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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: What is your opinion on investing in Tesla at this time. It's pulled back considerably of late. Is this just the tracking of the price of oil, or are there other underlying issues? Your insight is most helpful.
Read Answer Asked by Marco on February 02, 2015
Q: Good morning,
What are your thoughts on ZID or some other India ETF or mutual fund for added global exposure in my grand chldren's RESP? The twins are only four years old and other holdings in the RESP are CDZ (33%), MAW 104 (26%)and MAW150 (26%). I've just sold ZRE (13%)and was thinking of replacing this with ZID which I recognize adds more risk to the portfolio, but may well continue go higher given India's long term growth potential. I currently hold ZID in my own personal non reg acct and although it has done well, I was wondering if this ETF was suitable for a RESP or should I opt for a more global ETF or mutual fund. Thank you.
Read Answer Asked by Francesco on February 02, 2015
Q: Hi gang : I am thinking of adding RC or CCT (22%) to my TFSA account. Currently holding IPL, TOU, OTC. Would this a good add or do you have a better suggestion for growth
Read Answer Asked by John on February 02, 2015
Q: Good morning
How does 2015 look for Reits in general and what would be your top 3 choices? Thanks
Read Answer Asked by Michael on February 02, 2015
Q: Good morning 5i team,
In december i sold surge energy for a cap loss and bought Whitecap to replace it. It is now time to buy Surge back again but i have been leaning towards keeping Whitecap instead. Am i right in thinking that you seem to show more confidence in Whitecap than Surge?
Thanks
Read Answer Asked by joseph on February 02, 2015
Q: I set up a 5 year preffered ladder on the advice of a local adviser. Most of these investments are rate reset types. This ladder is has lost me a lot of money. I note that I'm not the only one in this sinking boat. My question is straight forward. Do I hold these shares or sell them?
Read Answer Asked by Les on February 02, 2015
Q: Hello 5i,
The yield curve is flattening; the spread between 2 and 10 year is dangerously narrowing. This kind of situation, if it continues flattening, could be a precursor of market downturn as it happened in 2000 and 2008.
I was all in cash in 2008 and am wondering how to respond now; mind you there is always a lag time between the flattening of the yield curve and the market decline.
Your opinion please.
Tony
Read Answer Asked by Antoine on February 02, 2015
Q: At today's prices, bam.a or byd.un?
Thank you for your excellent service.
Read Answer Asked by Margaret on February 02, 2015
Q: what is going on with this stock?is this company going down the tubes.its my worst investment ever.
Did you talk to management lately?if not would you please do this
Thanks
Read Answer Asked by Josh on February 02, 2015
Q: Hi Folks,

Thanks for your great work!
I don't want to abandon the energy space completely as it will bounce back. I'm thinking of sticking with PPY and DEE while waiting for the turn - naturally I'm down a lot in both. They probably won't disappear and could experience a quick and substantial rebound when energy comes back. I'm a long term investor with a balanced portfolio. What do you think of this strategy and these two companies?

Read Answer Asked by Dennis on February 02, 2015
Q: Hello Peter:

I decided to buy a small quantity (200 shares) of the HOD ETF to hedge a bit against my oil stock holdings (Ithaca, Iona, Surge and Freeport McMoran). It fell hard yesterday with the news of the 8% cut in drilling rigs on the continental US. I am still expecting the oil price to fall further between now and the next OPEC meeting on June 5th.

My strategy is that I will use the gain that I will get in HOD to eventually buy more of my oil stocks when the oil market turns around. If OPEC in June does not cut their production then the oil price will fall much further before it bounces back. The U.S. inventories have gone up in the last two weeks at unbelievable levels - 10.7M two weeks ago and 8.2M last week. The reduction in rigs will not have a quick effect on the U.S. daily production numbers for at least 6 months. I believe yesterday's bump inthe oil price is a bit of an over reaction and will go down again next week when the inventory numbers come out for last week.

When you look at the HOD it states that it is a daily calculation based on the WTI price. How does the ETF actually work because it has increased more than the stated 2 times the drop in oil price? If my hedge is wrong I will still be very happy because my oil stocks will go up instead. I am banking on a increase in the oil price 2 to 3 years from now so I am not concerned about this blip but would like to hedge a little bit right now to make some money on the downside trend. What is your opinion of this strategy?

Thanks,

Brendan
Read Answer Asked by Brendan on February 02, 2015
Q: Boyd Automotive is a canadian company, but the majority of their business is done in the USA. With the Canadian dollar sinking fast and the US dollar rising, does that mean that Boyd's profits will be enhanced as they receive money in the stronger currancy? I'm thinking the improving US economy should also be good for Boyd?
Read Answer Asked by John on February 02, 2015
Q: The stock has plummeted and management has been given the boot by the debt holders (albeit not until original management made out like lottery winners).
Do you know anything about new management and whether it is at all possible to turn this baby around. Would a commodity (gold, uranium) reversal of fortune help at all?
Read Answer Asked by richard on February 02, 2015
Q: Do you believe Avo has broken out of it's recent trading range with it's close on Friday? I maybe watching it too closely as it went through a key price gap at $18.93, just missed $19.60 and I think the next price gap is $ 24.89. I want to add on the way up to the momentum!
Read Answer Asked by Tom on February 02, 2015
Q: For a couple in their late 70s, what what would you recommend for our TSFA. So far we have contributed every year and bought GICs, (2%) with the thought rates would soon be higher. The opposite has happened. What would you suggest we do now?
We don't need the money, but would like to keep it safe. Otherwise we have a diversified portfolio of your income, and some of the model portfolio. Any advice you have would be appreciated. Cheers!
Read Answer Asked by Shirley on February 02, 2015
Q: Mcard or Visa, which of the two would you pick? Is it a good time to take a position? Thanks for your opinion.
Read Answer Asked by Charles on February 02, 2015
Q: 1/30/15 - Oil had a big move up of $3.75. Most oil stocks moved up with the oil move - example - SGY up 10.3% - 3 stocks you support ROCK, PRW and QST moved down. Any explanation why didn't participate in the rally?

Dennis
Read Answer Asked by Dennis on February 02, 2015
Q: In my last question to you I said that I was over-weight in financials due to the drop in prices of oil stocks. My holdings are AD 14.51%,Counsel 3.14%, DH Corp. 34.6%, EFN 11.77%,Fiera 5.4%, Gluskin GS 12.23% and HCG 18.30. I just bought HCG in the last week of Jan as it was down. Counsel was just a flyer. DH I bought at $18.40 in Apr 2012. I would like to trim something and would like your suggestion. Olso pls keep in mind that I intend to add to my portfolio in Feb so that will also lessen the weight of the financials. Thanks in advance. Gary
Read Answer Asked by Gary on February 02, 2015
Q: For a long term hold (> 5yrs) which has the best long term potential, ABX, FM, TCK.B, G, AEM. What other materials stock has good long term potential?
Read Answer Asked by Rob on February 02, 2015