Investment Q&A

Q: Dear 5i team.
I'm sure there is an answer to this in the archives, just not sure how to search. Maybe with AI, you folks can give us the option of searching like a google search? IE with a sentence vs needing to know ticker? (May put some of the folks out of work, so understand if this is not a high priority. :)

Can you tell me which US or Global ETF is focussed on building arms and munitions for military purpose? I'd like to take the aviation part out if possible, as I'd prefer to stay far away from Boeing for the time being.

Many thanks for your help.

Q: Aaron Rodgers (star Green Bay Packer) called out Nancy Pelosi for buying millions of NVDA in curious stock trades before a government announcement as Aaron's friend used his X account to become more informed on the Pelosi trades. I imagine there is quite a bit of this going on and I would ask if that benefits or hinders the ordinary trader like us who rely a lot on your knowledge.

Q: Hello 5i
I cannot find Ross's question from Jan 24 on sector allocation. In fact, I believe that sector allocation questions and answers are filtered out of 5i data banks. Questions from users on this topic may appear in the morning and then magically removed by afternoon. Is this a systematic removal on your part?
Please share Ross's question and your answer with me. I am interested in these questions and would rather see them than not.
Tia!

Q: My question relates to tax loss selling.
I sold two stocks prior to year end for a capital loss. However, the dividend payout after the sale date were automatically reinvested into the same two stocks. I called the discount broker a couple of days after this and had them sell the shares.
Do the reinvestment shares nullify the ability to claim the tax loss for the 2023 tax year?

Thanks for your assistance in advance.

Q: I was interested in buying CHAT however I never heard about the ETF company. How would you rank https://www.roundhillinvestments.com)

Is there any similar ETF like Chat?

Thanks for the great service your team has provided.

Q: This is NOT a question but a comment!

I of course benefit from the words of wisdom of Peter and his team. Peter with his extensive experience and having worked with some giants in this field like Eric Sprott has so much to share.
However I also benefit from fellow subscribers' questions/comments. Today (15-01-2024) Dave mentioned about Don Coxe in his question about LB.TO. It brought fond memories of Don Coxe whose columns on FP (previous iteration) I used enjoy. Arguably one of the most elegant financial writers whose USD:EURO ratio was very popular once. I presume he has retired. Please do share the link if Don Coxe is still writing columns anywhere!

Q: Hello Peter,
I will greatly appreciate your thoughts on my thinking process as I construct my portfolio for this year. I would like to know how closely your thinking aligns with mine and what would you do differently.
I am a retired senior, not risk averse yet mindful of the necessity to curb excessive enthusiasm. I like to think I keep the risk to reward tilted towards the latter.
My thinking goes like this. I expect the Canadian economy to go through a mild recession or at best ride the US economy to <= 1% growth. Hence, I want to allocate 30% Canada and 70% US (including marginal international through ETFs).
I feel that since interest rates have peaked, the stock market should return higher than historical average this year. I think the allocation should be 20% income, 25% balanced, 30%growth,10% investor suite and 10-15% trading opportunities. I think that automated AI/technical based trading software will have a larger presence, making the market a little more volatile and provide with trading opportunities.
I also think that more interest rate cuts in Canada than the US, the income portfolio should be all Canadian. High yielding stocks should provide capital appreciation as well in this environment.
I am not considering Shopify and CSU as part of a portfolio. I already own them and they are qa significant part of my assets. Any adjustment will have significant tax consequences. If required I will take decisions independent of the portfolio.
I look forward eagerly to your feedback.
Regards
Rajiv

Q: Under Investment Q & A, as an example, Target price history - PYPL, current high target price $118.00, the deviation (line with dots) recent 13.9 -- can you explain what this indicates.

I am a long term member and I am noticing the below more than in the past:

A lot of questions have "take as many credits as needed". For instance, the longer the question the more credits are required or the more research done the more credits required, or the more companies asked about the more credits required? Please advise.

Thank you
Appreciate the years of good service.

Q: A question regarding interest rates and the effect it has on income stocks such as those in the Income Port.

Much is currently being hypothesized about interest rates going forward. Not about higher or lower, but the amount of cuts and how long it will take to get to a neutral rate.

That being said, if rates were to drop by 2% over the next year, and all else being equal, maening no black swan events or a deep recession, to name a couple, what correlation would you assign to stocks which have been beaten up during the 4.75% increase to the BOC rate? A 2% cut in rates is a 40% reduction, in the rate.

I assume that with falling interest rates, money would flow back from savings accounts, GIC's and the like. Stocks like BCE, T, ENB and the banks and utilities or any that are currently yielding >4% should see some attention, no?

Thoughts?

Thanks,

Kelly

Q: Hi Peter, Can i transfer stocks from RESP to kids TFSA account without selling and rebuying?

Q: Hello and Happy New Year,

Can you please provide a simple ETF portfolio for the average middle-class Canadian, with no private pension, and who has some time to watch the markets but not a lot, and who just wants to commit to a dollar-cost averaging investing plan for the next 20 years?

Thanks,
Robert

Q: if you had a considerable amount of cash to invest now, would you invest it all or would you take a staggered approach considering the run up we have just had? if staggered, over how many months would you invest it?
thanks and happy new year

Q: Happy new year: today there was a question from a person that wanted to move “in kind” from a rif to a tfsa. What is the advantage to this move? My first thought is that a full amount of taxes would be held back when closing the rif?
Thanks

Q: As the year starts it is time for retrospective. Could you compare and explain the performance difference between the three 5i's portfolios since inception? Should we expect the ranking performance to be in order growth/balance/income? Time period may be too short. Please give so e clues that would help me understand.

Thank you to the wonderful team.

Q: do you have any guidance on rules to follow for tax efficiency? I came across a chart from one of the magazines (either money saver or ETF update) a while ago that was very handy but I can't seem to locate it.
thanks

Q: Hi
I know that this question is almost impossible to answer and it is anyone's guess but what is the end game for this mounting debt in the US? 34 trillion? Perhaps 10 trillion of that is domestic? Still a stagering number. GDP is 26.24 Trillion with that volume it sounds manageable but they and other goverments dither about, eventually kicking the can down the road. At what point does this come to a head in your opinion? Perhaps a year or an event that you see as an epoch?
Thank you
J

Q: I have a number of quality companies/stocks in my non registered cash account which are below my initial purchase price. Am I correct that transferring into my TFSA will trigger the capital loss? If so, any down side I should be contemplating? I have sufficient room within the TSFA.

Q: This is a general market question. I hold too many companies in my equity accounts and would like to reduce the number. On the other hand, my overall portfolio is up more than 11% over he past 3 months. I am overweight financials but I see them as benefitting from potential rate drop. Most of my holdings are growth oriented. I do hold approximately 15% fixed income, short and longer term bonds.

What would be your overall approach given potential rate drop and anticipated slow economic growth? 90% of my holdings are for long term. 10% are trades.

Take as many credits as required.

Thanks for all your help.

Mike

Q: Good Morning 5i Team,

1. Is the capital gains tax the same on CDN and US stocks in a cash account?
2. Does one pay more tax selling US stocks with no dividends in an RSP or cash account?
3. Are the dividends from preferred shares eligible for a tax credit? Or does it depend on the offer?

Delete question credits as required.

Thank you and keep up the great work.

Q: Cheers to 5i for the New Year!

Bloomberg December 29, 2023:

"Dollar bears - A weaker dollar is the expectation for 2024 of most analysts surveyed by Bloomberg amid forecasts that the Fed will lead the way among rich peers in cutting interest rates and that a soft landing in the US's economy will encourage investors to seek risk away from its shores. But strategists at JPMorgan Chase and HSBC are among those who reckon the greenback could still strengthen because the rest of the world will end up needing to reduce rates more to aid their economies. "

https://www.bloomberg.com/news/articles/2023-12-14/usd-will-surprise-again-with-strength-as-global-economic-slowdown-looms

Q For 5i: Thoughts on weak $USD thesis relative to $CAD in the short, intermediate, and long term? Do you believe the US FED will cut further or faster than BOC? How does the 5i team see CAD/USD going forward.

i.e. if owning both USD and CDR versions of the same equity, where could one consolidate into, etc.