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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: I am asking this question on behalf of my son. He does not like to invest on his own, he has no interest and probably never will. I am thinking of setting up some kind of weekly investment program using Wealthsimple (to save on commissions), to acquire a fixed dollar amount of shares/ETFs every week. This will serve as his pension in the long run. He is 31 years old. He is fairly conservative but still young so can easily assume some risk.
1. Do you think using Wealthsimple is a good choice.
2. Do you think that investing a fixed amount every week in the same shares/ETFs is a good strategy OR would you recommend doing so every 2 weeks or on a monthly basis. (If the markets (on average) don't move too much from week to week we can increase the investment window.) Would you recommend a different investment strategy?
3. What would you recommend as a good mixture of ETFs and stocks for somebody of his age and risk appetite (to acquire and build on over time).

Thanks again.
Read Answer Asked by Walter on May 10, 2021
Q: Hello Peter,
My margin account is dominated with US stocks and a corresponding borrowing of US dollars. The Canadian dollar has been exceptionally strong probably at the top of the trading range. I generally prefer not to speculate on the dollar and keep the borrowings in the same currency as the assets. However, I am tempted to convert about 50% of the US borrowings to Canadian.
In your experience, would you endorse this, or just stay the course?
Regards
Rajiv
Read Answer Asked by Rajiv on May 10, 2021
Q: Hi, a sector rotation in the market, in recent months from high growth names to value has been quite visible. Value, I believe, also includes cyclicals like financials, industrials and consumer discretionary sectors. Materials and energy, seem to have already shot up multifold. Portfolio Managers appear to agree for this trend to continue for a while. I am trying to catch some more exposure to the Canadian value companies, in those sectors. We own banks 15% and rails 5%. Looking for your expertise to have a list of your preferred names, which are not overly expensive and have room to grow. Also, if you could recommend an etf for Cdn companies to have exposure to value. Thank you
Read Answer Asked by rajeev on May 10, 2021
Q: I am thinking about selling Couche Tard and buying GoEasy. I am concerned about what their confusing move for the French grocer meant. It was over so fast and they had to know the government would not been very keen. Was it signaling that they have run out of convenience store targets you think? What was that exercise telling investors? I know you like both but what one do you like better in my TFSA? When do you add sub prime exposure? When credit spreads are massive or when the economy gets back on solid footing? Thanks
Read Answer Asked by Martin on May 10, 2021
Q: Recently, I transferred the following mutual fund 'RBC SELECT GROWTH PORTFOLIO FUND' into a self-directed online brokerage in the approximate sum of $40,000.00.
Can you please recommend a similar ETF(s) that are comparable? Thanks
Matt
Read Answer Asked by Matthew on May 10, 2021
Q: PHO Should we wait for a higher offer or sell as it is dead money and is trading at the take out price? Which stocks would be a good replacement either in Canada or US with the same risk profile as PHO?
Thank you for your service!
Read Answer Asked by Ozzie on May 10, 2021
Q: Hi 5i,
Thinking about initiating position in GXE. How did earnings look to you going forward?
Share price has run up quickly in last two weeks, would you be interested at current prices or does it have more room to move up?
What would be your three best energy plays for short to medium term?
Thx
Jim
Read Answer Asked by jim on May 10, 2021
Q: I have received voting materials from XOM and there is a lot of discussion about a hedge fund called "Engine No. 1" that is trying to insert some directors on the board of XOM. This is interesting to me. Are you familiar with this effort? Can that even happen? And should I follow XOM's advice and vote along party lines?

Thanks.
Read Answer Asked by Marilou on May 10, 2021
Q: In your response to a reader's question about MFC's earnings you said "The stock remains very cheap at 8X earnings, and can benefit if interest rates rise."

While I agree with you, I have now held MFC for 15 years and am beginning to lose patience on the turnaround. MFC pays a nice dividend, for income in my RRIF, but on MarketCall today, Norm Levine is still negative on MFC. He says they may not benefit as much as you might think if interest rates rise.

I have done well on SLF, which is 1.8% of a diversified portfolio,. Should I just throw in the towel on MFC and double my position in SLF?

If not SLF, what would you recommend? Or should I be patient with MFC for a few more years?
Read Answer Asked by David on May 10, 2021
Q: What three US and three Canadian Public companies would you recommend for growth and management abilities/performance when looking at a 10 to 15 year horizon. (In order of your preference)

Thank you for the incredible value your investing insight has given me over the years!
Read Answer Asked by Michael on May 10, 2021
Q: In your opinion, which sectors of the market would you consider to have the best momentum for the remainder of 2021? Would it be tech, biotech, health care, industrials, mining, gas & oil, or value stocks? Which areas to you predict to be most promising in Canada or in USA? I am wondering where to put some extra cash.
Thanks.
Read Answer Asked by Catherine Ann on May 10, 2021
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