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  5. MISC: What would be your recommendations if one is looking for ''safety'' both in Canada and US markets. [Miscellaneous]
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Q: What would be your recommendations if one is looking for ''safety'' both in Canada and US markets.? Am anticipating important correction.
Please deduct as needed
Tks
Sherrill

Asked by Sherrill on November 18, 2025
5i Research Answer:

It depends a bit on what one means by safety. If it is just less volatile stocks, or more cash like assets, or something in between. We think the best approach is keeping a diversified portfolio across assets (stocks, fixed income), geographies, and sectors and even styles (growth/value/momentum). This helps create a bit of safety in a portfolio in that something should be working at all times in a portfolio. This also gives flexibility where an investor can rebalance from things that have been working into those that are not, taking advantage of corrections in certain areas. Fixed income and cash would be the first area we would look at for safety. On the equities side, we think consumer staples and gold equities would be reasonable places to 'hide' if waiting for a further market pullback.