Q: I seem to not be able to find your News Update (update referred to in a question from Tom on 3 Oct). I am often puzzled about where to find them. Plse direct me.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Hello 5i.
In assessing companies you mention ROA, ROE and ROC. Aside from these would it be beneficial to compare ROC (sic. ROIC) with WACC? If WACC is more than ROIC and the company is shedding unprofitable assets, then would there be a case for still seeing that company in a favourable light?
Thank you
Stanley
In assessing companies you mention ROA, ROE and ROC. Aside from these would it be beneficial to compare ROC (sic. ROIC) with WACC? If WACC is more than ROIC and the company is shedding unprofitable assets, then would there be a case for still seeing that company in a favourable light?
Thank you
Stanley
Q: Is there a free site that provides information about moeny moving into and out of various sectors. (Sector rotation)
Q: From today's Globe and Mail: Equity markets opened lower Thursday as global bond yields surged higher. Mehul Daya, an analyst from South Africa-based Nedbank, believes bond yields are approaching the “Rubicon level,”
“The JPM Global Bond yield, after being in a tight channel, has now begun to accelerate higher. There is scope for the JPM Global Bond yield to rise another 20- 30bps, close to 2.70%, which is the ‘Rubicon level’ for global financial markets, in our view. If the JPM Global Bond yield rises above 2.70%, the cost of global capital would rise further, unleashing another risk-off phase."
Normally, 'risk off' means purchasing the very stocks which perform badly during rising rates, ie. dividend stocks. That would not seem to make much sense here. What sectors do you believe would be most and least affected by these rising bond yields? I know it supposedly helps the banks and insurers but we have been hearing that all year without much sustained impact on their stock prices. So I'm uncertain where to put new money.
“The JPM Global Bond yield, after being in a tight channel, has now begun to accelerate higher. There is scope for the JPM Global Bond yield to rise another 20- 30bps, close to 2.70%, which is the ‘Rubicon level’ for global financial markets, in our view. If the JPM Global Bond yield rises above 2.70%, the cost of global capital would rise further, unleashing another risk-off phase."
Normally, 'risk off' means purchasing the very stocks which perform badly during rising rates, ie. dividend stocks. That would not seem to make much sense here. What sectors do you believe would be most and least affected by these rising bond yields? I know it supposedly helps the banks and insurers but we have been hearing that all year without much sustained impact on their stock prices. So I'm uncertain where to put new money.
Q: Since the announcement of the new USMCA agreement I've noticed the Canadian market trending downwards, even the Balanced portfolio has taken a broad based hit from it. Any concerns you can see with the agreement that could be causing this distortion (while the US market rallies)? Or is this more sector specific?
Q: Hi 5i - I have a portfolio weighting question. Assuming I have a portfolio with 60% Canadian, 30% US and 10% Other International, would the 60% Canadian portion be considered on its own for individual stock weightings? For example, if I consider a 5% position in BNS a full position, should I have 5% of my total overall portfolio in BNS or 5% of the 60% Canadian portfolio?
In general, what would you suggest?
Thanks, Neil
In general, what would you suggest?
Thanks, Neil
Q: The TSX appears to be shrugging off the US/Canada trade agreement without much interest, once again by far the worst performing north American index. Are you surprised at the lack of response? Would you expect much going forward or should money be moved into US markets?
Q: On Sept. 24 I asked where I could find forward PE for the TSX, and you kindly supplied a link (thank you) but I don't see forward PE there, trailing yes but not forward. Nor anywhere else I've tried. Any ideas?
Q: A U.S. based financial advisor who specializes in ETF’s and is bearish on the market states in his weekly newsletter that a retired individual should hold an equivalent percentage of bonds as their age in their portfolio:
What would be your thoughts on this degree of allocation and what would you suggest?
Would your allocation change if the individual has already accumulated sufficient capital to take them to the end and still leave a nice inheritance?
If you do think that a retiree should have a percentage of bonds in their portfolio can you provide some ETF’s?
Thank you for considering my questions.
What would be your thoughts on this degree of allocation and what would you suggest?
Would your allocation change if the individual has already accumulated sufficient capital to take them to the end and still leave a nice inheritance?
If you do think that a retiree should have a percentage of bonds in their portfolio can you provide some ETF’s?
Thank you for considering my questions.
Q: I recall reading in Q&A earlier in the year that in determining percentage of sector allocation in our portfolio we use the stocks only total sum and not include the sum of our ETF's. Did I understand that correctly? If so, then to understand our sector allocation of our ETFs do we take the average of the ETFs' specific given sector allocation(i.e. for Financials in VFV,SPY and VIG approx. 14.30%) ? So if we have Financials sector allocations of 15% in Stocks and 14.30% in ETF do we view it as approx. 15% Financials in our total portfolio or is is understood to be the sum of the two(29%)? In addition to our personal investment accounts we have an investment account within our small family business.Should I be adding the sum of this investment account to our personal accounts for tracking sector allocation? Thank you for your assistance with clarifying sector allocation .
Q: TFSA and US listed stocks. Recently you recommended SPY a NYSE stock and various other US listed stocks for a TFSA. Is it not true that US listed stocks are not tax exempt? That there is a withholding tax on dividends? An example would be HOT.UN . XSP is in CDN funds and therefore not subject to tax in a TFSA?
Thanks for clarification if I am wrong.
Thanks for clarification if I am wrong.
Q: Hi Peter/Ryan,
I would like to get your opinion on TDF(Templeton Dragon Fund) a closed end fund yielding 8.4%. Bill Gates recently disclosed a 5% position in TDF. About 80% of TDF investments are in Chinese FANG stocks which are at a good valuation currently. What are your thoughts about TDF and are there any disadvantages of investing in a CEF. There could be further correction in chinese stock markets because of the trade war. Is this the right time to invest in emerging/chinese markets and which alternate ETF would you recommend.
Appreciate your expertise
Thanks
Ninad
I would like to get your opinion on TDF(Templeton Dragon Fund) a closed end fund yielding 8.4%. Bill Gates recently disclosed a 5% position in TDF. About 80% of TDF investments are in Chinese FANG stocks which are at a good valuation currently. What are your thoughts about TDF and are there any disadvantages of investing in a CEF. There could be further correction in chinese stock markets because of the trade war. Is this the right time to invest in emerging/chinese markets and which alternate ETF would you recommend.
Appreciate your expertise
Thanks
Ninad
Q: After the 2008 recession, which stocks/commodities made the quickest comeback. Also, which market US or Canada?
Q: can you help me understand why a stock earning 6% dividend and growing the dividend annually by 4% is not as good as a stock earning 4% and growing the dividend annually by 6%
Q: Hi Guys,
I mentioned to a friend of mine about your great service as he complained how his mutual funds have gone nowhere in the last 5 years with all the fees. He has signed up for your service and was wondering how would be the best way to utilize your service, he is 50 year old business owner and busy being a soccer Dad, should he divide his money in your 3 portfolios or simply look to go for a 60/40 split with 60 in your balanced portfolio and 40 in bonds. He did mention he had an interest in ETF, any thoughts how he can put his money to work over the next year. Thanks Anthony
I mentioned to a friend of mine about your great service as he complained how his mutual funds have gone nowhere in the last 5 years with all the fees. He has signed up for your service and was wondering how would be the best way to utilize your service, he is 50 year old business owner and busy being a soccer Dad, should he divide his money in your 3 portfolios or simply look to go for a 60/40 split with 60 in your balanced portfolio and 40 in bonds. He did mention he had an interest in ETF, any thoughts how he can put his money to work over the next year. Thanks Anthony
Q: I have been a long term Investor of the Mkt . I have my own rules which work o.k for
ME . I have been approached by a neighbour`s & friend son asking for advice re the Market .
I don't want to give or show him ALL of my bad habits. I wonder if you could suggest a couple of books to introduce this lad to the Mkt.He is about 22 & has some university under his belt. I always appreciate your wise advice
Thanks ----- don
ME . I have been approached by a neighbour`s & friend son asking for advice re the Market .
I don't want to give or show him ALL of my bad habits. I wonder if you could suggest a couple of books to introduce this lad to the Mkt.He is about 22 & has some university under his belt. I always appreciate your wise advice
Thanks ----- don
Q: Hi 5i
I know you typically add ones equity ETF`s plus all individual stocks to determine the total equity exposure in ones portfolio , but I'm not sure what the best method is to determine max exposure to any one stock when ETF`s make up a good chunk of the portfolio . There are some ETF`s that you would want a greater percentage then maybe the 5% max you might want for most of the individual stocks and some you might not want more than the 5%. . So if i have determined that i don't want more than a 5% waiting in any one equity do i add up all ETF`s and individual stocks and calculate the 5% or am i best to calculate the 5% number just on individual stocks since ETF`s are inheritantly diversified anyways ? Thanks in advance for your clarification .
Bill C
I know you typically add ones equity ETF`s plus all individual stocks to determine the total equity exposure in ones portfolio , but I'm not sure what the best method is to determine max exposure to any one stock when ETF`s make up a good chunk of the portfolio . There are some ETF`s that you would want a greater percentage then maybe the 5% max you might want for most of the individual stocks and some you might not want more than the 5%. . So if i have determined that i don't want more than a 5% waiting in any one equity do i add up all ETF`s and individual stocks and calculate the 5% or am i best to calculate the 5% number just on individual stocks since ETF`s are inheritantly diversified anyways ? Thanks in advance for your clarification .
Bill C
Q: I sold DOL today at a loss today as it missed estimates 2Q in a row plus guide lower on SSS.To me this is a receipe for short term weakness until there is a catalyst .I am looking to replace it with some of the following(likely 2 or3) & any of your suggestions,BNS,BCE CLS,NFI,TOY,VET,PBH ATA TFII SJ,BB. Please list your order of preference. Thanks for u usual great services & views
Q: I think that 5I offers incredible value for the money. But, what other services would you recommend for a fairly active investor. What do you think of services/newsletters like
insider trading, Contra the Herd, President's club, Bloomberg news. My budget would like be no more than $2500/year. Thanks kindly.
insider trading, Contra the Herd, President's club, Bloomberg news. My budget would like be no more than $2500/year. Thanks kindly.
Q: Trudeau's Canada is dead for business. No Pipelines, he wants to wean off Tar Sands, farmers can't get grain to markets Railways too busy hauling Oil, major international Oil Companies have left Canada, Why would any International Company want to expand into Canada ?, Uncertainty towards NAFTA is overhang to stock markets. Do we have to wait for Conservatives to come to power for our Stock Markets to improve. I guess the alternative is to be fully invested in the USA , Frustrated Investor RAK.