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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: Linamar, Magna, Methanex and many other cyclical stocks are near lows. So in order to buy low and sell high, would this be the time to buy these cyclical stocks? What generally is a cyclical cycle? I keep thinking of Warren Buffet: Buy when others are fearful and sell when others are greedy!
Read Answer Asked by Helen on August 12, 2019
Q: Gold has had a good run up the last three months. Would you still advise buying it at this point in time ? If so, what form would you prefer (bullion or bullion surrogate, royalty receiver, equities (large or small) or an ETF ? Do you have a particular company you would prefer ?
Read Answer Asked by Jim on August 12, 2019
Q: Would you have a preference between IWM and IJR for small cap exposure? I know IWO has been a favorite but was hoping to capture some growth and value names. Are there any significant fundamental differences between these 2 ETFs. Also, could IJR be added to data analytics pls. I tried adding it but the system did not recognize the ETF. Thanks as always.
Read Answer Asked by Aaron on August 12, 2019
Q: Kinder Morgan's minimum reset preferred has a credit rating of 3H trades at a discount, pays 5.25% minimum dividend and if interest rates do a moon shot on reset day will pay 3.51% plus govn canada 5yr bond, why wouldn't this make a good income investment?
Do you know of a site for preferred info?
Read Answer Asked by Pat on August 12, 2019
Q: My question is about US/Cdn exchange rates. If I go to my bank as I understand it, I pay 2.5% on top of the exchange rate when both buying or selling U.S. dollars (I do pay less than 2.5% on my online brokerage account, though). This 2.5% fee results in a different final exchange rate depending on whether I am buying or selling U.S. dollars.

So my first question is, in an etf like VGG which is denominated in Cdn dollars but invests in U.S equities, when they apply the exchange rate to show the unit value in CDN does it include this 2.5% fee? Or is this 2.5% fee not applied?

My next question is related to the first one. You recently answered a question describing an (apparently) cheaper way to convert dollars between US and Can. As I understood it, if you want to convert USD to CDN, buy a non-volatile Canadian stock that trades on a US exchange with your USD, then phone your online broker and ask them to "journal" the stock to the Canadian exchange, and once they do that you can sell it for CDN. So the question is, does this avoid the 2.5% fee? (I would think it must, otherwise why not just go to the bank and change your money.)

Thank you.
Read Answer Asked by William on August 12, 2019
Q: There are plenty of forecasts telling us that bond yields are declining and may go to zero.
If they continue to decline , what does this mean and how can an investor take advantage of this. Your Asset Allocator tells me I need to move $500,000 into fixed income to balance my portfolio, which is predominantly equities.
Do I go to a bond fund , or actual bonds? If so what would you recommend? If bonds what type and term? I will hold for min 5 - 10 years.

Thanks and take as many credits as you wish.
Read Answer Asked by William on August 12, 2019
Q: Can you tell me the breakdown of the publicly traded Bam. subs that make up the % of Revenue and profits of the parent.
Read Answer Asked by Bill on August 12, 2019
Q: I note that a number of Alberta based companies, especially the oil and gas companies, are reporting better profits in part because of the reduction in the Alberta corporate tax rate that came into effect on July 1, 2019. As the earnings period now being reported is for the quarter ended June 30, how do the companies already get a tax benefit? I don't think the rate reduction wqs retroactive.
Read Answer Asked by Murray on August 12, 2019