Just like hiking, investing is much funnier with a buddy by your side to help you stay the course. Today, we use Mike’s hiking buddy talent to answer the most frequently asked questions investors have.
Selling stocks at a loss? Protection against inflation? Another tech bubble ahead? DRIPs? Using stop sells? These are all questions answered… and much more!
- Mike’s thoughts on Canadian Banks’ most recent earnings.
- Why Sylogist has been losing.
- Why are utilities going down when they should thrive with the pandemic.
- Should you hold preferred shares in a cash reserve at retirement.
- Mike’s opinion on mutual funds and ETFs.
- Why selling your winners or should you sell weak stocks at a loss.
- Should Canadian investors convert their currency before buying U.S. stocks and how can they benefit from strong Canadian money.
- Is low growth considered as an absence of growth in the dividend triangle.
- What’s going on with InterPipeline, Brookfield Infrastructure and Pembina?
As promised, here are a few links that would greatly complement the content of this episode.
What’s the Norbert’s Gambit Strategy?
A financial advisor named Norbert Schlenker from Libra Investment Management, a B.C. investment firm found a solution for his clients. According to the online “legend”, this creative advisor established a strategy to skip the middleman and not pay conversion fees. Here’s how it works:
Some companies trade on both Canadian and U.S. stock markets. You can think of Canadian Banks for example. Therefore, if you purchase shares of Royal Bank (RY.TO) through your online brokerage account, you can then call your broker and ask him to journal (transfer) the shares over to the same listing in the foreign currency, at the market exchange rate, and then sell the shares in the currency you want to end up with.
This strategy would convert money invested in the Canadian dollar in Royal Bank shares into U.S. dollars once you sold the same shares on the U.S. markets. The only fee paid would be the one charged on the buy and sell transactions. Depending on the amount converted, the transaction fee would be minimal.
In the podcast, I’ve discussed how to use Horizons US Dollar Currency ETF (DLR and DLR.U) to convert your currency. This is the one I personally use on a regular basis.
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