Investment Q&A

Q: Hello,

I have been reading up on this fund, and comparing it to other covered funds. This one utilizes a strategy whereby they generate income (currently ~ 11% yield) by writing puts. This fund is currently 75% written puts. My sense is that when this strategy is coupled with a long equity strategy, you still have similar downside (less the premiums you receive via selling the puts), but your upside is capped. Works if markets are not overly volatile and remain range-bound. But I think things could go really wrong quite quickly in a volatile downward trending market. It seems to me that the fund is short volatility, which could cause serious distress in the fund vs writing covered calls.

Have I got this right?

Appreciate your thoughts as always.

Q: BEP.UN is on a super slide right now. Even today (Jan 10, 2025) showing a 2.5% down. What is your analysis on this company? Why does it continue to trend so badly? Thanks.

Q: Very volatile with a lyrH of $2.37 & lyrL .35 with great leap since mid Dec last.Please comment on company especially as to Dec 31 Corporate update,Jan 9 closing of12,738853 shs @ $1.57 and flagship product,Genius. Buy,Hold or Sell. Txs for u usual great services & views. All the Best for the New Year

Q: In anticipation of continuing 'interesting' times, I am considering moving some WN.PR.A over to my TFSA. Since I am in my late eighties I consider this more of a fixed incme investment and less a consumer staple. Given the number of years the issue has exited, I am uncertain as to current redemption. I would appreciate relevant tho'ts. Thanks for all ideas that the team has provided over he past decade+. Bill

Q: I am still buying and looking around for the best possibilities. Today the motley fool listed the three Canadian stocks they would buy, if they could only buy three. I notice that you seem quite strong on cls these days. And perhaps I see you putting the breaks on for hps. I may be wrong on this perception regarding hps. But, I think you are getting stronger on cls. What would be your 3 stocks Canadian? I am particularly interested in your main reason for liking cls.? It has not corrected. I know you like moment, though. I wonder whether I would’ve put shop in it’s place with the recent drop?

Q: Hi team, Amazon DSP.. I think people just assume it’s always going to be a two-way race between Google and TTD. Can I get your take
on Amazon’s DSP and if it *could* become the 2nd most dominant player after Google? I have a 3% position and looking to make it 5%. Are you a buyer today? I have a 3.4% position in Apple which I’m considering selling completely to fund this.

Q: could you pls suggest a couple of US denominated etfs that track the sp500 - preferably equally weighted. Thanks

Q: Hello all at 5i

Was looking at the proposed transaction initiated by Bill Ackman's Pershing Square whereby additional shares of Howard Hughes Holdings are to be acquired by Pershing along with a simultaneous share buyback of approx. 5.8M shares. The proposed buyback would be financed via issuance of bonds (swapping equity for debt).

HHH appears to have a nice collection of real estate assets. Ackman has stated that HHH will be a permanent holding. Bill Ackman is a (very) smart guy but do you think HHH is a smart investment?

Thank you

Brad

Brad

Q: What would be your 3 top picks from the 5i Income Portfolio right now?

Q: As a general rule of thumb would you let a holding exceed 6% of total portfolio value even if the stock is running well?If the answer is yes what would be the max percentage you would be comfortable with?

Q: Hi Folks,
I'm looking to add some money to my RRSP - looking at adding to my position in either MSFT or GOOGL. Can I gave your opinion as to which one you would add to today.
Thanks

Q: How should I protect my portfolio before Trump introduces tariffs of up to 25%. Which companies would be most affected and might be sold before this happens?

Q: Hi 5i,

Basic clarification - when you allude to allocation percentages in a portfolio - do you 5i - speak to the allocation % in an OVERALL Portfolio? Example (All non reg and registered investment accounts) or within a specific portfolio (i.e. RRSP etc.)?

Thank you!

Q: Names like VRT, NVDA, SHOP have now corrected about 15%. I like to buy in these situations all the while being fully aware that I suck at timing the bottom of a correction, knowing only that I am getting a deal compared to recent highs. My questions are: Any red flags on any of these? Do you see other names with similar or greater pullbacks that are equally or more compelling? A list of those would be appreciated. Thank-you.

Q: Hi Peter and 5i Team,

Recently, Noah Solomon has had several articles in the Financial Post in which he describes the inherent dangers of the S&P 500 due to its high valuation, warning signals from the CAPE ratio, etc. (I’m using VFV as a typical ETF).

What is your assessment of his views? What strategies might a retail investor employ if there’s validity to his thesis?

Thanks as always for your insight.

Q: Walgreens had a huge run last Friday, do you think there is a turnaround materialized? Would you initiate position today for a long term holding?

Q: Are the California wildfire losses expected to have any impact on Canadian insurers, possibly as reinsurance partners?

Q: To my big surprise the monthly income from XDIV is classified as "interests" income at BMO Investorline and not as dividends income. A T5 slip will confirm this in a few weeks but in your view should it be interest or dividend? Thanks.

Q: Good day, 5I. Is it ok to sell a ETF in a RIF and repurchase immediately in a TFSA. There would be no capital gains or losses to claim. Thank you.

Q: As Google spent US$48 Bn a year (2024) it should have very robust search engines. The startup, perplexity.ai, is reportedly valued at US$9 Bn now. Mr Bezos and others back the firm. Personally, I haven't noticed big change for quite a while in Google's searching features. Do you if / know when perplexity might be brought public, and whether is looks at this point to be close to being knock Google's searching feature away? If it could, would you expect this to have much impact on Google's profitability?
Thanks for your valued insights.