Investment Q&A

Q: Just a comment regarding reading Peter's article in Financial Post, if you are not a subscriber, you can read 10 articles for free each month, after that, pay wall goes up.

Q: When a stock goes ex dividend, the price always appears to be reduced by the dividend amount on the ex dividend day. So, for example, a share is quoted at $10.00 and pays a $0.10 dividend. The stock may show on ex dividend day at $9.95 - up $0.05 when it is in fact down $0.05 from the previous close. Why is this and is it the TSX that does this?

Q: Although the data shows that staying invested in low cost index funds over the long term is the way to go, why is it that pretty well ALL of the financial media just guess and predict all day long about which way the markets are going, or when the next recession is going to hit? Same for interest rates, if they're going up or down, by how much and when.

On any given day you'll hear completely opposite opinions. Some will say you should buy because stocks are poised for a rally, while others tell you to get out because a massive 2008 like correction is coming before the ned of the year!

Since timing the markets has been proven to be impossible why is it that's all you hear from the financial media? They're SO irresponsible and dangerous and create a massive amount of anxiety. Your thoughts?

Q: How many stocks would you suggest within TFSA of $25,000? Currently own 14 stocks in TFSA (AEM AQN ATD.B BEP.UN BNS ENB KXS MG NFI PBH SIS T TOY WSP).
Rest of portfolio (my RRSP, my husband RIF, lira & TFSA) reasonably well diversified for income conservative investors.
I appreciate your advice.

Q: https://www.cnbc.com/2019/08/26/lehman-like-drop-nomuras-masanari-takada-warns-it-could-happen-in-a-week.html Please comment on attached article.Thanks for u usual services & views

Q: Sorting stocks by trading volume, as asked by Rob:
https://www.barchart.com/ca/stocks/most-active/daily-volume-leaders?viewName=main

Q: Do you know of an app or program that could be used to screen on the basis of volume for stocks, especially Canadian ones. I am not a day trader but am looking to start tracking a few stocks that show unusually high volume without necessarily an accompanying increase in price. Thanks.

Q: The Analytics tool suggests I am significantly overweight geographically (Canada). The tool also suggests I downsize my financial holdings and increase Consumer Defensive, Tech, Healthcare, and Industrials. Which sectors would you tackle first to increase? Please provide 2 or 3 stocks/ETFs that you would recommend to begin re-balancing my portfolio geographically and by sector?

I am a long term investor and I have evolved over the years towards buying more of the larger cap companies.

Thank you!

Sean

Q: In regards to joint accounts, we joined our accounts 10 years ago. All tax information has both our names and the recipient type box is marked as 2 recipients.The sin number is the number of the account that the transferred account was transferred too, and is the first name on the account. Just split all statements for tax purposes. There was no disposition of stocks in the transfer account, just transferred in kind when we combined our accounts.

Mj

Q: Any advice on where to put savings to acquire a low risk return? Currently the funds are in a high interest savings account earning 2.75%. GICs don’t look much better. Looking for some alternatives with low risk but a little better return.

Thanks,

Chris

Q: Hi there,

What are your thoughts regarding the recent yield curve inversion and this signalling an upcoming recession? Markets seem sensitive to headline news and I'm wondering if now would be a good time to devote a decent amount of my portfolio to a low volatility ETF until things subside. If so, which ones would you recommend at this time? I believe BMO has a pretty good product line. In addition to this ETF holding I will also hold the Canadian growth equities listed from your Balanced Equity Portfolio.

Thanks!

Q: Comments on Warren advise to Thomas. Although a T5 is issued on the name of the lead holder of the account, when filing tax return you can split the dividends based on source of capital. Most tax filing program (if not all) will allow you to do this very easily.

Q: This is in respect to your answer today to Thomas. I am not a tax expert either but here is a link to an article from Jason Heath "money sense" which clarify this situation. :

https://www.moneysense.ca/save/taxes/tax-joint-investment-account/

Q: Hi Peter
You may have knowledge of this issue. I want to join my and my wife's stocks from individual non-registered accounts into one joint non-registered account. Do you know if there is a deemed disposition in this case?
Thanks a lot.

Q: Just a comment on your response to Alexandra question of this morning, EQ bank has one of the highest interest rate (2.35%) on high interest saving accounts with many perks like free bill payments ,e-transfers and CDIC guarantee up to 100K per account.

Q: In regard to high interest saving guarantee(previous question ) ,how much one could have to secure comparing with premium money marked fund and the difference on return?
Thank you.
Ebrahim

Q: WHAT IS PRO AND CONS OF HAVING CASH IN PREMIUM MONY FUND OF TD OR HIGH SAVING ACCOUNT OF TD AND HOE EACH INSURED ?
THANK YOU
EBRAHIM

Q: I note that a number of Alberta based companies, especially the oil and gas companies, are reporting better profits in part because of the reduction in the Alberta corporate tax rate that came into effect on July 1, 2019. As the earnings period now being reported is for the quarter ended June 30, how do the companies already get a tax benefit? I don't think the rate reduction wqs retroactive.

Q: Good morning...I am trying to find information on the dividend tax credit for individuals with no other income...it was explained that it was for all individuals ...my understanding that those individual that have no other income but dividends are treated if holding Canadian corporations...can you confirm or do you have a link for better understanding...Thanks

Q: With 10 year Canadian bond yields sub 1.50% ( call it the risk free rate) why are dividend stocks also experiencing weakness? I noticed the yield on many of my blue chip dividend growers rising. It seems the spread between the RFR and dividend yields is widening, is this an opportunity or is risk really increasing?