Investment Q&A

Q: Morning 5i,
Now that the details of the budget have been revealed (and although not a sure thing, assuming that it does survive the upcoming vote) could you identify the 5 names that you think will benefit most from a share appreciation standpoint until the next budget comes along in a year's time, along with your rationale for each.
Thanks 5i, and I look forward to your thoughts.

As a corollary to my recent question about names that will benefit most from the budget, could you also identify those names, if any, that you think might suffer most from the just released budgetary terms? (For example, I heard something about "predatory lenders" being restricted, and I wonder if GSY or PRL might meet the government's definition of predatory lender and, if so, what they are facing as a result.) But also, any other companies in other sectors that you think might face headwinds due to the budget.
Peter

Q: What are your thoughts on the budget and the impact it may have on stocks in general? Is there anything in the budget that will have a specific positive impact on any of your list of growth stocks? If yes, can you indicate which stocks and what might be expected? Defence spending is big but I'm assuming this has been baked into defence based companies already.

Q: Hello 5i Team

If we get a correct in the market would you have concerns with the above stocks. Would they still be a long term hold?
Thanks

Q: Does someone have inside scoop that a poop storm is coming to Canada? Is our PE ratios out of whack with global comparable?...Is widespread selling Canada is beginning?..what gives? Thanks

Q: Everyone, there is a lot of noise of a stock market decline. The stock market will decline, maybe more or less than anticipated, in the short term - it always does. What should you do if the market goes down 5%, or 10% or 20% or more. I have good stocks and don’t plan to sell - just watch and wait. Clayton

Q: Given US and Canadian currencies and markets, what is your recommendation for the purchase of US stocks (ie GOOG) and ETFs (ie QQQ). Would you recommend buying them in Canadian or US currency for a 32 year old who will hold them for an RRSP investment?

thx

Q: I understand that your recommended portfolio allocation is one-third Canadian, one-third US, and one-third International. Could you share a bit more about the reasoning behind this approach?

Specifically, is the one-third Canadian portion meant to help limit the amount of Canadian companies in one’s portfolio, essentially to protect against being overallocated in your home country?

Similarly, if someone was based in the European Union would you recommend one-third EU, one-third US, and one-third International?

Thanks!

Q: Do you have any thoughts on how the Federal budget next week might affect Canadian stocks in general or specific stocks or sectors?

Q: From a technical standpoint, I see that NWC had been within a fairly consistent rising 18-year stock price channel. Roughly May 2024, the price shot above the upper resistance of that channel and has been above that (rising) line ever since.

Question: Do you know of any fundamental change at the company that would justify the elevated stock price since May 2024? Were there some sort of positive changes within the company?

Q: Good Day,

Michael asked a question on Oct 27 re: bubbles, and the financial post article you referenced as the answer is behind a paywall.

 Could you discuss some of your thoughts on what position you see the markets in with respect to a bubble?  I'm not sure if it's just that I've positioned myself (with 5i and the 5i forums' help) so well to capitalize on this years themes, but watching my investment accounts' total value rise like it has seems unsustainable.

Is gold flying because many are thinking the same?  Is it a good time to position for a correction/bear/recession?

Would "positioning defensively" consist of moving weighting to the income portfolio names (if it were you)?  Are there any other names you would add to (Non O&G/Financial, I'm flush there)?  

Thanks for helping us all navigate this wild ride!

James

Q: I am wondering about the Direct indexing strategy: Buying a canadian or US index and harvest the tax loss on declining stocks and replacing them by buying similar company's stocks.

For the last 10 years, could that strategy be worth it? And what would be the optimal dependent variables like loss threshold, tax brackets, etc.?

Thanks as always for your great expertise and services

Q: I'm anticipating a short term market correction. What Canadian listed ETF would you recommend to for an inverse or short position on the TSX as a hedge again a market downturn.

Q: In a world marked by tariffs, volatility, widespread high debt, and a weak Canadian economy, what are the best 11 sector allocations for retired conservative investors? Thank you

Q: Hello 5i, If Trump loses the Supreme court tariff case, how would affect my investments, what would be the short vs long markets behaviors. What would be the best outcome for an investor.
thanks

Q: The plunge in gold on Friday, followed by another today, have coincided with a steep plunge in the TSX on both days. Do we have any idea just how much of the outperformance of the TSX this year is due solely to metals, especially precious metals? Obviously a lot, since the TSX is now underperforming the S&P this month.

Q: Dear Peter:

On surface this looks like a simple and even a "dumb" question. However I am struggling with this question as it impacts on not just my portfolio but almost everyone's!

What is a Bubble? Are there any acceptable definitions of a "Bubble"? Is Bubble a Technical Analysis based concept or a Fundamental Analysis based concept? Do they share any similarities? Is a Bubble applicable to all of the market or is it confined to just one domain? (Gold is in a Bubble but not Silver, not yet) Finally is the definition of a Bubble Static or Dynamic phenomenon? In other words what was a Bubble in 2000/2001 (dot com Bubble) is NOT a Bubble now!(AI phenomenon?)

Financial media gives a lot of opinions filled with "hyperbole"! "Sell now" we are in a Bubble! Others say, "No, wait till Gold hits 6000"!

It is important as one needs to sell or add in a prudent,well thought out and rational manner. Hence this question.
If you think this behooves not an answer but an article, so be it. I will wait! No problems.

Q: Hello Team 5i & Everyone,

Based on the metrics you watch, in your best estimation, do you feel that the US markets are in late cycle?

I’ve seen that there’s a “debate” that we’re either late cycle of this current run since the 2022 lows, or we’ve started a new cycle since the April 2025 low. Time will tell.

Thank you!

Sandra

Q: How do you view the current macro environment with respect to indicators that you follow. With the 20% spike in the VIX, do you view risk as elevated in the near term?

Q: I would be very interested in 5i’s take on this NYT article. I try to stay away from the fear mongering, be wise and buy/hold good companies. I trust 5i after being a member from the beginning, and always come back here for an opinion, because there are too many opinions out there, and a person has to land somewhere or it’s too hard to navigate. I think we can all agree there is a correction coming sometime, and likely it’s necessary, but a 1929 type event? Please offer your ideas. Thanks! https://www.nytimes.com/2025/10/13/magazine/investing-private-equity-crypto-crash-1929.html?smid=nytcore-ios-share&referringSource=articleShare

Q: What is your opinion on the recent statement by the IMF that markets could be headed for a disorderly correction given the current trade wars, increasing government debt, increased geopolitical tension and other risk factors?

Thanks Tim