Investment Q&A

Q: A general question about the drop in Gold prices. It seems from the crystal ball gazers that if Trump spends like crazy that this will fuel inflation which should be good for gold. Why the disconnect?

Q: Due to Trump's election and his political/economic agenda, would you recommend taking up a position in an American Equity fund at this time? Or, would it be wiser to "Wait and See" because of the market's current unpredictability/volatility? Thank you.

Q: Hi team,

Based on the U.S. election result and the change in tone in Washington towards a more pro growth and pro inflation scenario, can you recommend some CDN and U.S. cyclical stocks that could do well in this environment? I'm looking to trim defensive and interest rate sensitive stocks and establish positions in more cyclical industries.

Thank you,
Jason

Q: Any opinion of the firm and their funds, Ewing Morris, in Toronto?

Q: Portfolio question..if I sell a security in my cash account at a loss, can I immediately buy the same security in my sheltered account (RSP or TFSA) without endangering the capital loss or do I need to wait 30 days?

Q: Hi Guys,

My 82 year old parent's new financial advisor ( the other one just disappeared without notice) has propose the following for their TFSA:
Mr.; MER Allocation
Fidelity Global Monthly Income F .80% 20%
Fid Monthly Income F .70% 20%
Fiera Income Opportunities F .82% 20%
First Trust Senior Load ETF ? 10%
Northwest Healthcare Property 10%
Pro Real Estate Inv. Trust 10%
Healthcare Leader Inc Fund EFT ? 10%

Mrs.;
Dynamic Blue Chip Eq. Fund FE ? 30%
Dynamic Global Value Fund DSC ? 3%
Dynamic Stragic Yield Fund LL ? 21%
Fidelity Strategic Income Fund F .75% 26%
Cibc Cdn Equity Auto ? 6%
CI High Income FE ? 8%
CI High Income Dsc ? 6%

Both are low income and live off their dividends.

What I am looking for is a general answer; yes it looks OK or are they still paying way too much for fees (the advisor is charging 1% + to handle their investments).

thanks,

Jim

Q: Could you provide me with 5 Dividend {Non Financials} paying Companies for a long term hold {3+ Years}.

Q: Where is the best place to hold some short term cash that will be deployed over the next 2-3 of months? Is it worth holding in high interest account, ETF or just to leave as cash and deploy as opportunities come up.
Thanks

Q: Hi Peter
Can you comment on Binary Options? My friend put $10,000 with Magnum Binary options two weeks ago and has been told that she is now at $10,750. They recommend that she increase her investment to $50,000 and they will manage it to make her some money. She is dealing with a fellow out of Bulgaria and it sounds a little scammish to me. Any thoughts?
Guy R

Q: If I receive $10000.00 in dividend income, do I get an additional 18% contribution room in my RSP from this income?

Q: HI Peter and team
I heard on BNN a couple of days ago, that you can be taxed on income in your TFSA, if you sell and buy too often. What are the rules?
Cheers
Margita

Q: Hello 5i
Thought I would ask Investor portfolio management and psychology/behaviour question.

As I watch my profits in companies like Emera drain away 2% per day ( down $5/share since August), I wonder what the statement to investors should be when the question comes up, why did we not get out seeing clearly this stock is in a down trend and with rates moving up, is going to be out of favour and see price declines?

Waiting for an annual dividend of $2 when in four months $5 of capital disappears, just does not make good math sense or a profitable stance.

In September this was a good investment. What are your thoughts on this today with debt high, rates moving and short sellers pointing at companies like this?

Should we not have been selling at $50 instead of holding at $45.....and watch the price tick lower?

As you can imagine, it is tough watching long term paper profits in REITs, Telcos and utilities drain away.

Would you please offer your thoughts on the emotions that arise in this situation and with the stated company and sectors?

Thanks
Dave

Q: Re: Jason question
I would very highly recommand the site "Masters in busines" from Bloomberg and scrolll down to the interview of Aswath Damodaran by Barry Ritholtz, on Valuation, data and investing. I consider this interview the most unbiaised and educating I never had the chance to hear on the difficulties of valuing companies.
IN HOPE THIS IS USEFUL
Claude

Q: Hi guys,

I was looking at Free Cash Flow Yield as a metric to evaluate companies that I want to invest in. Do you find this metric useful? Also, what would be considered a good free cash flow yield? I've heard people look at companies with 10% free cash flow yield, but that seems like it would be hard to find. Some of the companies in my portfolio like Disney and Stella Jones seem to have closer to 5% free cash flow yield. I know Disney has been investing heavily in their parks, which has lowered their FCF yield in the short-term.

Thanks,
Jason

Q: Dear Peter

On October 17th.I cash out all my power balanced portfolio (13 stocks total 400 k.) to avoid stock crash if Trump wins US election.
Now US election is over ,Trump won and stock market did not crush on contrary it looks like stock is going up and up.

Because I want to replace my previously sold portfolio positions please tell me if you would do it now or would you wait for another month or two to buy previously sold portfolio positions.

I was happy with my portfolio which was pretty close to 5i Balance Portfolio and I'm not planning to change any thing in it.

AndrewB.

Q: Hello 5i Team,
Do Peter &/or Ryan make a point of meeting the management of the companies in your three portfolios?
Thanks
Dave

Q: Hi Peter and Team,

Fortunate timing in light of yesterday's surprising election results: Our daughter-in-law learned just yesterday that her RRSP of $77000 and her LIRA of $22600 that previously contained under-performing high MER mutual funds were transferred (in cash, thank goodness) to her new accounts at iTrade which I will manage. Given today's volatility, and volatility going forward, what should she do? She is a "60% equity, 40% fixed-income" investor. Thanks so much in advance for your valued advice.

Q: In case of a significant post election down draft could you suggest 3 Canadian stocks as a compelling trading idea? Feel free to wait for the opening bell with the answer.
Thank you for excellent service.

Q: Thank you for your opening reassuring message early this morning. Brian

Q: I just wanted to say ... thanks 5I! You are worth your weight in gold (in today's market, : ) .... ) by the simple graciousness and concern that you show for your investors.

Opening this morning's 5I message says it all.

Thanks, 5 I!