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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: retiring next week and now this happens
i will be totally dependent on dividend income
yes, i should have bond income but i don't
ytd shows:
50% of dividend portfolio is <20%>
50% at <37%>
should i sell <37%> portion to protect portfolio?
Read Answer Asked by john on March 16, 2020
Q: Hi 5i team,
I want to buy ETFs for my RRSP to capture the eventual market recovery. I'm thinking of the utilities and banks sectors. I understand that 'covered call' ETFs are not ideal to capture market gain in an upswing. Which ETF would you recommend for Canadian utilities industry? And which one for Canadian banks? Thanks.
Read Answer Asked by Willie on March 16, 2020
Q: Canadian pipelines have suffered along with most of the market during this correction. My understanding is that they are protected by take or pay contracts with the producers. In other words you either take the capacity you agreed to or pay for it. The obvious concern here is that the producers opt to do neither, not having the money and facing bankruptcy. My first question is whether this is even true to any extent. Secondly, what would the response of the pipelines likely be? Do they ultimately become owners of non-producing oilfields?

Secondly my understanding is that shipping by pipeline is cheaper than shipping by rail. Given this scenario the remaining product should shift over time from the rail lines to the pipelines, keeping the pipelines full. The loser becomes the rail lines. Do you consider this to be true?
Read Answer Asked by Larry on March 16, 2020
Q: I have a few questions about negative interest rates:
1) how low was the US and Canadian bank rates back in the worst of 2008, and where are they today
2) what major economies currently have negative rates/for how long/how low (or high?)
3) for those countries with negative rates, has this affected the dividends paid blue-chip stocks on their exchanges
4) what are the best investments for "hiding out" should we get to negative rates
5) could you hazard a guess as to the likelihood of negative rates in N. America
Thank-you
Read Answer Asked by grant on March 16, 2020
Q: Dear 5i team,
Thank you for the Special Report. Could you kindly confirm a few things about the graphs in it, please? My broker account doesn’t show graphs like yours, so what is the blue line and what is the brown filled-in background- I was thinking high and low stock prices, but noted the left and right y axis are different so I think I’ve not got that right. And how do you read the dark blue graph at the bottom- what is the stock’s ‘relative strength’ relative to?
Thanks so much!
Read Answer Asked by Hilary on March 16, 2020
Q: Just before the sharp downturn in market values I sold about 20% of my growth holdings.if I was looking to add a 2 - 3 names back what would be your top recommendations for good value on price and long term growth prospects?
Also, what was the reason for the decline in CBO price?
Read Answer Asked by PETER on March 16, 2020
Q: For someone looking for income, what dividend stocks, in any sector, would you find most appealing?
Read Answer Asked by Michael on March 16, 2020
Q: Hello 5i Gurus,
The central bank authorities at the Bank of England and the ECB have, this past week given authorization to all banks (domiciled in the UK or Europe) that they will be allowed to release ALL of their strategic counter cyclical funds that they normally hold in reserve. From what I remember, this would be several hundreds of billions of pounds or euros. Question is: Does the US and Canada have similar "counter cyclical funds" (not sure if this is the correct terminology)? that they can use to support the economy temporarily?
Read Answer Asked by Keith on March 16, 2020