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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: Hi,

Could I get your opinion on 2 investment paths contemplating at moment for equity portion of portfolio?

At moment my equity exposure is passively invested in IWO, VGG, VIU, VEE. I am trying to decide if I should sell off this passive postion, in part or entirety, and invest in individual beaten up securities, for example a number from your recent reports for North American exposure.

The objective would be to have a higher return 2-3 years out from this market. Not really concerned with volatility.

Thanks
Read Answer Asked by John on March 23, 2020
Q: Hello Peter and Team,

Thank you for your helpful guidance during this unprecedented turbulence. I know you've liked Docusign in the past, but do you like it even more now? Would it be a stock that potentially plummets after the virus is controlled, or would a raft of new users adopt it for the longer term? Any thoughts?

Brad
Read Answer Asked by Bradley on March 23, 2020
Q: On Sunday, PBS Wealthtrack aired an interview with a well seasoned advisor, R. Kessler, who recommended to raise cash as the damage to the stock market will get worse before it gets better due to a severe recession etc. His case made a lot of sense, and I would be interested in your comments on this statement.

Thank you!


Read Answer Asked by Sigrid on March 23, 2020
Q: Retired dividend-income investor. I currently own BNS and RY. I was planning on topping up BNS, then read an answer about harvesting capital losses. I had already take enough losses to cover my gains to look after 2020 income tax implications.
I selected BNS for its international diversification and RY for its USA diversification.

I am now considering harvesting my new BNS capital loss and was considering either CM or BMO for immediate replacement, wait a bit then do my original top-up later. Which bank to you consider the better replacement?

Thanks...Steve
Read Answer Asked by Stephen on March 23, 2020
Q: I have few bonds in my RRSP portfolio, one of them is RUSSEL METALS (HY) 6%19APR22. The price for this bond is down significantly in the past 3 weeks even though there is only 2 years to maturity. While my other bonds down 3-5% this one is down almost 20% so I don't think it can be explained by investors selling to free up cash... Is a risk that Russell Metals will go bankrupt in two years or will not be able to pay bond value at maturity? Is there a risk that bond issuer defers payout on maturity date or somehow avoids paying maturing bonds?
Read Answer Asked by Jeffrey on March 23, 2020
Q: I am a buy and hold investor with 5 to 10 years of time horizon.
Have the following 7 stocks in Canadian financials in the order of their weights in our portfolio. Financials makeup roughly 7.5% of the total portfolio including cash positions and we like their dividend. TD, RY, BNS, BMO, SLF, CM, and MFC. I like to reduce exposure to financials and also like to reduce number of different shares. Two questions:
1. Is 7.5% a reasonable weight considering the current situation?
2. Which one of these I should sell to reduce financial weight and to reduce the number of shares in financials?

Read Answer Asked by Naren on March 23, 2020
Q: I am trying to evaluate the appropriateness of selling covered call options in this market and thought with your experience and knowledge you might be able to analyse the situation. The premiums are high . But, I the risks are, too. You mention that a good way to get into this market is average into it. Well, if you buy Microsoft to sell a covered call on, you have to buy one hundred shares. That doesn't look like averaging in. You get a good premium But the market is so volatile that in a month, the stock could be much lower, and you have lost your opportunity of averaging in. Or, the virus could be more under control and the stock could be way over the strike price. And you may have lost the opportunity to have microsoft at a lower price. I know that this is always the case with selling covered calls, But, it seems that the current market exaggerates that situation. The only way that I can justify it is by saying that I dont think the turbulance will be over in a month and therefore go ahead. I suppose another safeguard would be to do limited covered call trading and average in with other money. I would be interested to know your perspective on this.
thanks
Read Answer Asked by joseph on March 23, 2020
Q: With respect to energy producers, would it be fair to say that producers such as Suncor, who also have refining assets, are better shielded against the current downturn in the energy sector, given that the cost of the input (crude oil) allows for a (theoretically) larger crack spread ? Unrelated to energy, do you believe that a company such as 3M, which manufactures various items used in the medical field, will weather the current corovirus downturn a bit better ?
Read Answer Asked by Mike on March 23, 2020
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