Investment Q&A

Q: Hello 5i Team, Happy New Year! I have a diversified portfolio with plenty of tech exposure and S&P. We are looking into Sector based ETFs. Based on this environment, which one would you recommend out of these - XAD, HBGD, TECI, CHIPS, TEC, XEXP, FOUR, RBOT. Or, would you recommend any other sector ETF?

As always, thanks for your valuable insights.

Best, AJ

Q: Good morning 5i,

I'm expecting some turbulence coming for sure. I doubt all is priced in with the tariff battle. Of course nobody knows. But opportunity may be knocking.

I refreshed myself on Peter's cover call write up from years past. I'd love a new take on selling covered calls to enhance your income and some strategies relating to it. ie, OTM, time frame etc.

And some top stocks in your view for writing on. Excluding NVDA, already sell OTC cc on my position.

Thank you very much.

Q: Can you please help me understand why these two names are underperforming while the BOC is easing interest rates? I hold both names in my unregistered account. Please rate them as buy, sell, or hold for a 3- to 5-year holding period

Q: Any reason for Etherum [ETF] drop close to 20% on monday?

Q: As one of 5i’s early subscribers, I find it a useful thought experiment to give my answer to a question before clicking on the 5i answer. I have found over the years our answers converge and so I rarely send in questions and comments. However my sense is that DeepSeek is a significant change.

On one level it is a clear lesson in the reality that, as Keynes said many decades ago, it’s real resources that matter, not money.

The American approach to AI development was that if you don’t have a $1billion you're not in the game. The Chinese have shown that if you have the pool of talent, amazing things can be done with relatively little money. The prevailing narrative that the Chinese are just copy cats was also blown out of the water. DeepSeek not only upends every assumption underlying the American approach to AI, it shows that the Chinese can out Silicon Silicon Valley and that means that, unlike in the past, China’s most talented minds will want to work for Chinese companies not American ones.

How will the Americans respond? Having staked political capital on the $500 billion Stargate, Trump and his entourage of billionaires have no choice, they will double down. We are hearing the narrative already, they are now saying that $500 million invested in DeepSeek’s advancements will produce even more amazing advancements in AI.

At a moment in history, as America consumes itself, China has taken a leap forward. Not only have they bloodied Trump, they have shaken the world in ways Napoleon could never have foreseen.

There are actually lessons to be learned in how Canada might deal with Trump but the political bobble heads and corporate Canada have actually come to believe the myths of neo-liberalism they started purveying in the 80’s, and are now incapable of rising above their paralysing fear.

Every investor has to ask, what are the implications of DeepSeek for their investments? Doubling down by the Americans will keep the party going for a while but it seems reasonable to expect a reckoning. Where would 5i look for alternatives to AI investments? Please suggest 5 US and 5 Cdn stocks that have strong balance sheets and reasonable growth prospects (without stretched valuations) that would benefit from using much less expensive AI? Also, please suggest a couple of ETF’s for Europe and China that would benefit should those markets surprise to the upside?
Mike

Q: Hi, I - along with many other Canadians I'm sure, have been watching the USD climb. It looks to be heading back up to test the recent all time highs, and I am wondering if you could shed light on how the value of the USD will affect the market. As well as if there is a tipping point, at which the value also starts to hurt the US economy, etc. My limited understanding is that if the USD climbs, stocks go down. Your thoughts on this would be appreciated! Thanks!

Q: This ETF seems to have a long/short strategy of low volatility. 2 questions please:

1. including dividends are they keeping up with the the TSX index total return since inception?
2. is there a guaranteed market maker to keep the shares of PFMN.TO in line with its NAV or is it possible a premium or discount could happen in the future?

thanks

Q: I'm holding on to ELF in my TFSA but I'm getting very discouraged. Can you give me an update of your opinion on this stock today and going forward please and thank you.

Q: Can you provide on the potential of this cyber security company which is in the early innings of development but has recently signed a contract with Verizon and Vodofone.
Thank you.

Q: Hi 5i,
I recently sold Fresh DelMonte Produce/FDP after a nice run up. Apart from Nutrien/NTR I have no other agricultural related stock or ETF.
Could you recommend one or two options (either stock, ETF or both) as a good replacement?
Have to say, bit of a confusing world at the moment?
Much appreciated.
Ralph

Q: Good day,

For exposure to gold, I'm looking at getting into an ETF or two. Would you suggest both a gold bullion ETF and a gold producers ETF or would they move in tandem and only one is needed?

Can you recommend some gold ETFs?

Thanks,
Robert

Q: In the event that the USD reverses course and starts to become even moderately devalued (e.g. BRICS decides to actually develop an alternative trading currency system that by-passes the USD), how should Canadian investors strategize and position themselves within the various asset classes?

Q: How do you see the Canadian bank stocks doing in the present interest rate and political environment?

Q: Hello
two part question. First, If you were to choose between CM ot TD . Which one would you prefer? Is there a better bank you prefer? TD has a higher yield and has exposure to US markets
Secondly, do you think Financials will be hit further. . If so, do we stay put ?

Q: Hi - what would be your general stance on REITS in Canada right now. They have taken a decent hit today on the tariff news. Are they oversold? Bottom line, and I know it's a broad question that is hard to answer specifically but would you buy, hold, sell Cdn REIT sector?

Q: Of these two which would have the safer dividend and some growth for a retired senior longer term ?

Q: Good morning. In your report this morning you outlined TOU as an addition to the Income Portfolio with a yield of 5.8%. The yeild is more like 2.1%, is'nt it?

Q: Is CP and/or TFII a sell right now with the pending tariff discussions? What do you think about these holdings in the current environment?

Q: What other ex north america etf's would be good?

Thanks

Q: I wondered what Trump would do to support the market, and now we have it.
A sovereign wealth fund!
A ludicrous idea for the U.S. which is not only a currency issuing government, it is also the reserve currency.
However, a deep pocketed buyer of U.S stocks will inevitably push p/e's higher.
While the insanity grows, we might as well make some money.
Hopefully Ryan speaks to the potential impact of this for investors in his webinar tomorrow.
Mike