Investment Q&A

Q: I would appreciate a sampling of hedges for the NASDAQ 100 & S&P 500 please.

Q: What is your dividend and share price growth opinion on these 2 over the next 12 months? It seems that their primary revenue source is selling data which provides limited growth. They seem to have lost out on the content distribution sector and I don't see new growth areas for them. Where do you think their growth will come from? I currently hold both (which is not good) and am considering selling both. I had originally invested for share price growth and dividends.

Q: Do you think that bonds from Brookfield property are at material risk of default? If I am understanding financial press, their credit ratings have dropped. But their values have gone up more than 5% recently.

Q: Market timing for investing in QQQ. Is this the good time to get in?

Q: I've held both companies from time-to-time and am interested in STEP at current prices. SHLE seems a bit more volatile (good and bad).

How would you rate them?

I'm assuming that as long as the producers are maintaining or increasing production, these companies have potential.

Q: Do you think there will be a dip first week of January when people take some profits and don't have to pay the taxes until 2025? Should one sell some stock if they're in registered accounts next week and take advantage of this?
Thanks

Q: Happy Holidays,
I have a question about tax efficiency on HISA ETF investments in non-registered accounts. Do the dividends received from these ETFs qualify for any dividends tax credits? Or are they being treated as interest income, such as GIC, which will be subject to the usual marginal tax rates?

Thank you,

Q: Hello 5i
Could I have your assessment of RKT please.
Thank you
Dave

Q: I have doubled on GOOG - now 12.5% of portfolio. P/E kind of high? hold or reduce?? Thanks Jim

Q: Hi there,

I'm looking to put my 2024 TFSA money into once concentrated bet. This would be a longterm hold (ie: decades possibly, if the story keeps getting better). Do you think LMN would be a good name that would qualify? If not, what would currently be a better bet?

Thanks!

Q: Hi Peter,

From a risk-return perspective over the next five years, which is the better investment option? Purchasing an equal weighted investment in the magnificent seven, SPY, or QQQ? Please explain your rationale.

Thanks George

Q: Hello Peter,
Any idea why topicus is not participating as much as lumine group. The stock seems to be held in the trading range in the low 90s. I thought the fundamentals for topicus was good.. I am still down on topicus and was wondering if i should take a loss and move onto to lumine group. Thanks very much

Q: A follow up question on the previous answers on TFII acquisition of Daeske.

Does 5i feel like TFII did a good job of integrating the previous acquisition and therefore do we have confidence in there ability to integrate this larger one?

I'm concerned about the premium paid here and how much Goodwill is included and if we feel like TFII did a good job of closing the gap on the Goodwill of their previous acquisitions?

Thanks!

Q: This is just a comment on Bob's question about the best and worst months in the stock market and I always remember this fun sarcastic quote from Mark Twain. Happy Holidays!

“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”

Q: Down 17% on BNS. Would you sell for a tax loss or stay the course? Thanks for your support in 2023.

Q: Hi 5i
You recently answered this question from Steve:

Recently a couple of younger friends (mid-60's)have just converted their RRSPs to RRIFs. Except for the possibility of needing the cash flow, I can't understand why they would want to convert to a RRIF.

Am I missing something? Are there advantages to converting early?
~~~~~~~~~~~~~~~~~~~~~~
Another reason his friends may be doing this is long term tax planning. Quick example, a couple in their mid 60s each has 500k in RSPs. If they were to both die suddenly that $1 million all gets reported as income on one return and most of it is taxed at over 40% (in BC the amount over $241k is 53.50%). To avoid this, the couple would need to live long lives and gradually draw the money out. But because none of us know when our time is up, they could take some out now in the 20% or 28.2% tax brackets (BC rates). The winners will be the kids and grandkids, the loser will be CRA. So by taking money out before 71, they are increasing the years when they can take money out at less than 30%, and reducing the potential giant tax bill at the end. And if they have not fully funded their TFSAs, they can use this money to top them up. Then going forward their interest, divs and cap gains aren't taxed. In the RSP or RIF, they will be taxed on all 3 when they take it out.
Greg

Q: Did TFII indicate a financing was necessary for their acquisition?

Thx Blake

Q: A few months back I asked a question about timing for a conversion of American dollars to Canadian dollars. My understanding at the time was the Canadian dollar would weaken over the coming months. As I’m in no hurry, you agreed waiting for a decline was a good strategy. I’m still okay waiting but was hoping you could provide an explanation as to why the US dollar has been weakening. I’m somewhat perplexed that our dollar would be showing strength given the difference in the two economies. Given the US is entering an election year and our federal government continues to demonstrate its fiscal incompetence with almost every announcement (sorry, couldn’t resist!), could you please also provide a ‘best guess’ for where the Canadian dollar might land 6 months from now.
Thanks, as always.

Q: Uber for quite some time has been stalling out in this $61.00 range. HPS has been stalling out in the $81.00 range. Could this go on for quite some time before it moves up, if it moves up? Meanwhile, on my radar 2 securities you are familiar with have been getting a lot of attention lately being ZM and SNAP. Would you recommend them? Wishing you the best of the season.

Q: With a long term view, where might Hammond find itself in 3/5/10 years? They are clearly doing something well, have had amazing returns, but imagine they are still relatively unknown to the greater market (as well as being a sub $1-billion market cap? - lack of institutions own it maybe?)

The addressable market must be growing as everything electrifies - do you think they'll acquire / be acquired? I see it is trading near its 52 week PE high, but is there an argument it is still undervalued? Could this ever be a $5 billon market cap company? Debt seems low. Do you know much about management? Do they ever issue shares (or follow that CSU model of never issuing).

Thanks in advance. - Jeff