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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: When Yellen finally pulls the trigger to increase short term interest rates, do you think there may be a short term sympathy sell off of interest sensitive securities in Canada. I'm thinking utilities, telco's and reits may experience a correction in Canada. Do you think this will in fact happen and if so what sectors do you think will be most affected. Other than the lifeco's and banks any other defensive sectors you can suggest? Thanks Peter and team.
Read Answer Asked by Richard on June 01, 2016
Q: Hello to all of you at 5i,
It would seem that the US Fed will very likely raise its overnight rate this summer and there is a strong consensus among pundits that REITs experience quick declines when interest rates rise. How do you feel about Chartwell's vulnerability to that scenario? Is it as interest-rate sensitive as the other, more common types of REITs?
Robert
Read Answer Asked by Robert on June 01, 2016
Q: why all the heavy volume today on the tsx? Is this month end stuff?

Thx
Read Answer Asked by blake on June 01, 2016
Q: I was saddened to hear about the tragic loss of CEO of Spectra7. Where does this leave the company, since it is a small company? Do you feel they can move forward, or more likely to try sell the company now? I imagine it will take a long time to regain their footing? Or was there a lot of operational involvement from others in the company that could move it forward?
Read Answer Asked by Kel on May 31, 2016
Q: Ryan; Your Globe article on dual class companies was very informative. Maybe you could give Fidelity a call and suggest a ETF for the group.
Rod
Read Answer Asked by Rodney on May 31, 2016
Q: Morning,

CXR having a bit of an off day today. I wonder if you think the recent strength has been based on business fundamentals or speculation of a deal?

Assuming that there is no deal to be found, I think you might still find it a worthy hold as it was recently a 5i top pick on BNN. Is that still the case? What would be the argument in favour of buying more?

If a deal were to occur, within what time frame might it be reasonable to expect?
Read Answer Asked by Tim on May 31, 2016
Q: Good Morning: My question is about the Horizons ETF listed as TXF. (It did not show up in the drop down menu.) The full name is First Asset Tech Giants Covered Call or something like that. I know it is Cdn. hedged which I am fine with and it uses a covered call strategy to optimize returns. Do you have an opinion on this ETF in regard to management fees (they do not seem excessive to me for an actively managed fund), performance, sector and weighting within a portfolio. I don't own a lot of big tech names directly (small holdings in Alphabet, Corning, Intel, Qualcomm and Apple,all of which are in this fund) and wanted some additional exposure in this sector. I already have a small position in this ETF (less than 1%) and would like to double it. Thanks for your input. don
Read Answer Asked by Donald on May 31, 2016
Q: Hi,
There's something I just don't get.

If banks make their money by borrowing short term money (e.g. at .25%) and lending at long term rates (e.g. at 1.75%), then if the short term rates are raised (as is so often spoken about when discussing the FED), and long term rates cannot be controlled by the FED, then why do I constantly hear analysts say that when the FED raises rates it's going to be good for the banks? esp. since I believe such a move would curtail inflation and inflation is not a big threat anyway and as I understand it, long term rates mainly go up in conjunction with the expectation of inflation?
Read Answer Asked by John on May 31, 2016