Investment Q&A

Q: Topic: interest rates and income stocks, particularly utilities in a "stagflation" scenario.

I understand your message regarding higher interest rates reducing the appeal of income stocks in a growing economy.

But what about stagflation? If interest rates spike, but the economy stagnates (some us remember the 70's) .... would stocks like the utilities still likely "stagnate" or drop as well?

Would anything do well in a stagflation scenario?

Thanks for any information or guidance you can provide.

Q: Hi Fellow Investors!
For those that haven't read the recent 5i blog on averaging down yet I would like to recommend reading it. It is an important topic and well written.
I would just add that averaging down beyond a normal portfolio weighting can put a big dent in one's longterm returns if things go wrong. In my experience you need a very high degree of conviction to average down and by definition such opportunities will only present themselves very rarely. Most investors cpuld do well to avoid the practice entirely, IMHO.
Cheers
John

Q: Hello 5i,
Which do your prefer at this point in time, ko or bud
Thanks,

Q: What REITs would you prefer to invest at this time?

Q: Hi Peter and Team,

In our portfolios (TFSAs, RRSP, RRIF, and Margin, we are moderately overweight in ATD.B, CCL.B, and KBL; (about one and a half positions in each) and are somewhat more overweight in CSU (slightly over two positions).

In the case of KBL, it has come down over 15% over the last year, so would it be prudent to reduce its weighting (we're still up)?

Should we keep the slightly overweight positions in ATD.B and CCL.B?

There was a recent article in the Globe pertaining to CSU by Andrew Willis "A Canadian firm's strategy for deals finds new roadblocks". Possibly the premise of this article isn't valid, but due to having a bit more than two positions with CSU, would it be wise to take some money off the table here?

It's so hard to sell shares in good companies!

Thanks in advance for your valued recommendations.

Q: I have 21 holdings in my RRSP. All dividend payers and am interested in diversity,safety and income. I have 5% USA and 6% CDN bonds the balance are CDN equities. With the unclear future going forward what do you think my weightings should be for diversity and can you suggest some emerging market holdings.

Q: Would you be able to provide the rates of return of the ten sectors of the TSX for 2016 please? Do you expect similar returns by sector in 2017?

Q: I am fine with my weighting in the Energy Sector and rebalance at least bi-monthly.

Within the energy sector I have the following weighting in dollars:
WCP 30K
PKI 105K
TOU 72K
VET 11K
PPY 9.2K
PEY 10K

Since I am losing the most from initial buying price in TOU as I have had it for some time, and it provides no dividend.. and seems not to be anyone's favourite, would you suggest selling any of the above such as TOU and buying more of the other?

Q: Hi 5i team, my IA has me in FID269 in my LIRA and RRSP, do you think that this is a good fund to hold in either of these funds? I won't be accessing either for many years so I would like to take advantage of both these registered accounts during that time. Can you suggest an alternate?
Thanks

Q: I thought submitted this question yesterday, but didn't see response so resubmit again

Someone introduced us Principal protected notes (PPNs), which offer 100% principal protection and attractive return on investment. PPNs is new to us so we wonder comparing with bonds from risk-reward perspective, which one is prefered income investment vehicle.

Thanks,

Q: Hi 5i,

Just wanted to congratulate Michael Southern on obtaining the CFA charter. Well done - 5i is now a force to be reckoned with! Keep up the great work.

Elliott

Q: As being 75 plus I am looking at safety, growth, income. would you recommend efn--tcn or other I also need 2 Tech. and 2 Industrial stocks or etf's I only have WSP and Xit which I need to replace. Many thanks for your advice.

Q: Re form 1135. Are US ETF holdings exempt when held in RRIF and TFSA accounts when calculating amounts?

Q: Had a very satisfactory 2016 with a combined increase in both cash & RIF accounts of 9.3%. However, TFSA has been a disaster. Initially in 2009 bought CPH & stupidly watched it run up & then way down before I dumped it for a large loss. Bought AD (second time) at around 23 - watched it climb to 31 & then crash. Sold it at $18+. I know - it's now climbing back nicely but I want to start a-fresh. Don't need the income - just lots of growth. Looking at SHOP & other similar opportunistic potentials. Your suggestions please. Thank you

Q: Just wondering if you could repost the link to mr Hodson' s latest conference talk on how to choose a stock.

Thx

KR

Q: Good morning. My son has $17K to invest in his rrsp. Can you suggest 5 firms or etf's for him, for a 24 to 36 month hold. Thank you.
David

Q: In my son's RESP we hold AW.UN , ATD.B , BEP.UN , BNS , L , and PBH and all have done well ( thank you 5i ) . We were thinking of cashing out Alimentation to pay this year's tuition fees , but we are not sure if that would be the best move .
Which baby should we sacrifice ?

Q: What would your Top 3 dividend companies with growth be. Keep in mind I plan to initiate a full position in each company. I have a diverse portfolio so sectors do not matter. I also have a moderate appetite for risk.

Q: Hi 5i, I’m trying to understand the price setting dynamics when expressions of interest are sought for an IPO and a price range is indicated instead of a fixed price. E.g. the current Freshii offering indicates a price in the range of $8.50-10.00. What determines the actual price? Why wouldn’t the company and the bankers just pick the top end every time if that is in their best interest? Thanks!

Q: Just curious. There is an alzheimer drug that has been found to repair and rebuild teeth is called "Tideglusib" and it is mfg by a pharma co. called "Zeltia Group" but, they are on the Spanish Madrid exchange symbol "ZEL" with a quote of 4.045 ?.
The question is; how does one buy and sell on these smaller exchanges, how does the currency aspects work and what are the tax implications etc?
Thank you