Investment Q&A

Q: Hi Team,
These Tariff moves have gone from "not a big concern" to a major concern with anyone holding a growth portfolio. Currently I am down 23% from peak in short order since January, due to a higher concentration in Tech names and other growth names. An amazing fall considering I thought I was holding all solid names (such as NVDA. PRL, SHOP, TTD as examples) Do you view this as 2022 all over again? Or do you think the market will bottom sooner than it did in that year? Hard to say I know based on Trump saying that he no longer cares much about the market this go around. A much different tune that last term. However I suppose that could change overnight. I don't imagine Musk in enjoying Tsla's fall; perhaps that will end up in a clash with Trump on trade policies or hopefully talk some sense into him at the very least. Looking for your take on the current situation. Lastly, I assume that since major damage is already done would I be best to just hold the line at this point? Or sell out some growth names even at current levels? If buying new purchases what would be your top 3 names to add to at current levels?

Thanks,
Shane.

Q: Hello Team,
Would this be a reasonable time to convert some C$ to US$, or do you see C$ strengthening anytime soon?
Thank You,
Barry

Q: For an investor with a higher than average risk tolerance, what percent of their portfolio would you suggest be in Canadian, US, European and Asian equities/etfs? thanks, J

Q: Hello, given the Trump-induced turmoil in the economy/markets south of the border, how do you see the IJR ETF perform in the next 12 months? How are small businesses impacted by what is going on? Are Trump tariffs positive for them? Thanks

Q: Is this what he planned ? Town Halls across America are reacting negatively towards President Trump. Concern about Inflation and Jobs and lower value on their investments . Their net worth.
Elon taking a hit on Tesla Shares,
People will not buy a Tesla,
Premier Ford 25 % tariff on Electricity NY Michigan and Minnesota will hurt.

No American Booze for sale in Canada,

30,000,000 Canadian trips a year to USA

Vacations are being cancelled to USA,

Does not look good for American Economy. Will President Trump drop his Tariffs on Canada all together and admit he was wrong.

I don't think so. What do you all think he will do ?

RAK

Q: I’ve been reading a lot about the decline of the American empire. If on the horizon how does one prepare for this?

Going forward what would you recommend for a Canada, US, International investment ratio in a portfolio?


Thanks

Q: What is going on in the Canadian and US stock markets today...March 6th, 2025?.....Thanks for your insights!!!.....Tom

Q: Hi,

Can you explain the drop in the USD yesterday? Seems like a larger than normal move and certainly of a size that makes one sit up an notice in a portfolio with USD holdings. Would you advise exchanging USD back to Cdn dollars at this time? Assume this is cash and not specific holdings.
Thanks!

Q: Hi All at 5i!
Every dark cloud has a silver lining. So, considering Trump‘s insane tariffs and their effects, there will be people making money. What investments, stocks or otherwise, might see a growth in business??
Cheers,
Tamara

Q: Hello 5i, on a scale of 1-10, 1= little tariff impact, 10= big tariff impact, stay away from, how would you rate these 2 companies?
In addition is there a Sector like Metals and Minerals that you would give a favourable ranking to? Thanks as always. Chris

Q: Hi 5i, in your response to Julie's question today on the economy can you provide key VIX and market levels, bond and stock, that would get you excited to deploy capital? Thx.

Q: Now that tariffs are here, and Trump is playing hardball with Ukraine and the world, can you provide thoughts on what you think the markets, US and Canadian separately, will do? How far percentage wise might each drop? Looking for time horizons of up to 3 months, a year and then beyond. Realize this is new territory but 5i should have opinions.

Q: Hi, could you list your 5-6 favourite sectors today. Also just wondering, do you see any signs of a sector rotation anytime soon? Or is it too hard to predict? Just checking cause Technology seems to have had a long and positive run, while Oil&Gas seems to have lagged for quite some time? ( I could be mistaken).
It seems to me when a sector falls out of favour it sometimes takes a long time to recover?

Q: Could you speak to the issue of how Canadian investors should respond to proposed tariffs by the Trump administration before March 4th and after March 4th, assuming tariffs are implemented. Please give an example of the type of companies you would sell and buy? Thanks

Q: How long do you expect them to last. Americans are upset, Also all the firings that are taking place, I understand PAY DOWN the HUGE US DEBT is a good idea Canada should start to pay down their debt as well,

These moves will cause Republicans to loose seats in 2 years time next Election. RAK

Q: Hi 5i,
I am usually not one to panic when it comes to investing but the steep and sharp decline of the stock market this morning (Thank you Trump) has me very concerned. Is this a time to sell stocks with any gains left or just sit tight and ride it out.

Q: "These five factors, if they become pervasive, could result in the U.S. economy going from super strong to mixed to weak or even really weak in a very short period of time, depending on how things play out. This is likely what caused all the investor concern over the past two weeks, and without some better clarity from Washington (which seems highly unlikely), investors may want to temper their expectations for a big market rally this year."

I liked your article. Would you say this is an expansion of the message that Warren Buffet has been making to the government? Also, you say that maybe we shouldn't expect a stockmarket expansion. But, I notice that a lot of investors seem to be sitting this inning out, as well, waiting to see what happens. Are you favourable to this option under current conditions?
thanks for your great company

Q: This may be a challenge to the usual 5i analysis.

According to reports the so-called “ Mar-a Lago Accord” seeks to have the Treasury only issue zero interest rate 100 year bonds, and they would force allies and trading partners to buy those bonds. The intention is to reduce interest rates and thereby help the fiscal deficit and reduce the value of the dollar ( the joke of course is that Trump also wants a strong dollar and threatens countries that try to settle in anything but the US$).

I have to roll my eyes at this nonsense. Cash is a zero interest perpetual bond. Basically they want bond owners to hold cash. If they want that ,they should simply stop issuing Treasury bonds. Of course if they did that they would rip the clothes off the emperor.

In the context of MAGA thinking this is an attack on Fed Independence, however it is also inflationary in the way Q.E. was inflationary (asset inflation).

I have to give the Republicans credit for coming up with yet another novel way to enrich those of us living off our capital.

As subscribers to 5i Research we will need advice on how best to take advantage of this new investing ecosystem? Over to you 5i!

Q: Based on the current market situation, what level of cash would be apropriate to have ?, and if wait and see it is the best approach now , what is the best parking place for cash ?

Q: I have decided to orientate my portfolio more towards the US, while keeping approximately 30% Canadian. I am also looking at India for my first international investment. Most of these stocks are asset light and large cap.
In the US the sectors are non bank financials, tech, and industrials. In Canada I have chosen large caps with significant non Canada revenue.
My dividend income would decrease but I can handle that. This would be an equal weight portfolio.

What do you think of this approach and of the individual stocks?
Should I just buy an SPY 500 etf for the US ?
Is FFH appropriate for India or is there an ETF you would recommend ?
Thanks .Derek