Investment Q&A

Q: Dear 5i
I currently own Dynamic Active Core Bond Private Pool DYN3900 as part of my portfolio with my previous financial planner as part of my fixed income .
I`m thinking of selling it in favour of CLF,CBO,CPD and XHY as recommended by 5i.
Do you see this as a good move or do you see any compelling reason for keeping it ?
Thanks
Bill C.

Q: Could you please suggest 4 names to be held in a TFSA, willing to take a medium to high risk, I would not want any names from the balanced equity portfolio.

Q: Hi the great 5I team, following Harry's question on ask and bid price, how unbiased is the market maker? Your answer seems to suggest never put in a market order ? Thanks always.

Q: I am considering realizing some capital gains now at the 50% tax rate in case there is an increase to say 75% in the fall federal budget. How and when will I get more info on the fall budget? Will there be an announcement at some point?

Q: Hello
Could you please tell me averaged over time what has returned more to an investor dividends or share price (broad market). Or worded another way how much money is paid out in dividends and how much is from share price increase. More of an economics of the stock market question. Is there a value? Example on average $2Billion is paid in dividends and $2Billion is share price increases. This question pertains to the TSX but are all stock markets similar in their returns. Thank You
Jeremy

Q: Can you explain currency hedging with a SIMPLE example. Maybe include when it would be advantageous to use a hedged product versus unhedged. I don't think I'm slow, but it's just not clear to me, and I may not be alone.
Len

Q: Hi, 5i!
Which European etfs appeal to you now? I have been considering iefa (as opposed to efa) and eufn.
Have a great day!

Q: What can you tell me about this small cap biotech it's obviously high risk but do you think it has any potential and do they have any products on the markets yet thank you

Q: I am attempting to cut down on the number of stocks that I hold. In each sector I am spread thinly between numerous stocks. I am looking for growth stocks and small amount of dividends. My holding is for the medium /long term and assuming that I am fine with asset allocation. In the utility sector how many of these should I keep and which ones?

AQN, ALA, ENB, ENF, IPL, PKI, PPL TRP, HWO.

Thanks for the great service.

Q: Hi Peter & team,
What would quantitive tightening do to the markets if the feds move ahead with that, and which investments would benefit the most?
Thanks!

Q: This is not a question per say but a large thank you to you and your staff...we have been investing since 2006 and have been members for 2 years or a little more ...we are invested fully in the balanced portfolio with some of the dividend portfolio (approximately half) and five from the growth portfolio...the education that you have provided through answering questions and email updates have done more for us than all of the other avenues we have taken during our investing time...we were thrown into it when we elected to take a c.v. from our pension plan and up to that time had not had anything to do with investing but were led to your company thru BNN and your appearances...so thank you again and keep up the good work you are changing peoples lives....gene

Q: Hello Peter and Gang,

Would you please enlighten me on how prices are determined for stock trades. For example if I put in an order to buy a stock at a limit price of $1.00 (max that I would buy at). At the same time, someone puts in an order to sell the same stock at a limit price of $0.98 (minimum the seller would accept). Under this scenario, at what price would the trade be consummated? $1.00 or $0.98?

Also, if I put in an order to buy a stock at market price. Meanwhile for the same stock, one seller is asking $5.00, another one is asking $5.20 and yet another one is asking marking price. How would the "trade" price be determined in this case?

Thanks....

Q: Feature suggestion: Are you considering showing the portfolios directly on the website in the members section? I think this would add some convenience. Thanks for a great service.

Q: I am a young, long-term investor. With the recent strength in the Canadian Dollar, could you give me some recommendations for increasing my US and International equity exposure?

Q: A couple of years ago a guest on BNN stated that when a Canadian citizen has over $100,000 IN U.S. stocks, they have to inform the U.S. government. I this is so how does one go about telling the correct U.S. government department ? Thanks.

Q: Greetings Peter and team,

Your answers to members' questions are impressively lucid and objective. So, here is another one for you.

Jack Bogle, the father of the hugely successful concept of passive, US index fund investing does not recommend rebalancing in an individually selected asset allocation strategy. "If you want to do it, once a year is probably enough," he has stated.

Taxes and transaction costs diminish the benefits of rebalancing but Canadians have a lot of tax-deferred and tax-free room in their registered portfolios. Further, transaction costs keep coming down so that with trades above $10,000, investors can (almost) ignore them. With a million dollar trade they can do so, absolutely.

So why not rebalance every time that a given imbalance, say 10% develops?

Q: You have emphasized that it is better to invest in good companies than to try and time the market. However, when considering a new position, I have read that it may not be a good idea to enter a private equity fund near the end of a business cycle. Do you concur with this idea? Why or why not? Thank you kindly for your discussion of this issue.

Q: What is your long term outlook on oil I read that France and Britain have banned fossil fuels in another 25 years Consumption in the US has not shown any growth because of the fuel efficiency of the newer engines.

Volvo is going to stop producing gasoline engines in another three years

Canada does not seem to want to compete because of our carbon tax position

I almost want to throw in the towel on all my oil positions because I see consumption decreasing and oil supply increasing

Could you let me know your long term thoughts on oil as an investment and your recommendations

Thank you

Paul

Q: I have seen my investments total value in US stocks and non hedged ETFs going down lately, although individual stock price are doing OK.
I know it is very difficult to predict currency fluctuations, I would like your view and recommendation on how to protect my portfolio. Is buying hedged ETFs is the solution and what about your view on the Canadian dollar against the US $ and the Euro.
I value your opinion
Raouf

Q: Hello,
I have an RRSP account that I have made 40% this year and it is now in cash of $45k. I want to just invest in something the prevents or keeps losses to a minimum due to stock market corrections for the remainder of the year. What would be your recommendation for this money be for safe keeping while generating some return?

Thanks,
Rick