Investment Q&A

Q: Hello, with the overall stock market reflecting a historically high valuation I would like to rotate some of my profits into a few safer names, ideally with relatively lower down-side risk and/or that pays a healthy dividend so I can receive some income in he interim. I appreciate that trying to time the market carries its own risks i.e. it could take a while. What names would you recommend?

Q: I have owned GSY for a good number of years and it has been very profitable over the long term. The share price turned negative at the end of July 2024, with a bigger set back in mid October. Many analysts have a positive outlook, though Morningstar has a price target of $152 (about 10% below its current share price) and CFRA recommends selling. The CEO is on his way out. Its last earnings results seemed quite strong, yet the share price continued to decline, and forward estimates seem to be lower.

While my patience is being tested, I am mindful you have observed that one should assess a stock's performance over the long term ie over a number of years, not just a couple of quarters.

But everything is relative....is there a better place for my investment dollars, or would you hang in? Do you see any catalyst that will turn this ship around?

Many thanks for your excellent service.

Q: In my account today PRN has been indicated as Trading Halted. Do you have any insight on this or is it a brokerage mistake?

Thank you, Mike

Q: Today I asked the following question

"I am looking at hedged ETF's and specifically VSP. I was interested to see how well the ETF tracked the index and found that over a 5 year time frame - it underperformed by about 11%. (Total return for VSP is 81.0% and SPX is 93.33% - The Vanguard US ETF - VOO tracks SPX almost exactly.) I am assuming that this underperformance is because the hedging strategy is not perfect?? .......or does the 11% difference represent the cost of hedging?? Also - would other hedged ETF's have similar comparisons?? Thanks"

The answer

"The performance difference is not that the hedge doesn't work, it is because it does. VSP takes away the currency impact. The Canadian dollar has been quite weak over the time period noted, so VSP has not benefitted from the rise of the US$ vs the C$. "

This answer makes no sense.
If VSP takes away the currency impact - the returns should match the S&P 500 Index ....that is the whole point of hedging - but its 11% off - that is the question. It is either because the hedging strategy is not effective or its due to the cost of the hedge.


The unhedged equivalent Vanguard Canada ETF VFV outperforms the S&P 500 index as you would expect due to the weaking CAD........because it is unhedged....which makes sense.

Q: I hold CSH and CRR. The later being a very small position (1%) I'm looking to consolidate. Could you rank these 3 or do you have a better REIT to suggest?
Thanks

Q: What is your opinion of this ETF. Would you consider it a buy at its current price. If not do you have any other reconmendations

Q: Any idea why Sentinel one dropped 13% today

Q: Hi, just looking at CPX, (unbelievable). I missed out on this one , not my first or last miss, but was wondering if you could provide two or three recommendations that are geared towards the electrification boom that is here or coming. (I already have HPS.A) or is CPX still the one to buy?
Thanks

Q: Hello 5i, Could you comment on the reason there is a 7% increase in the share price of CPX today.

Q: Retired, dividend-income investor. Long, long term holder of BCE in my wife's cash account. Sold it in mid-Nov, captured a $12k cap loss, and plan to buy it back next week....prior to the ex-dividend date.

I am ok buying it at the roughly $38 level, even if it floats around that level for the short to medium term. I understand that there might even be some further downside risk. I plan to buy around 1400 shares, either in one shot or maybe 2-3 tranches.

Your opinion on which makes more sense in this case? Multiple purchases is the more conservative way to go, but one shot gets the full dividend back (and more) to where we were a month ago. The BCE board has said they would not touch the dividend for now....although their credibility has taken a hit lately. We are ok with "some" volatility. It's almost a "flip a coin" decision.

Thanks for your help...Steve

Q: Hello 5i
SOUNDHOUND is up 230’ish % since the last question was asked on July 2/24. Can you please give an updated opinion? Is it all hype and no substance or starting to get traction?
Thank you
Dave

Q: Hi Team
If you want to invest in Physical Precious Metal ETF US & Can
Your best choices 3 ETS in Can & Us ?
Thanks
Best Regards

Q: Just curious as to whether you have any insight on the slide of over 6% in the last 7 days? Last news I can see was the 19th, and seemed positive.
Thanks!
Paul

Q: Regarding my previous question on Dec. 2nd. I want to make sure I understand clearly so would you please elaborate on what is meant by ¨we think a broadening out of market cap exposure (a little bit) into VTI makes some sense.¨? Thank you.

Q: Read your report on earnings this morning . Just wondering if you learned anything interesting on the conference call ? Thanks for your terrific service ......

Q: Hello Team, It seems to me from reading the odd comment that you are not very keen on buying the TSX hedged US securities in their Canadian listing and currency and prefer to buy the corresponding security on US exchanges in their original US listing and currency. Can you please explain the reason? Thank you.

Q: hello 5i:
can I get an updated opinion on NICE? Has your opinion on this company changed? Would a price of 175 be more interesting?
thanks
Paul L

Q: I have owned an HISA ETF for a couple of months now - in this case UCSH.U. I had assumed these ETF types to be quite safe but am surprisingly already down 0.21% in a very short period of time. What are the dynamics that make this ETF go up or down in value over time ?

Q: I currently own HXY in my RRIF account and have been in a lost position for quite some time. It is a 8% holding in my RRIF. If I decide to sell what would you replace this ETF with?

Q: What have they done that has the Feds are looking at them . This caused the shares to drop $ 7.00 today,

Should I buy it RAK