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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: I must convert my RRSP to a RRIF this year. I want to add about 10 good company stocks that have 1,3,5&10 year compounded returns > 10% to boost the overall annual performance. I have identified the companies and now I want to pick the least volatile ones. I have data regarding beta, return on equity and debt to equity. I'm inclined to do my selection based on the lowest beta, highest ROE and lowest debt to equity in that order. Does this seem effective to accomplish my goal and/or can you suggest a more effective selection process? Thank you.
Read Answer Asked by Richard on May 08, 2017
Q: I'm looking at very long term investing. I like the buffet/jarislowsky style. I'm thinking years if not decades. If you had to pick 4-5 stocks that should be in a portfolio looking that far ahead, what would they be? I'm looking for strong management, good growth and consistent dividend growth in sectors/businesses that have very low probability of becoming obsolete. I understand that these are going to be big short term growth stocks, just a good foundation for a portfolio to be supplemented with some higher income and more speculative short term growth stocks.
Read Answer Asked by david on May 08, 2017
Q: Hello team, I am fully invested (stock/etf's leaning toward growth) but am getting somewhat concerned about where the market is at. It seems (in my layman's eyes) that valuations across the board are getting stretched relative to fundamentals. I can take some profit and am wondering about some "insurance" in sectors such as gold; either cdn stock or etf's. For context, this is a registered account, 5 to 7 year horizon, mid 3 figures. Any suggestions
Read Answer Asked by Harry on May 08, 2017
Q: Hello 5i,

I am a 20 year old university student. Through my CO-OP position I have built up just over 2000 dollars in savings that I am able to invest right now with an additional 500$ a month until September. Due to the fact that it is such a low amount of money I have been strongly considering putting all of it into one or two ETFs in order to avoid hefty fees. I am looking to grow my money as much as possible over a 3 – 5 year time period. I am new at this and therefore was wondering if you guys had any recommendation as to what I should do and which type of ETF I should put my money into.

Thank you so much for your help and have a great day.
Read Answer Asked by Patrick on May 08, 2017
Q: I have sold 40% of my shopify position to take some profit and am now sitting with 6% cash in my non registered investment account. What options might be available to me to park the cash until I see some exceptional buying opportunities. Second question is that I am seeing several investment articles recommend a larger cash position as there may be a correction given very high valuations that appear to have too much "hype or anticipation" factored in. What percentage would you recommend I maintain in my investment account. I am sitting at approximately 6% in my non registered account and 10 % in my RRSP. Thank you for the great service.
Deborah
Read Answer Asked by Deborah on May 08, 2017
Q: I tried to search the site in the blog section for information on the 5% suggestion for individual stocks. No actual search feature for individual articles. so could I get a reason for the purpose of the suggestion. How it should work ie if you have 7% do go back to 5 or let it ride and wait what would the top percentage when to trim. I have TD up 0ver 200% at 12% of portfolio but it is a good dividen payer and stable stock??
Read Answer Asked by Ross on May 08, 2017
Q: Hi.

Im borrowing funds for investing purposes.Since this is my first time doing this, I want to ask your advice if I use in non registered acct or my TFSA.I know I can get a tax credit for interest payment of the loan but with TFsa everything is tax free except theres no tax credit for my loan.Jist dont exactly known the calculafion.Im in 40% marginal tax bracket.

Appreciate your help. Thanks.
Read Answer Asked by sunday on May 08, 2017
Q: Good afternoon 5i. I am currently sitting with 25% cash on the side lines. I know that's much too high. I have avoided gold/silver sector as well as oil sector(I do have enb, trp, fts)I've also avoided consumer goods sector. I'm light in industrials (dow & cbi) and property sectors (tcn). All other sectors are represented fully and equally ie health/financials/tech. I have a 65/35% split between US/CDN market respectively. With the stock market correction today and yesterday would it be a good buying opportunity and what sectors should I focus on going forward and if you can offer some stock suggestions in each sector. Much appreciated.

Robert

Read Answer Asked by Robert on May 05, 2017