Investment Q&A

Q: Hi
Before I posted this question, I went through CMS archives and searched the questions bank here as well. As I didn't get any "hits" I thought of asking you folks.

I was recently told that establishing a Joint Partner Trust is a good way to go if one

a. wants to avoid probate fee even for the primary residence
b. to shelter probate and other fees for assets held in a private corporation
c. transfer wealth to future generations with certain amount of protection.
d. Arguably the best way to go forward if one's adult kids are in the US (through a Dynasty Trust)
Any thoughts about JPT? Especially for professionals who own a private holding company/corporation. If you think JPT is not the way to go, what would you suggest?

An article is begging to be written in CMS!
Many thanks.
Mano.

Q: There's an election promise involving Canadian banks and 3%??? Would you please elaborate?

Q: Hi 5i,
I have been investing in my work-RRSP for a number of years and am somewhat lost in trying to define the proper calculation to track my progress. As an overly simplified example,
Year 1: invest $10k
Year 2: invest $5k
Year 3: invest $7k
Year 4: current value $30k

What kind of calculation would help me calculate the growth? Something like compound annual growth rate seems to only take the beginning and final values into account and I was hoping for something with a little more substance since I'd be continually adding to this fund every year.

Q: There has been a lot of talk about hyperinflation coming. Do you have any thoughts on the issue and how would you adjust your portfolio to protect one's capital and/or take advantage of increasing inflation.

Q: Is there still a reward of credit for referring a new client.If so,please advise method Txs

Q: How does a company repurchasing it's own shares, protect against the action assisting a potential takeover ?

Q: what would be a good sector to invest in with possible market downturn scenerios?

I've heard some people say commodities are a good play in a downturn espeically due to inflation but I can't see how they would be due to demand destruction from higher prices.

I think bonds and equities would both suffer - it seems they are more co-related nowadays.

Can you recommend a safe haven in anticipation both a credit-binge/inflationary-based downturn as well as a credit-bust/deflationary downturn?

Q: Hello, can you point me to where I can see your ETF model portfolio. Thank you

Q: Hello 5i team,

What are your 3 best ideas today for multi-bagger return for a 5 year hold assuming a well balanced portfolio and risk isn't an issue. Thank you,

Wes

Q: Good Morning,
A while ago there was a nice article on forward P/E would you be able to send a link to this?..I keep getting confused about forward P/E whether a higher Forward P/E is better or worse. Also the Forward PE/EBITA how how does this give an insight on the current
vs expected.. Thanks. Regards,

Shyam

Q: A reply to James regarding BMO. I have a margin account with BMO with mix of Canadian and US currencies. Dividends are credited in the currency of the issuer, I can settle sale and purchases in either currency of my choice. Nothing ever converted unless I choose to do it. Complete flexibility online. So I wonder if it is familiarity with the online system that is not getting James to do his choice or maybe it is a different rules for registered accounts.

Q: A reply to James regarding BMO. I use BMO Investorline, but don't have a US account. However, in my RRSP account, I bought a US ETF in CAD, but when I sold it, I selected to settle in US dollars and it allowed me to do this. The exchange rate didn't make sense to me and when I called and asked for an explanation it still wasn't convincing. Not the same as what you're dealing with, but I agree that sometimes they don't appear to be very helpful. I've had both good and bad experiences, it almost seems like it depends on who answers the phone. It doesn't make sense that they can't do what you're asking for.

Q: Where can one obtain a chart of the margin levels on the TSX as is available on the US exchanges? Tx.

Q: Good morning 5i team
How much of a strategic threat does 5i feel global Fintech is to the largest Canadian banks? And, what do you the Canadian banks doing to ensure their competitive position?
The July 17th Economist article "The funding frenzy" notes "a funding round in June valued Klarna, a Swedish 'buy now, pay later' start-up at US$46 billion." They quote other similar examples. Smart folks are making these investment decisions in finch start-ups What should the small investor be considering today about their investments in Canadian banks?
Thank you.
Edward

Q: It looks like around Seven AM this morning the Canadian dollar abruptly shot up a more than 1%, thus wiping out any gains I might make for the day. Any idea what the cause was? Any predictions about where the dollar-dollar ratio is headed in the near term? I hold a lot of US stocks in unhedged Canadian ETFs and am now reconsidering the helpfulness of hedged products.

Q: Wondering your thoughts on this UK company going forward?

Q: Hi,

In a previous response you indicated that you would use ETF's to complete the fixed income portion of a portfolio. Could you explain your rationale for this as I have been under the impression that any ETF, even a bond type, carries substantially more risk that purchasing a bond directly. I have a couple of short term bond ETF's but have more money allocated directly to bonds/GIC's in my portfolio.

Thank you.

Q: Could you explain to me the difference profitability and positive cash flow and if possible could you give me an example thank you

Q: Big drop in the market today. Is this a correction or are there bigger issues. Thanks. Ernie

Q: POAHY:US is the symbol in NY for Porsche Auto in Germany (it’s an unsponsored ADR and is not in your data base) . This business is held in the EWG (Germany) ETF. In addition to holding a modest amount in EWG, I also have a tiny position in POAHY. I thought of topping up after reading some near-rave reviews in Barrons on July 6, 2021. Barrons also listed it as a PICK in its "Picks and Pans" on 6 July. I would appreciate very much if you would please care to comment on Porsche Auto Company.

POAHY pays a healthy dividend (4.85%). More troubling than the high dividend is that it does appear to be seriously under-valued. Is it a value trap, you think? And do UNSPONSORED ADRs carry more risk? Thank you.