? Thank you.

Q: Dear Peter et al:

Thanks to your persistent AND consistent faith in some of your high conviction stocks, my portfolio has done well! I just renewed my 5i Bundle subscription! (Your favourite pick BN alone paid for a few years worth of subscriptions!) My only request is to "fix" the search function in your ETF/MF Newsletter! Long over due my friend!!

I have asked this question several months ago and your answer once again proved VERY profitable! I had asked a few questions from different angles about NON-Correlated assets. Private Equity and Utilities and a few others ere mentioned by you. ALL of them are up till date!!

However at this current point in this cycle, post- election phase, how would you structure non-correlated assets? (To dampen my drawdown in Large caps/Tch/Financials etc., ) Any suggestions?

Q: Could you provide two etfs (one for us market and one for Canadian market) in each sector. Thanks

Q: Dividend rates - stock seem to be popular when they have a high dividend rates . A stock paying 4% making a payout (will say quarterly), pays the 4% then the stock drops 4%, so what you get on one hand is taken away on the other. Basically, a growth stock would be a better play than a dividend stock. Please give me your opinion.

Q: Explain to me, when you tell a client to take a half of a position, how does that work? Say you want to invest $10,000 in a stock, do you buy $5000 say today and than what do you do? Buy the remainder when the stock goes down, or when the stock has gone up.
Thanks Again

Q: I turned 71 this year and I am pulled between GROWTH & DIVIDEND stocks in my RRIF starting in January. Am I wrong in thinking that it does not make a difference, if: (I do have growth stocks in my Cash & TFSA accounts).
My Tech & other Growth stocks appreciate by 6% or more and I withdraw 6 % via my RRIF, or
Withdraw 6% of my Dividend stocks? Compounding does work, as I bought $20K of RBC a few years ago @ $112 & is now @ $172. Tried the same with TD which did not work.
Obviously, the idea is to not deplete my assets by the RRIF withdrawals? Am I right in my thinking?

Thanks!

Q: Hi, This is related to Taxation. I sell BCE in personal cash account, book loss against gains in the same cash account and then buy BCE under wife cash account. Will i be able to book loss under personal cash account? Thanks

Q: Hi 5i Team - Your three portfolios for Canadian stocks are very valuable and this includes the updates which I pay close attention to. Just wondering if you have considered developing one or more portfolios of U.S. companies, not necessarily using all the same criteria as for the Canadian ones, but something along the same lines.
Thanks.

Q: Hi 5i,
I've searched the miscellaneous question category back to early September and, surprisingly, haven't seen this or a related question:
It appears the chances of a Trump win in 10 days' time are at least 50/50. He has said he will impose 10-20% tariffs on everything the US imports. He has said he will look at the USMCA agreement, which could mean he'll just tear it up. There's no real reason to think he won't do the things he says he's going to do, and he may well do a whole bunch more, economically and trade related, that he hasn't talked about. Whatever actually transpires, his economic policy is likely to be very disruptive, both in the US and abroad. As Canada's largest trading partner (although we mean considerably less to the US, relatively speaking) the impacts could be significant here.
Do you agree the impact on Canada could be significant, what do you think the impact(s) might be and what, if anything, would you recommend a Canadian with a diversified portfolio of Canadian equities do to Trump proof the portfolio and reduce the shock?
Frankly, I'm worried ...
Thanks,
Peter

Q: What are your thoughts on weekly covered call strategy ETF that pays you weekly dividend.

QDTE and XDTE.

Thanks for your excellent service.

Q: I know you prefer to purchase US stocks in US currency. Does this apply to US Bond ETFs as well? Further, I'm trying to determine the percentage of corporate and government bonds to purchase (15%). Is the risk/reward associated with each type of bond ETF very different? I'm assuming that corporate bonds are riskier than government. Any insight or resources that could give me guidance would be appreciated. I appreciate any help you can provide.

Q: I am setting up a TFSA for my wife. I have been managing my own TFSA for 7 years but my wife has maintained her account with a BMO investment advisor. We also both have RIFs managed by the same advisor. My TFSA has far outperformed the accounnts managed by the professional (thanks to your advice) but my wife is very risk adverse. She has about $100 K to invest. We are both in our 70s and don't have pressing needs for the cash. Could you. suggest a basket of Canadian/US stocks/etfs that would provide some low risk growth with a 10 year horizon.

Q: Is there a List of Companies with Monthly Dividends somewhere? Thanks!

Q: please give me options for free websites that I can track my stocks on. (I was just using globe and mail but no longer subscribe.) I like the ability to see performance over 1 week, 1 month, 3 months and 1 year, along with the usual dividend data

thanks