Investment Q&A

Q: Kraken seems like a very interesting company but I am worried about it's vulnerability to intensified 'buy American' policies, and Trump tariffs. Does it have a moat that could help it deal with these? What is your assessment of overall risk?

Q: Good Morning 5i Team,

Retired income investor. Current funds generated keep my wife and I comfortable.
Will be inheriting a large sum in very near future. With ongoing Trump issues should I hold monies in reserve; dollar cost average or go all in.. Are we going to see a major downturn which would provide buying opportunities Your thoughts and insights on how to proceed would be most appreciated.

Q: If Mark Carney becomes the next PM of Canada, would you expect a bump in share price for BN or BAM (similar to how TSLA rose after Trump's election win)?

Q: We never owned any Gold companies, but, looks like, some exposure is warranted, given a so much uncertainty, as a result of constantly changing rhetoric of Mr Trump and Trade/Tariffs tensions.

Do you agree ?

Is Agnico Eagle a decent name for the sector and would you be comfortable starting a new position in Agnico Eagle, after Today's drop ?

Thank You

Q: In a recent response, you mentioned that under the Trump administration the industrial sector is likely to suffer. Can you please explain why. Thank you!

Q: Hi, my respected 5i team
What is your perspective about bitcoin with it's possiblity to become the US federal reserve under Trump admisnistration? How much likely it will become US federal reserve?
How many % of Bitcoin to allocate in a portfolio you suggest?
How to invest in Bitcoin in Canada? Are there any ETF's that I can purchase? Any risks with them?

Q: For now, investors seem to have decided to fade the chaos of Trumpenomics. However, one has to wonder how long the massive contradictions will be ignored.
Scott Bessent (Treasury), the man who wrote the report that identified the contradictions in the UK economy that made George Soros $billions, certainly must see the dangers, and yet, he is the source of one of the major contradictions, when he says the Fed shouldn’t lower rates while Trump demands the opposite.

Is Fed independence under attack and how will investors read this?

Are tariffs, as claimed, for revenue or to reduce imports? They can’t be both.
But if the tax cuts are to be permanent, $3 trillion in revenue has to be found somewhere.

Will Trump let a gnat like the Parliamentarian, or the Chairman of the Federal Reserve, stand in his way?

If, at some point, investors focus on the issues around tariffs-as-revenue, or threats to Fed independence they may begin to worry, and decide to sell equities.

The cost to hedge against such an event would be prohibitively expense given one wouldn’t know whether or when it would occur.

I’m sure 5i is considering these issues, but here is what I am pondering. How does an investor with a large equity portfolio manage this kind of risk? Would growth stocks be hardest hit? Are etfs better than individual stocks? What defensive stocks are likely least affected? Are there equities that would do well in such a scenario? How would bonds perform?

Q: In your response to a recent question you included a remark to the effect that there’s a lot of concern about Canadian banks right now. Would you please expand on this comment in regard to the nature and source of the concern you mentioned.

Q: Hi Peter and Team,

I’m a very pleased user of Portfolio Analytics, as well as 5i of course.

Till now, I never changed my allocations using “Custom Allocations”. Previously, I used one of the suggested allocations.

In this era of tariffs, I fear they will throw a monkey wrench into our economy as well as in the US. For example, even though tariffs on steel and aluminum aren’t yet in place, some Canadian firms have already lost orders. “The threat of tariffs is, in itself, a tariff”.

As an example, you recently responded to a member’s question and suggested that the Industrial sector could/would be vulnerable to tariffs.

Please suggest “Trump-proof” sector weightings that takes into account the uncertainty that is rampant with Trump 2.0.

Thanks as always for you assistance in helping us to make informed decisions.

Q: HOOD

A great Quarter , A lot of new clients, Looks good. Should continue to Grow,

Will they move outside of USA EU or China/

Blacks in USA are moving into Stock Market Young Americans are becoming Investors in droves Future of Bitcoin looks good and Trump likes Bitcoin, Everything looks Good

Q What could go wrong ? RAK

Q: Hi Peter and Team,

Our Industrial holdings are too high, considering their vulnerability to the “Trump tariffs”, as you suggested in a question today from Shirley.

In what order would you reduce or sell any of these stocks? This is a daunting task, as I like them all, and they are among the “cream of the crop” in this sector.

I’m planning to use the proceeds to buy some US small and mid-cap ETFs and would appreciate any Canadian domiciled ETFs that you could suggest.

Thanks for your insight.

Q: Any suggestions on how to "Trump-proof" one's portfolio?

Q: Hi 5i, I was listening to a steel analyst stating that "value added steel manufacturers" like Russel metals would be exempt from steel tarrifs. I realize the companies that actually make steel and the steel outputs for downstream manufacturing will be taxed. If this is true then aren't companies like the one mentioned or DRX or HPS also exempt? Now if anything manufactured in Canada is taxed then all bets are off.

Thx

Q: Explain this to me like I'm a ten year old. The US consumes 5M tonnes of aluminum annually. They produce 750K tons. They import roughly 3M tonnes from Canada and now a tariff. Don't our producers just say cool, increase the price 25% and we're even. Who loses here? Who has who by the you know what's? Last time our exports dropped just 14% ( the US customers had bulked up on buying when tariffs were signalled) and within two years everything was back to normal. I don't get it. Is it all just posturing and bluster? Unless the US immediately stops using aluminum aren't they the real losers here?

Q: I realize the higher the yield the higher the risk but I would like 5i's opinion of a few products. As a result of the American President's threats of tariffs which I feel are coming in thirty days I have been rebalancing . Canadian ETF's to American ETF's as well as the sale of tariff risk Canadian stocks . RRIF cash position currently { 30% } .... I would like to take some small positions in some greater than 10% covered call ETF's ..... These would be short term positions as I believe it will be 1 or 2 quarters before Mr Market realizes tariffs are a really bad idea ......

So which do you like better in a Trump world of tariffs ? A covered call bond ETF, a covered call treasury ETF, a covered call stock ETF ? I've been eyeballing HPYT for the simple reason that it appears to be at a low with a very high yield but I would like 5i's opinion. Could 5i list four or five ETF's which you feel would be good choices to play this theme ? It's okay if some of your choices are sub 10% ......{ I already own HYLD.U 6.9% position } And which sectors { bond, treasury, stock } would be the best choices in a Trump tariff world ? .... Thanks for your terrific service ......

Q: Seen this stock drift down almost 20% in the last few weeks. I see they have earnings report in Mid March. Wondering if you have a good explanation for slide despite no obvious news. Not sure if it's tariff related. Your opinion of best of action. Eg Sell or wait for earnings report. Not a big fan of average down when rest of market is flat or going up. Thanks. Chris

Q: Hi Peter and Team,

I notice that you often state that stocks did well under Trump's first term.

With all due respect, Trump 2.0 is, in my own view and the view of many others, Trump 2.0 is a different 'kettle of fish' than Trump 1.0. One needs only to look at both Canadian and US media to see the complete chaos that Trump is causing on both sides of the border.

Thanks.

Q: Hi,
I read with great interest Lisa and Peter’s questions and your answers on Feb. 10 about Trump, US holdings and economic warfare.
Given Trump is now making noises about how some US debt could be fraudulent, and the US may not owe as much as the Treasury reports, I see new risks.
For instance, as part of his economic warfare against Canada, could he by the stroke of a pen declare Canadian held US debt is fraudulent to put pressure on Canada to become the 51st state? Further, could he freeze Canadian held assets in the US (securities, real estate, business assets, etc.) to further pressure Canada?
Along Lisa’s line of thought, does it indeed make sense to sell some US assets and re-buy in Canada?
Final question: if I hold US cash in a US dollar account in a Canadian domiciled bank, is it safe from Trump’s potential ravages?
(Please take multiple credits.)
Thank you, Michael

Q: At an average price of 111$ today down 14%.I agree with your take on not to sell in the Trump threat but? Already overweight so can not add.Are you confident a hold is best or ? Much appreciate your insight.Thanks Larry

Q: with all the talk about trump forever talking about that there are no u.s. banks in canada [wrong] do you see that this could stall growth of canadian banks in canada in future. Bns and td have already been hit hard the last couple of years and being a bank holder for the dividends in canada and him always talking about this do you see any merit in this. Sure seems to be picking on canada the last couple of weeks