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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: Assume for the moment that I believe that the current market has just experienced a pull back as opposed to being at the start of a longer downward trend (bear market, recession, ...).

I have about 25% of my portfolio in income generating, relatively diverse, ETFs (xhy, xpf, xtr, ...) but I don't currently need the cash flow. These fell more or less in line with the TSX - in some cases less.

I feel like now would be a good time to move these ETF holdings to solid individual companies that have done worse this year (BNS -20%, TD -18%, ctc.a -23%, etc.) and in a recovery period should do better than the ETFs.

Your thoughts on this strategy?
Read Answer Asked by Gordon on January 02, 2019
Q: Hi,
Happy Holidays. Please deduct as many credits as needed. I mainly follow your balanced portfolio, some of your other two portfolios and some US stocks etc. I just transferred my pension to a LIRA and have 30% cash to invest. With this pull back the timing might work out well. Retirement is 12 years away and my husband has pension for the fixed income portion of retirement. I plan gradually start to deploy 20% of the cash (still hold 10% cash for now) and add to all my current half positions and increase my holdings back to full positions that been beaten down such as TCL.A, DOO, NFI etc. I am not sure about adding to the following and wonder if they are a show me story or a good opportunity. Their portfolio weights have dropped to roughly the 1% range all in registered accounts with no tax loss advantage. Would you add to the following or just wait:
FB
Photon
COV
DOL
ENB
BOX
Any other stocks in your Balanced portfolio that that you would not add to at this time? Does this plan sound ok? Any other suggestions/advice
Thanks,
Kerri
Read Answer Asked by KERRI on January 02, 2019
Q: With tax loss selling at the end would appreciate your pick of approx. 5 mid cap and 5 large cap stocks that you feel could do well in 2019 and beyond. I feel oil stocks are due for a bit of a rebound and the trade tensions will ease. Your thoughts. Thanks for the great service and Happy New Year everyone at 5i. Leaning toward stocks that pay dividend with some growth.
Read Answer Asked by kenneth on January 02, 2019
Q: After some frantic selling to beat the tax loss deadline I'm now in position to re-acquire the stocks sold.

The three I intend to re-acquire are: NFI, GSY and TFII, and what order should I re-acquire them? Certainly the order of the buy back should be based on the timeline of the foreseeable share price recovery, if at all. Thanks.
Read Answer Asked by Victor on January 02, 2019
Q: I'm in the process of adding to/updating my consumer cyclical, materials as well as financial sector, with a tendency to a balanced vs. growth approach. I would like to add one stock of the below selection for each sector. Can you please give some guidance and as to why said particular stock should be selected?

C. Cyc.: GC / MG / TOY Materials: WEF / MX / CCL.B Financial: BNS / SLF / VB

Many thanks!
Read Answer Asked by Dominik on January 02, 2019
Q: I am wondering about the sector allocation of these two SU and PKI. Given that they are both vertically integrated could they each be split between energy producers and consumer discretionary some how. It will create some room in the energy sector for a couple of more companies like WCP and VET. If SU and PKI could be split what would the split be on each one.
Read Answer Asked by Clarence on January 02, 2019
Q: From Bob's question:
Q: I can move stocks in kind from my RRSP to my TFSA account,
Looking at some of listed stocks that have had a bad year. Which ones would you pick to move?
What would be the advantage? And the tax implications?
Read Answer Asked by Serge on January 02, 2019
Q: Considering bitcoins' drop in value, does anyone have an idea of what percentage of nvdia's business is tied to Bitcoin mining? What other customer streams does Nvidia have and what percentages might they be? What has been nvidia's primary growth catalyst the last 3 years? Does nvidia's prospects continue to be bright going forward?
Read Answer Asked by Mark on January 02, 2019
Q: It feels like the end of 2018 was simply a perfect storm of conditions suited to create an impressive (and painful) but not overly unusual pull back on the TSX. Yet there is talk of recession and looming bear markets (I suppose there always is).

What's your take on this? Would you be buying the many apparent opportunities (like mx, cnr, ctc.a) or would you be cautious still?
Read Answer Asked by Gordon on January 02, 2019
Q: Perhaps there is confusion between "averaging down" and portfolio rebalancing. If a person had bought GSY or TSGI at $50 and they each were 5% of a portfolio and were considered to have cheap valuations at that time. If, after the market correction they are each 3% of the portfolio with no change in fundamentals is there a problem with bringing each one back up to 5% ? I look at GSY and a consortium of investors put $46,460,000 into it at $50.50/share on Oct 10. I'm sure they did a lot of homework and considered it to be very cheap. It must be a steal now.
Read Answer Asked by Clarence on January 02, 2019
Q: About half a year after spinning off its electrical business, and now concentrating more on the water / filtration side, would you now consider Pentair a better investment than when the two businesses were combined ? I realize this isn't a Canadian stock.

The P/E has come down quite a bit since that time. They only raised their dividend 3% this year. Although they have a long history of increases, this one isn't great.

Thanks,

Jim
Read Answer Asked by James on January 02, 2019
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