Investment Q&A

Q: Hi 5i,
In registered accounts I hold these financials: POW, BNS, CM, EQB, PRL; these tech: TXF.B, HTA and the industrial MDA. I've held them for a long time and I'm pleased with all of them.
However, given Trump may be serious about decimating the Canadian economy (witness latest threatened increase in steel and aluminum tariffs) and likely can do a lot of damage even if he doesn't completely succeed, I'm considering cashing in holdings in Canadian names and replacing with US names through purchasing CDR's (I don't have a US account and don't plan on opening one). A few of questions arise:
1. Do you think my reasoning makes sense, or would it be an over-reaction to make the move regarding all or some of my above holdings?
2. If the move is worth considering, can you suggest CDR alternatives for any of the above names you think should be replaced?
3. If I do replace any of the above CDN names with equivalent or nearly so CDR's, what can I expect regarding dividend income compared to that from the CDN holdings (all of which - except MDA - are currently yielding based high, based on long ago purchase prices)?
Please deduct as you see fit.
Thanks 5i,
Peter

Q: this breaking news from last night caught my attention - tRUMP does not have authority to impose sweeping tariffs against Canada and other countries, rules U.S. court
what will be the outcome of this for the US stock market???
but the US Supreme Court could over rule this over turn the lower court ruling as the majority on the Supreme Court favour tRUMP
Is it a time to but US stocks???.......thanks for your insights ...Tom

Q: Peter; Having owned RUS for multi years I am reluctant to sell - huge cap. gain. But the Trumpaffoon’s jump to 50% is a little unnerving . Will this damage RUS’s earning badly - sit it out ? Thanks,
Rod

Q: Would I be correct in concluding that Trump's on again off again tariffs are good for covered call ETF's ? When he announces a tariff the market takes a dive. When he backs off the market rises ..... Under those conditions can not the call writers charge a higher premium ? I've noticed GDXY yielding 43% was at 52.9% the previous month. And SLVO is yielding 23.2% . Even the US treasury ETF HPYT is yielding 20% .....Even boring old UMAX a utility covered call ETF is yielding a hair under 16% ..... Do you see a relationship between the amount of the premiums covered call ETF's can get to " Yeah I'm going to tariff the snot out of you " to " Nah, i was just kidding " ..... market swings ?
Basically I'm wondering if Trump is the perfect storm for options .....

Q: Dear Peter et al:

It is not Rocket science that Trump's not so cryptic messages on Social Media create wide fluctuations in the market. Today it centered around EU. It could be about Japan tomorrow. Who knows?!

My question is: Are these wild fluctuations in the market caused by retail investors or Institutional investors. In other words, who exhibits "herd behavior", retail or institutional investors?! Do you see any specific pattern, especially in specific sectors?
In one of your recent answers, you had warned to be cautious about Discretionary sector. Hence this question.

Q: Do you know is there a time line for their recent share offering,price is unknown,it would be nice to know how much longer we have to wait for some clarity on this issue.
Also with Bitcoin hitting all time highs and the trump family at the crypto trough ,do both of these currencies help GLXY or is one better than the other BTC or crypto…Thanks

Q: I hold a full position of KKR which share price has fallen significantly from the January high. I am unable to find the fundamental reasons for the price weakness and started to doubt my original reason to own the stock.
Please kindly advise if I should continue to hold or sell for tax loss harvesting. Thank you for your great service. Bill.

Q: Hello 5i,
I have read the Q&A around the proposed u.s. tax changes and am unclear as to whether or not holdings within registered plans (LIFs, RRIF's, RRSP's, RESP's(?)) are impacted, or if they retain their current, somewhat protected, status. I am assuming - perhaps completely incorrectly - that the questions asked have been referring to non-registered investments, but that - knowing Trump, registered plans will take the hit as well?
One thought would be - upon finalization of the bill, in whatever end form it finally takes - for 5i to write a report on the impact to Canadian investors once the dust has settled and the ramifications are known.
Many thanks, as always!!!
Cheers,
Mike

Q: The impending big ugly Republican bill is supposed to increase the witholding taxes for Canadians, on certain companies.

According to the Globe ("Trump’s new bill threatens major tax increases for Canadian companies", by Clare O’Hara and Rudy Mezzetta, May 22, 2025), this would include, "Canadian corporations that receive dividends from U.S. subsidiaries" and "Canadian individuals who own U.S. securities directly". This tax would rise to 50 percent from 5% and 15% respectively.
Though I do not depend on dividend income, I do own a couple of securities which I am wondering about:

Brookfield Corp: A company based in Canada but which is trying to become based in the US. Though this has a small USD yield, would it be affected?

Purpose US Cash High Interest ETF: This pays interest in USD on USD but is a Canadian company. Would this interest be affected by this bill?

Can you name some companies in particular that would be hit hard by this?

Lastly, I wonder if our pension plans, like CPP, HOOPP, etc would be affected significantly and how would they respond? Any insight on that?

Thanks as always.

Q: There is an article in today's G&M "trump's new bill threatens major tax increases for Canadian companies". Could you comment generally on how this may play out in various ways and sectors. And specifically to PRL, SLF, BAM, CSU, CLS and ENB.
Thank You and please deduct accordingly.
Tim

Q: Hello 5i,

With the USA facing a Trumponomic meltdown, do see an advantage of purchasing CDR's for US stocks today?

What is the recommended % of a portfolio for Canada, USA, Europe, International, and Emerging markets. It looks like a little more global diversity may temporarily dent impacts from USA rhetoric and threats.

Thank you
D&J

Q: BEP hit an air pocket today may 22nd with a drop of 4.5% at the time of writing. The only thing I found that could explain it is Trump's "Big and beautiful" tax bill that, it seams, cancels the clean energy incentives. Do you think the drop is warranted or is it mostly a Mr. Market knee-jerk reaction? -- It seams to me BEP's international diversification should have cushioned the incentives cancelation.

Q: Dear 5i
I have considerable cash yet in my portfolio and have been doing some buying of late , easing back into the market .
I feel that the worst is likely over but with Trump and his tariffs how can you know for sure . My one concern still is not ,so much what additional tariffs could be added but what will be the near future effects of the current tariffs that are in place . Even with no additional tariffs the ones currently in place once in effect are likely to cause increased inflation , higher prices , higher unemployment and the potential for perhaps a mild recession . That said , is it wise to be buying a whole lot now and be mostly invested or would it be prudent to be maintaining steady buying , regardless of the potential for the negative consequences of the tariffs once they take effect ?
Thanks
Bill C

Q: ATRL hit a new high yesterday because they somewhat exceeded expectations and growth is forecast. Have your thoughts on ATRL changed? Certainly the company still has some legacy problem projects / debts but they seem to be resolving them. There appears to be growth, relating to CANDU nuclear reactor refurbishment inside Canada and new reactors in located in Romania. Romania is a member of the European Union but there is governance instability with the leading candidate being described as anti EU, anti NATO, Moscow (& Trump) friendly etc.

I have owned WSP for over 10 years now so I am well ahead but my weighting is still reasonable so I'm not looking to sell. I also have my doubts about ATRL but it is undeniable that the stock has positive momentum now so it is of interest to me to broaden out my construction engineering basket. ATRL is doing better but it is going to require continued strength in CANDU nuclear work to stay successful. I don't think the government of Canada will pull the plug on ATRL, the engineering talent is already inside ATRL but Romania maybe is a wild card.

Any thoughts you have would be appreciated.

Q: Seems more and more Trump is trying to muscle in on the decision making of US companies especially Large ones. i.e. telling Apple to reduce footprint in India n threatening Mattel CEO when he suggested its unlikely to manufacture toys in the US.

We are into this only a few months n there is no certainty the power base will change any time soon.

So far seems the best performance continues to be with the larger companies and frankly he has been helpful to some like Boeing but do I need to start making investment decisions more strategically trying to sidestep areas where the Gov’t is likely to have an ability to impact the decision making of my investments?

Areas like Gov’t plan to reduce drug pricing have really drove down Drug stocks. Will the midterm impact of Trump trying to micromanage larger companies create opportunity for mid caps which may sidestep Trumps ire?

Craig



Have we ever had a

Q: Trump’s pro-U.S. policies (tariffs, tax cuts, deregulation) are driving U.S. market growth. What would the best US dollar etf's be to take advantage of this growth. This will be held in a unregistered account. TY!

Derek

Q: After a year of relaxing, NXT finally made it back over US$60 this week. What are your thoughts on this company? Hold for future growth or sell due to Trump's ambivalence toward renewable energy? Thanks.

Q: Good Afternoon Team 5i,

Are you watching the US30Y? I’ve heard that the Trump administration blinked on tariffs initially when it hit 5%, (and the bond market is the more important market to watch this presidency.) Thus, if the US30Y gets up to 5% again this is something to keep an eye on and watch how the market reacts.

Do you feel this narrative potentially holds some truth? If so, would you please explain why the administration would want to keep the US30Y below 5% please?

Thank you.

Q: Given that the US$ has fallen lately and Trump would like it to fall further in value against other currencies, would you consider it wise to take some US$ profits off the table?

Thank you,
Mike

Q: VHT is hitting some lows, being effected by UNH which is a 4.7% position of the fund. Do you see upside from here, or is it a cautionary sector right now? How do you see the sector going forward? Thinking of stepping in as my healthcare part of portfolio is low. Thanks.