Investment Q&A

Q: I am hearing about AI trading system that does automated trading for you. Do you know any brokerage using the automated trading system and is it legal in Canada.

Thanks for your great service.

Q: if you sell a stock with a nice capital gain by mistake and correct your error by buying it back a few minutes latter with the intention to keep it long term ,is the capital gain taxable ?
My guess is yes
So why not sell all my gainers before the 25 th and buy them back few minutes latter ????
your insight please

Q: Are we Canadians fools? Rhetorical don’t answer that. My question is should we do what you do and not what you say. By that I mean should we invest 100% in the US market and forget about the Canadian stocks. It seems that we are 2%/year or so behind the US on a long term basis. We would easily make up the FX costs within one year. Currently you suggest 30% or so Cdn and I am not that low yet, but I do wonder if that target is too high.

A diehard Canadian who may also be a fool.

Q: Good morning,

BEP,UN is classified as energy in portfolio analytics, should it not be under utilities?

Thanks for the unique service you provide followed your suggestion on NVDA after 2 splits my cost base is 3.80$ only problem is the taxman with clawback at 91 000 already reached and at 107 000 combined rates plus clawback in quebec is 65 % ????
I put all the money, work, risks for one third of profit!!
I see no way around this do you have any suggestion or resources to address this.
I won't ventilate to much as my language would not be proper.
Thank you !

Q: Dear 5i
I have not seen so many down days for the TSX as i have lately . What's going on and why is the TSX so noticeably worse lately relative to the nasdaq and S&P 500 ?
Thanks
Bill

Q: I always hear that when company Buy Back their shares that would benefit the investors. I know that when they buy back their shares number of outstanding shares reduces. Is there any other Benefit.

Plus I have seen company buy back their shares so shares get reduce and then they split their shares in next 2 years so in other words they increase their shares indirectly. Is this normal.

One example currently that Royal Bank buying back their shares usually they buy back when they are cheap on valuation since they are not cheap on valuation are they planning to split their shares.

Thanks for the great service

Q: Dear 5i team.

I would like to look at a small investment in defence/war munitions sector companys or ETF. Can you suggest 3-5 names that cater to "War" efforts that can be considered a DIY ETF? As well, which ETF(s) would you consider for this exercise. Ideally one with the lowest BA %.
Finally, are these Co's trading at resonable valuations, or has this ship sailed, so to speak?

Many thanks for your help.

Q: Good afternoon, Please recommend your 3 favourite international equity ETFs (without US holdings) and your 3 favourite US market ETFs. I already own QQQ which represents approx. 10% of my RRSP (in US dollars). Further, what are your thoughts on investing in the US market in US dollars (converted using Norbert Gambit) vs. Cnd. dollars? Is there an approach which has generated better results? Thank you.

Q: I was looking for Metal ETF that holds only Metal.

We reccomend: COPX for copper and for uranium URNM or URA. On the gold side, there are direct spot exposure gold ETFs, some we like are GLD and GLDM. There are also gold stock ETFs for which we suggest GDX and GDXJ.

Thanks for the great service

Q: Can you please recommend your favourite metal ETF for URANIUM, COPPER and GOLD.

Thanks for the great service

Q: Just a simple question.

Do you know why the TSX and DOW both have a huge pop at 3:35pm yesterday - less than half an hour before closing? TSX jumped about 200 point, any news there? Thanks.

Q: Need to increase U.S. and Internation equity exposures in my RRSP. Current exposures are mainly from VBAL (25% weight of RRSP) and a small position in XLU, ZWU and XGD. I am considering adding SPY for U.S. equities. What do you think about this option, and what would be a good entry point? Also, what would be a good addition to increase international equity (ETF or stocks)? Knowing that you cannot provide personal answers I appreciate very much your comments. Much Thanks

Q: Hello,
Can you please recommend a few US blue chip large cap with reasonable valuation, decent dividend, some growth, buy and forget type of stock. I am reviewing my portfolio and looking for some ideas. No need to comment on why you like the names. Thank you,

Q: Knowing that portfolio allocations need to be very personal, but would 30% Canada, 45% US, and 25% international work as a general guideline for 60% equity portion of a new RRIF account?
Would you change the 40% fixed portion consisting of 20% 1-year GICs, and the remaining 20% of XHY, CVD, CPD, Bonds mutual fund (currently at loss)?
Thank you for such a great service.

Q: I am in my 80’s and have a cumulative capital gain over $600,000 in about 30 companies split evenly between U.S.andCanada.
To avoid paying the higher inclusion rate should I sell some of these stocks now and purchase them back at a later date bearing in mind stock and currency rates fluctuate.

Q: Hi Everyone at 5I!
I am trying to figure out the step by step process of Norbert's Gambit. I have a TD WebBroker account both CAD and USD. I want to move CAD into USD. How do I proceed? It is probably very simple and I can't see the forest because of the trees.
Cheers,

Tamara

Q: Hi Peter, It will be nice to get your detail opinion on today upcoming budget from investors point of view via a blog. Just a suggestion.

Q: Good morning,

This weekend I came across this ETF that invests in private companies with the largest holdings being Space X. The 52 week action on tis is insane and I believe it is only a few weeks old in terms of being traded. What is your opinion of this ETF their strategy if any and the trade action in such a short time. Are there other more established funds out there that do the same thing? Would you buy something like this with some fun money? Sybol DXYZ

https://destiny.xyz/tech100

Q: Hi Peter et al:

This is a big picture question based on the recent article on optionson5i Research and also based on Peter's expertise on Options trading. After all your i2i fund is based on this strategy, if I am not mistaken, right?

How does one screen for stocks , selling cash secured puts and Covered calls? Any particular favorite screeners that we can use who don't have fancy Bloomberg terminals? Your excellent article in 2015 talked about Covered calls (where is the promised follow up article?! :)) YouTube is filled with clips that promote either courses or their black box products. I want to develop a methodology that I can use in a systematic manner.

IF I want to protect myself for the expected and very possible downturn in the markets, how does one employ this technique?

Finally what are your stocks selection for such an approach at this time? ( Both for Selling cash secured puts and Covered call)

Feel free to deduct as many credits as you deem fit.

Many thanks.

Q: According to your weekly review received Saturday the Canadian dollar was 73.96 and the TSX ended the week up 1.6%
However according to Saturday’s Globe and Mail the Canadian dollar was 73.57 and the TSX closed at 21,984 or up .3% for the week.
In the future it may be better to postpone your weekly market view until the next market day as obviously there must have been a drop in markets during the closing hours.