Investment Q&A

Q: Is there any reason to react to the news and subsequent dip in share price coming out about TD's lending practices? Thanks.

Q: Please accept my apologies for what could be a request for a long-winded answer. You welcome to debit my 5i bankroll for 5 question credits in effort to better compensate you for your time.
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If possible, please provide your opinion on something I wish to term "Peak Credit" in Canada. We are all aware that Canadians are spending themselves into a life-long love affair with mortgages, lines of credit and credit cards. With Canadian interest rates at 35 year lows, the availability of loans and credit climb while region-specific real estate prices inflate to valuations that seem to defy logic. Young families in their 30's commonly have mortgage debt over $500k and barely earn the income to cover payments at today's rates.

In general, what is the mix of insured/un-insured mortgage debt on the books of Canadian banks? If wages are not keeping pace with inflation and the cost of living, how are Canadians ever going to own their own home? Are we doomed to a life of the English, where the concept of home ownership is more of a dream than it is a reality?

Do you feel banks in Canada are prepared for higher rates in the next 3yrs?

Is Canada showing the early signs of a credit bubble?

Do bank common stock investors have anything for fear?

Am I a coyote howling at the credit moon?


Thank you for your guidance. This topic should be on the minds of many Canadians.

Q: Can you rank these Banks for me. Thank you

Q: TD announced earnings today. Seemed ok to me but markets obviously disagree. Comments please.

thanks

Q: TD represents 6% BNS 4% and CM 2% of my portfolio with no other banks.
I am considering switching BNS and CM to RY or should I go with ZBK for direct exposure to the US. Objective is growth. Should i increase my financial exposure? Add insurance Co or stick with banks?

Q: Hello,
I bought a sprinkling of TD E funds for my grandchildren. I am wondering if this is a good choice or if there is an alternative. These have been constantly increasing and are dripped.Should I just leave things alone and let them percolate?
thank you
Stanley

Q: Financials are currently at about 18% of my equity portfolio i.e., about 3% above target. I am thinking of trimming back on one of TD, RY or POW. Would you agree with a slight trim and which one would you suggest?
Thanks for your great service!

Q: I own 3 banks - TD, BNS and RY. Over the past 3+ months, TD share price has definitely underperformed the other 2 banks. It seems this happens every day. Can I get your view on TD? Do you still like it?

thanks

Q: Hello 5i team. My question is in regards to taxation. I have an investment account at a CDN discount brokerage in US dollars. If I was to buy a cdn company say TD bank that trades on the US market and buy it in US dollars how would the dividends be treated? Would the dividends be paid in US dollars or paid in CDN dollars then converted back to US dollars? If they are paid in US dollars then are they subject to the 10-15% US withholding tax? I am trying to find investments that I can buy with US dollars but not be subject to the US withholding tax. Thanks

Q: When analyzing Canadian stocks with considerable exposure to the US, how much of the stock appreciation in the last 5 years would be attributable to the declining Canadian dollar, and more importantly, would a rising Canadian dollar have the reverse effect? Would the effect be different for a utility like AQN with large capital investment, as opposed to a services company like TD? Would management participate in hedging strategies to limit any negative effect on stock price?

Q: Hi : I'm a little thin on US exposure. Would it make sense to switch from BMO to TD?

Thanks

Q: Hi Peter and team again
I am looking at my SDRIF.
I have TD and RY in this account. TD has grown to a 10% stake, so I am thinking of selling 50%. What replacement do you recommend? BNS or XCI or other.?
I also have VISA in this account that has been flat all year, also being a 10% stake, I can sell 50% or all. Was thinking of SLF, PWF or STB. I would really like to have high yield investments here. Do you have any other high yield investments to recommend?
I understand this account for two questions. No problems.
Thanks
Margita

Q: Hello 5i:
Banks make up 23.5% of my portfolios - TD 18.5% and BAC 5.0%. I have substantial gains as purchases were made during financial crisis. Should I lighten up? If so should I reduce my TD holdings to half or any other suggestions?
Thanks for your great advice throughout the years
Tom

Q: Can you tell me the ticker symbol for the preferred shares issued by TD in August of this year. It has a very good dividend and the renewal terms are I believe much better than than other resets.

Q: I keep reading that there has been a great rotation away from income/dividend stocks into growth though I dont see much evidence of it. My TD, RB and Telus are not down at all.

Can you explain this belief and if there are examples of beaten up dividend stocks, CDN or US, can you recommend a few for long term holds?

Q: I am very overweight banks (short term strategy)with significant gains.Do you feel a rate hike Wed. is most likely? Would it be prudent to buy short term hedging?

Q: I own 3 banks - TD, BNS and RY. TD has handily underperformed the other 2 banks over the past 3 months. Any explanation? Also, could you rank all major banks in order of your preference?

thank you

Q: I am considering buying TD because of their US exposure. What percentage of their profits are from the USA?

Thanks,
Wes

Q: I am considering adding to my positions in SLF and TD. Given murmers that Poloz is considering a cut in interest rates on Dec 7, I'm wondering if it's wise to wait until a decision is announced.
Further, could you comment on the implications for these 2 companies in an environment where we see Canadian rates staying the same or going lower while American rates are trending upward.
Thanks for the great service!

Q: Hello 5i,

I'd like to add some financial exposure to my holdings on the assumption of longer term rising interest rates and new political realities in America. Which of the three noted companies would be your preference for both growth and income.

Thanks