Investment Q&A

Q: Could you recommend 2-3 fixed income ideas for both in a registered and non-registered situation.

Q: Hi,
I'm looking for your sage opinion on how to deploy cash at this point in time. I have enough cash for 5 years of expenses and I'm in my 2nd year of retirement. The rest of my nest egg is in equities, real estate and bullion.

I have been thinking of just putting this cash into a five year GIC ladder and call it a day. But.... rates are already falling on GICs as we speak, likely in anticipation of further Bank of Canada and soon US Fed cuts.

Have you other options for me to consider for how to deploy this cash to 1) ensure a high probability of being able to meet expenses without selling equities in the event of a market downturn, while 2) ensuring a reasonably decent return from this cash over such a long period.

Specifically, does it make sense to accept around 4% as a guaranteed average rate or is there a solid case to make for dividend payers instead of GICs. Open to other and all suggestions.

Thanks for your invaluable service.
Michael

Q: Please provide you input on the pros and cons on the difference between ETF bonds, such as RQQ, with maturity dates, vs ETF bonds, such as VAB and/or XLB, with no maturity dates. Instead of investing in GICs, which you are locked in for a period, RQQ can be bought and sold when the market opens, making it seems to be almost as good as GIC.
Thank you

Q: Good afternoon, I am realigning my RRSP account using geographic and asset type recommendations. The asset allocator recommends that 15% of my portfolio be in fixed income. Can you please recommend a few fixed-income ETFs? Also, should fixed-income holdings be mostly domestic or include international as well? Lastly, would you consider CASH.CA part of the fixed-income component of a portfolio or simply a place to keep cash until it is directed into another asset? Thank you in advance.

Q: With a long term view, what proportion would you allocate to each of the above to make a balanced portfolio?

Thank you

Q: I’m looking to diversify the fixed income portion of my portfolio. I don’t have any bonds/treasuries so was looking at TLT and XLB. Can I get your thoughts on these and others you could recommend?

Q: I have these bond funds: PGF510, CVC, ZAG, XLB, along with mostly GIC's in my fixed income side of portfolio. Do these Bond funds pay interest the same as the GIC's or do they pay Dividends so I would get the Dividend Tax credit? All are in my margin account. Would any of these be worth adding to now that they have gone up somewhat? Thanks so much!

Q: For a long term investor with a focus on dividend paying companies or fund/ETF's are fixed income types appropriate for a T.F.S.A.? If so can you suggest 2-3 fixed income products?

Thank you- Jim

Q: Can you please recommend 3 bond ETFs that will provide in one year 10% yield including both dividends and capital appreciation?

Q: The fixed income portion of my portfolio is fairly low. Would now be a good time switch from equities into fixed income in bonds, or has the horse left the barn? What would be, in your opinion, some suggestions for fixed income?
Much appreciated.

Q: Hello,

I need to increase the fixed income component of my portfolio. XBB and CBO make up 12% of my portfolio. Please suggest a few more CDN fixed income ETF's I could invest in. I am retired so a more conservative approach is what I am looking for.

Thanks for all your help.

Q: Good morning team, sorry, I should have been more specific in my last question. I’d like to purchase XLB and HDIV in either my tfsa and/or cash account. The goal is to produce income. Which account(s) are best suited for these ETFs? Too add to that, how do you feel about HDIV with about a 10% weighting?

Q: Good day team, I’m looking to purchase both XLB and HDIV. Which accounts would be best suited for these ETFs?

Q: I was watching an interview with David Rosenberg and Ed Devland. They were stating that the Canadian interest rates are going to have to be cut several times due to economic conditions. Can you recommend investment strategies to benefit from this . For example bonds going up in value because of the inverse relationship of interest rates and bond values. What bond etf's ect. Can you give US recommendations also, as it sounds like the Us will be later than Canada.

Thanks

Q: Bloomberg article today summarized:

Forget the stock market or private credit. Fixed income will outstrip other asset classes after “a generational reset higher in bond yields,” according to Pacific Investment Management. “Active fixed income is positioned to perform well if there are no recessions over our secular horizon and to perform even better if there are,” Pimco’s Richard Clarida, Andrew Balls and Daniel Ivascyn wrote in an outlook released Tuesday. As prices climb and inflation recedes, they expect bonds will be even more attractive than cash.

Can you offer some guidance/thoughts on this? I’m a growth investor primarily in stocks, and not familiar with bonds.

Can we benefit from some torque? What would be your top ETF plays in this?

Q: Bond ETF's like XLB have performed poorly in the face of peak interest rates and pending Fed rate cuts. Could you offer some insight as to why there has been recent weak demand for US treasuries, whether you see that trend continuing in the near term and at what point bonds may become a rewarding investment?

Q: I hold XLB in my RRSP. What do you think of swapping the XLB for BEP.UN?

Can you address the answer in various interest rate directions please?

( Between BIP.UN in the RRSP and the BN and BAM outside, I already have 10% exposure to the group. Doing the trade would have me bumping 15%. )

Thank You

Q: Feels like the right time to step into long term bonds. Do you agree and what would be your maximum allocation in an income portfolio? Thanks as always.

Q: I have these ETF's in my portfolio, although they are a small percentage. I am wanting to do a clean up of most of my partial holdings in individual stocks and purchase more ETF's. I was going to add VIG as well. Could any of these ETF's be replaced with better ones or not bother with them, and what others do you suggest to compliment them for an income investor who wants to see a little growth as well in a well diverse portfolio? Thanks.

Q: If interest rates drop would short term bonds be better than longer term ,which ever is better do you have any suggestions on bonds .