Investment Q&A

Q: Hello
My interest was in your recomendation of Pimco Monthly Income Fund. When reviewing this it appears the positive returns were made on the exchange rates alone. The US denominated fund shows negative returns. Am I assessing this correctly?
Thanks for the great service.
Peter

Q: Because the markets seem to be moving in a different direction, I am concerned about sector allocation. As the major portion of our income comes from our investments I would appreciate it if you could provide the percentage that should be taken in each sector. Please use a balanced equity model. Thanks for your help

Q: I've recently taken pretty big hits in d box and nyx gaming. It's time for me to get away from the small caps and move on to something with stable growth and actual profits. I don't mind fluctuations in share price or the market in general but I no longer have the stomache for the wild swings. Any suggestions?

Q: Team 5I
Your independent service is very much appreciated.

Previous Question: from other member on Oct 3 2016
How would your adjust position from Oct 3 2016 have in view of projected present US situation.
Re: dividend aristocrats vs dividend growth

Q: Good Morning
I am rebalancing the 40% Fixed Income portion of my portfolio. I currently have 30% Preferred, 8% CVD, 33% Renaissance Global Bond. The remaining is currently in cash.
I am considering adding Pimco Monthly Income for the remaining 30%. Pimco is rated somewhat higher than Renaissance and is similar with a Global component. What would you suggest for a rebalance, an allocation to some Bond ETFs etc.
The Equity side is diversified and makes up the other 60%.

Thanks to all

Q: Hi Team
My son turned 18 and I opened up a TFSA for him.He only has $1000.00 and a cost of $10.00 per stock or etf.Any help would be appreciated for long term goals 5 to 10 years
Thank You

Q: Freehold and Pembina are my 2 largest energy sector holdings and energy is 23% of my portfolio. FRU at 6.7% and PPL at 7.9%. Surge and Whitecap are the 2 smallest holdings. SGY at 1.8% and WCP at 1.0%. Need to reduce my energy sector. Should I reduce my holdings in FRU and PPL and keep SGY and WCP or should I just sell SGY and WCP and reduce either FRU or PPL.
Appreciate your assisstance.

Wayne

Q: Good morning,
Looking for your insights into the latest iteration of preferred shares issuances- fixed /resets with minimum floors. In the past number of years the broad market for various types of preferred shares have been negatively impacted by shocks( the perpetual market in 2013 "Taper Tantrum" / the most recent declines in fixed /resets with rates lower for longer) which for the most part, were wholly unforeseen. In terms of the newest preferred type, could you please offer your analysis on what factors could create the same problems( ie downside) for this share structure.

With thanks,
Brad

Q: Would any one of these companies be a good longer term investment? Your assessment is appreciated, as always!

Q: Can you give me three hedge fund names you would consider strong investments for next 5-10 years .i am retiring in 10 years and have most of my money in a variety of hedge funds and wondering what your guys opinion would be good picks for a tfsa,rsp, and a non registered account individually.

Q: Gentlemen I was advised to keep all the Canadian stocks that pay a $US dividend in $US accounts.

Can you please provide me with a list of all Canadian stocks that pay their dividend in $US in the 5i portfolio and coverage equities.

Thanks very much

Sheldon

Q: Hi there,

is there any way to know the target price for above companies you have recommended.

is there any source that would provide the target price for these companies or any other companies you cover.

also, what's the usual timing of your stock recommendations.

Thank you for your service.

Q: Hello,
In your response to a question about tax loss selling you mentioned that you've noticed some strange trading in some stocks this week. Just wondering if you see any good long-term companies that have been "kicked to the curb" recently due to tax loss selling. Air Boss seems to be one that is consistently making new lows in what seems like a daily basis and Black Diamond Group has plummeted since reporting disappointing results a few weeks ago (you have a B- rating on BDI as of Jan 2015). Any names fit the bill as tax loss victims?
Many thanks,
Kent

Q: Hello 5i Team,
The markets keep going up. When do you think tax loss selling will begin?
Thank you for your insights,
Pamela

Q: This is more of a portfolio management or investor psychology question. I am trying to determine when I should sell a stock. I am currently up 71% and have exited half my position already. The stock has continued to climb almost in a straight line since selling. I have crystalized exactly half my gains with the other half being unrealized. I don’t want to be a victim of just selling a stock because its up. I also don’t want to possibly give up the unrealized gains since its a smaller company. What's your thoughts?

Q: Thank you for your very quick answer to my inquiry of todays date - 11/16/16. However, relevant to your suggestions, we also own RY, SLF, BCE & PBH in other cash accounts. Still looking for other suggestions. Thank you.

Q: Being a retired accountant I can't help but feeling compelled to add my two cents on the question raised on goodwill.

Goodwill is simply the difference between the purchase price and the net book value of a company acquired. Say, if Co. A buys Co. B for $12 million and Co. B has a net book value ("NBV") of $10 million, then Co. A will report a goodwill of $2 million in its books. It's that simple.

You can call it an accounting plug if you like and that's not far from what it actually is. As to whether goodwill is good or bad, that really depends on each acquisition.

Using the same example, the $2 million goodwill is considered "good" if Co. B's actual assets are worth more than the $12 million paid for by Co. A. However, if the same assets of Co. B are actually worth less than the $10 million NBV, then that $2 million goodwill is really not an asset. That is the reason why so many acquirer companies have goodwill write-offs a few year after initial acquisition - when the true value of the company they acquired becomes crystalized. Hope that helps.

Q: Hello 5I,

I see a lot of questions concerning ETF. Would you consider doing portfolios of ETF along the same same lines of your income and Growth Portfolio?

Paul

Q: We are retired & reasonably comfortable. I have cleaned out several non-performing stocks in a RIF & now hold a full position in the following: FTS, AQN, EIF, KXS, ENG, & IPL.
With surplus cash of approx. $200K, I would appreciate your recommendation to round out this grouping. Thank you.

Q: Hi Peter: I am 81 years. Am considering buying Fidelity Tax-smart withdrawal program. This fund invests 70% S&P/Capped 60 Index and 30% S&P 500 Index. If you can recommend the fund would a 50% to 75% investment of my funds be reasonable? Should I buy on my TD trading account or buy direct from a Fidelity rep? Would I receive the same net income either way? Thanking you for your valuable opinion. Ron Noble