Investment Q&A

Q: Would you have some suggestions for reading material on covered calls? I wasn't looking for something too complicated. But I am interested in information that would cover (a) stocks and stock markets best suited for covered calls (b) logistics of how to choose the best case of option cost and duration for a particular stock ( c) option timing in dividend paying stocks and (d) what is a realistic rate of return. Thanks!

Q: There was an article from the Globe describing an investment stratigy to look for areas where capital is scarce. I havn't seen this before, at least described like this, I guess basically the opposite of momentum investing. Or maybe this is what value investors look for. In any case they did not back the article up with any evidence that the strategy has been successful over the long term.

So: are you familiar with this conceptype and do you think there is merit to it? I guess it could help being early to a sector that will soon turn around, but it seems to me that investor capital (aside from a lot of retail) is pretty smart money and may be avoiding areas for a good fundamental reason that could last many years.

"Returns are best where capital is scarce” is one of my favourite bits of investing advice. The idea was popularized by Richard Bernstein, former chief quantitative strategist at Merrill Lynch and founder of RB Advisors."

Q: Good Morning
WealthBar is a Robo Adviser based out of Vancouver.
We will appreciate any information you may have about this company. Is it safe to invest through them?
Thank you

Q: Recently the media was awash with implied heavy concerns around the supposed losses the CDN. banks would be reporting this week and next. They said so while trying to impress an implied authority. The media even went so far as to create a reason.

I had to try and stop laughing once again at the business media in general, so as to be able to type this post, as it once again showed that it basically is a comedy show and of little value to investors. At least when it comes to predictions.

I often wonder if the media have to work and prove their metal at SNL 1st (Saturday Night Live).

So far all of the banks that have reported have provided growing if not all time high revenues, earning, profits....

Stan

Q: You may have answered this in the past, but: does the 5i team believe that individuals can beat the market? I'm assuming you must think so given your team is essentially in the stock picking business, but how does this align with most studies that suggest the ETF or couch potato approach?

Q: Hi Thank you for your wonderful service. Natural gas seems to be entering a period of seasonal strength. The commodity seems to be trading at secular lows. Would you advise buying the commodity in the form of an ETF? Could you recommend one? Or would you suggest an individual Natural Gas stock. Thanks again.

Q: what are your favourite growth stocks with the least down side potential ?

Q: Hi guys,

When analyzing companies with a high debt load model like infrastructure companies or utilities, what is the best metric to analyze the valuation? Should we use a multiple of EBITDA, rather than net income since net income will be heavily influenced be depreciation and interest expense?

Thanks,
Jason

Q: I am interested in farmland. Are there any REITS, etf's, or stocks in Canada? Does FPI:Z work for North American exposure?

Q: Gold and gold stocks have been dropping steadily over the last two to three weeks, with many down 10% to 20%. Can you tell us why? Is current or pending US policy a factor here.?

Is it time to sell these stocks before gold drops further? Or is this just a normal "zag" in the continuing upward zig-zag of gold prices? If so, should we hang on a little longer?

Any comments or suggestions will be most appreciated!

Thank you from a nervous "gold-bug"!

Q: I have a 6% weighting in technology ( Apple and DSG ). I would like to bring this up to 12%. Could you recommend 2 Canadian and 2 US stocks. Thanks.

Q: I received about $ 25,000 The proceeds from Innvest Reit I was getting a 7 percent yield Can you suggest one or two companies that have stable cash flows and yield anywhere close to what I was getting for Innvest

As an aside my portfolio is up 15 % YTD I owe most of the gains to 5i You can't get a better testimonial than that

Thanks so much

Paul

Q: Hi 5i team, I would like to get refereed to good websites in order to access market by price ( bid and ask depth) information on TSX listed stocks. I noticed they charge a fee for that service, but could you recommend one or two in particular?

Thanks

Q: I have a lump sum that I received from the sale of a rental property and I'm looking at deploying the capital in the stock market. My question is around portfolio construction or how to deploy a lump sum of money. Do you build half positions in the companies you like and look at adding to the positions on pullbacks or do you initiate full positions if the valuation is reasonable?

Finally, once the portfolio is largely complete, do you recommend only trimming and adding at month-end or once a month? It seems like this would avoid unnecessary trading fees and limit too much trading activity.

Thanks,
Jason

Q: Monitoring Dividend Stocks: I would appreciate your advice as to how investors can monitor and stay on top of bad news, particularly for smaller, riskier dividend stocks.

Example: I have a small position in GRC/Genville Strategic Royalty Corp. I missed the news of the poor results in May. The stock price dived down, and has stayed down. (As of today, the capital loss 49%.) The dividend was cut 27%. How can one avoid or limit losses in similar situations. Also, do you advocate selling a stock as soon as a dividend cut is announced, or anticipated?

Q: We keep reading about the incessant search for yield but I can't figure out who it is that is searching. The average investor couldn't live on yield alone even at some of the highest levels. Not to say that yield is not an important metric; it is, as 5i points out. But who then is doing all the "searching"?

Q: 17% of my portfolio is in REIT,s. Is this to high a weighting or should I reduce. I am holding REI.UN, CUF.UN and CRR.UN. Equal amounts. If I am to reduce, which one do you recommend I should sell?

Thanks in advance

Q: I have no fixed income in my portfolio. I'm 63 and have been retired five years. I'm still a fairly aggressive investor and need some appreciation from my holdings to fund my lifestyle. In this low-rate environment, I have little interest in bonds but would like your opinion on preferreds. The new issues seem to have addressed the reset problem. Is this true and can you provide some names with a nice return, reasonable safety and possibly trading below par. The last criteria is the least important.

Q: Hi Peter,

I am 43 years old and my portfolio closely tracks your balanced portfolio. I also have exposure to the us and international stock market. I am at a point that I have enough contribution and exposure to the stock market and I do not plan to contribute more. I also have real estate exposure by owning my own home in Toronto. Now, I am looking for new investment vehicles to invest my disposable income. I have 10 year time horizon. Any general suggestion? I am willing to consider alternative ideas ( e.g. willing to buy a property in the US). Thanks for the great service.

Q: Which type of account is it best to hold gold in? (both stock ETFs like XGD and bullion like CEF.A) TFSA, RRSP or Non-registered? Can you please rank in order of the three account types?