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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: Hi I've done well this year: up almost 17% year to date. Thanks to mostly your BE stocks. I'm thinking maybe I should hedge my portfolio somewhat to protect the gains. What do you think of the us etf HDGE. It doesn't seem to have the difficulties of other bear etfs with their daily decay rate.
Or would you just ride the portfolio through the inevitable cycles of downs and ups?
Read Answer Asked by Steven on September 22, 2016
Q: I have learned a lot and benefited greatly from 5i advice, and take particular benefit from your diversified portfolio approach. Would you say it is fair to identify any market analyst, including the 5i group, as having a particular specialization being an area of strength and certain market segments being areas of weakness or minimal depth? For example, analysts who are good at identifying software companies but less aware of details required to be successful in healthcare field. If you agree, which areas would you claim are 5i's areas of strength and which are the segments of less depth of knowledge.
In view of constructing a diversified portfolio, I am looking to draw information from a variety of sources. Your comments would help guide the relative importance to assign to difference sources.
Clearly track record is a primary guide to use, but I would also take your self-assessment as very valuable. I don't mean to be hard on you or anyone for identifying strengths vs weaknesses.
Thank you kindly,
Gary

Read Answer Asked by Gary on September 21, 2016
Q: I have rate reset preferred shares (bought at $25 / share) which are presently 25% in value underwater because of the Banks of Canada’s unexpected prime interest rate decrease. At the time of purchase their interest rate was 4 to 4.5% & they will be subject to a rate increase in 2019 & 2020. I your opinion what is the chance of their value returning to near $25 in the next 3 years? I am wondering if I should sell the preferred now or hope that their value will appreciate sometime before their rate reset date . Thanks … Cal
Read Answer Asked by cal on September 21, 2016
Q: I was listening to Charles Nenner (Research) on BNN, who you are probably familiar with, although it was a first time for me. Unfortunately while he was talking tops and bottoms I am not really sure I understood his future predictions. It did not help that the BNN reporter was really unable to bring out the issues he was talking about. It seems to me that he was saying TSX,S&P etc would undergo a down cycle in the coming quarter but when that was over we could expect a rise going thru to the end of of 2017. Are you familiar Charles Nenner cyclical philosophy and what can you tell me about it and do you give it credibility. Thank you.
Read Answer Asked by Maureen on September 21, 2016
Q: Hello Peter & Co.
In my TFSA, I hold a mini portfolio consisting of BAM.A (fin), DH (fin tech), DHX (cons discr), KXS (tech), MSI (ind/bus serv), NFI (indust) and PLI (health) in more or less equal weights.
I am frustrated with DH (significantly down) and wish to replace it with something else; could you make 2 or 3 suggestions? I'll select one that I do not hold in my RRIF.
Thanks,
Antoine
Read Answer Asked by Antoine on September 21, 2016
Q: Currently gold is about 2% of my holdings. Half is TMAC, the rest split between Osisko and Roxgold. The miners are both in advanced pre-production.

I am looking to go overweight gold for the next 4-5 months. Possibly as high as 12-15%. I think seasonality may get a boost from India, whose markets and monsoon have been very good this year. And I want TTT (Trump Temper Tantrum)insurance in place well before Nov 8.

Can you put fwd a short list of producers and royalties that you think would do best in a rising price environment in that time frame. (Please note, ROX's asset is in Burkina Faso, where most of SMF's are.)

Thank You for this and all your other fine work,

Tim
Read Answer Asked by Tim on September 20, 2016
Q: I submitted this question last Thursday. But I think there maybe system glitches that some questions get lost. This is a resubmitt:

Your balance portfolio has an impressive returns. Mine is way behind. So I searched your QA database, without success, to see if previous questions were submitted regarding a general strategy on how to migrate my stock/mutual funds/etfs holdings to duplicate your balanced portfolio for getting less hands on investing. I hold perhaps 80 stocks and I share perhaps 15 securities with your balanced portfolio and these are obviously to keep within the constraints of asset allocation. I have about 25% holdings in US companies. Your answer, I am sure, would be of great benefit to those members who are like me, are tired of chasing ellusive returns and wish a steady hands-off approach to investing.

So my questions are:

- Is it possible to give a guide line on how to migrate a portfolio to duplicate one of your portfolios? Do you think by adding few of your covered stocks with A/B ratings be a positive or a drage on performance?

-In searching your data base for questions like this one, using a key word like strategy, would I be able to find answer to such a question?
- Allocating assets between Canada and US in general terms, to enhance returns, without consideration to personal circumstances, what percentage allocation should one invest outside Canada?

Your program has helped me tremendously in focusing my portfolio after many years of haphazard approach to investing. So your help is much appreciated by the many members of this community,

Thanks a lot.
Read Answer Asked by Saad on September 19, 2016
Q: I am hoping you can further educate me on the workings of the market. Specifically, what exactly is a roll-up company and how does is it different from a company that regularly does acquisitions?

The term "roll-up" seems to be used nowadays by analysts and other media experts as a negative term, perhaps due to the failures of Valiant, Constellation among others. But ATD.B is lauded due to its growth via acquisition. So, is a roll-up strategy inherently negative and if so, how do you spot a roll-up vs a smart acquisitor?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on September 19, 2016
Q: Hi. I am interested in putting away 10% of the fixed income in High Yield Bonds. Below is a list of high yield bond offerings.

http://campaigns.questrade.com/Libraries/bonds/Questrade_Bonds_List.sflb.ashx

Page 10 of this link has a list of high yield bonds, of which I've listed a few that seem promising:

1) AIM 4.01% expired 2019

2) XRS 4.86% expired 2021

3) PKI 4.17% expired 2021

4) PKI 4.97% expired 2024

5) QBR.B 5.22% expired 2023

Are they ok or do you have any other suggestions? Please choose two for me. THANK YOU IN ADVANCE
Read Answer Asked by Esther on September 19, 2016
Q: Hi 5i team,

About 18 months ago, I invested 20K in my girlfriend’s newly opened TFSA. I had asked a question where I was looking for stocks (medium to low risk) with dividends above 3% and still have potential for some growth for a 2-5 year hold. These were and still are her only investments.
Following your recommendations I bought equal weights of CDZ, WSP, BNS, AD and WIN. I have since sold WIN for ATD.B

If I were to start over today, what stocks would you suggest? Would you recommend that I adjust the current holdings to match any new suggestions? Or would you just stay the course? Thanks
Read Answer Asked by Marco on September 19, 2016
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