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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: In the recent past, the Federal Government has toyed with the idea of increasing the Capital Gains tax to 75%. With the amount of increased debt, I expect that this will come about in the next Budget or even before if that is possible. I know that the CG tax was introduced in 1972 and was increased and decreased several times since then. I am wondering if any of your members who are tax gurus would have an opinion on this. Would the Feds have a valuation day so that the CG would be taxed at 50% up to that day and 75% after that date? Or would they would just go with 75%?

Read Answer Asked by stephen on April 28, 2020
Q: Hello 5i!

Appreciate all the great work.
I am looking for a canadian as well as US listed tech ETF. And semi-conductor fund to be held in my RRSP. Diversification and of course hoping for long term growth.
Currently XIT (TFSA). Using the room in RRSP for US listed dividend stocks/ETF's. Or whichever is the most tax and growth efficient.

I'm wondering what your top picks are in that sector and why? One concern of mine is some have a much higher mer. Is that worth the performance in the long run?

Or better bang for your buck on keeping fees low as usual and the most diverse fund. Company and cap wise. Hence holding a primarily large cap and semi conductor. Or just 1 solid all around.

If I'm missing a far better pick please enlighten me.

Thank you for putting together such a great site and program. Info is fantastic.
Read Answer Asked by Adam on April 28, 2020
Q: My question is what is the new cost base for UTX, now RTX?
I held UTX and then it spun off Carrier and Otis. With these spin offs, I thought my cost base would be reduced for the spin off values for Carrier and Otis. But itrade and also Globe & Mail still show the original UTX cost base. 
I read that the spinoff and merger where to a non-taxable events.....or that's I took it.
Any information you can provide me to clarify this situation......Thanks.....Tom
Read Answer Asked by Tom on April 28, 2020
Q: I am looking at the fixed income side of my portfolio and I am questioning the wisdom of holding CLF. Now I know there can be some sense in holding bonds even when interest rates are low (ie for the yield to maturity (YTM) and for the possible capital appreciation if interest rates go even lower). But for CLF this barely applies: the avg YTM is only 0.56% and the avg duration is 2.66 years (according to the Blackrock website on Apr 27). Thus the potential capital appreciation is very capped as the appreciation would only be in the 1.5% range if interest rates dropped to 0 and yet the potential capital depreciation is much much larger if interest rates rise significantly. So one is risking capital for a very low ytm without much potential upside and if interest rates rise, a potential rather large downside. Wouldn't holding cash make more sense?
Read Answer Asked by William on April 28, 2020
Q: Hi,
I have a few questions.
1) BAM is still about 50% off its February high. Why is that, given that so many other stocks have recovered considerably more? What is your opinion of it as a long-term investment? What about BEP?
2) What is your opinion of MIC as a long-term investment? Does it at least merit a “hold” at present?
3) How likely is it that the following small-caps will survive the present crisis: PL, HTL, ENW, VFF and PILL.CN?
Thanks,
Camille
Read Answer Asked by Camille on April 28, 2020
Q: Hi gang, from a tax perspective, which is better to have in a non-registered account, bond or guaranteed investment certificate? Thanks
Alnoor
Read Answer Asked by Alnoor on April 28, 2020
Q: What is your current best pick (or top 5) for pure growth over 1-3 year term?
Read Answer Asked by Jeff on April 28, 2020
Q: Hi Peter
are you still comfortable with MMX Maverix Metals? It's price is about the same as when you put it into the growth portfolio, down about 25% from it's high.
I was thinking to purchase it or XGD.
This would be for a 2 year hold. XGD is going in the right direction so I am leaning toward it.
What is your opinion on these two stocks?
Thanks
Ron
Read Answer Asked by Ron on April 28, 2020
Q: I noticed how supply chain related companies are growing after watching the mess with PPE and other medical supplies. I also read/hear there may be a rise in Nationalism in the future. I tend to believe this also, but Canada rushed signing the CUSMA the last day before breaking from Parliament (which I think was reckless considering we were in a crisis). I'm guessing most people (including myself) don't know a lot of what they signed off on. So do you think it's possible this may limit the amount of "new" Canadian manufacturing taking place as far as North America is concerned?
Read Answer Asked by Paul on April 28, 2020
Q: I have all three of these companies in my portfolios which include non-registered accounts, TFSA's, and trust accounts for my granddaughters, more or less equal weighting overall. I am still not sure of which one(s) to trim or add to. Do you have any suggestions based on fundamentals and balance sheet as well as growth potential. I am not considering the particular type of business they fit into here but rather that they are all small cap and volatile but with potential. Or perhaps should I just keep them as is. Thanks!
Read Answer Asked by Rob on April 28, 2020
Q: Hope everyone is doing okay at 5i.
I am looking to build a new RESP portfolio for my young granddaughters (ages 3 and 7). I would like to build it with a mix of equities plus a few ETF's to help balance and diversify. Thinking of 10 holdings of equities and ETF's. I would really appreciate your recommendations for a mix of equities and ETF's for this RESP.
Thank you,
PD
Read Answer Asked by Patrick on April 28, 2020
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