Investment Q&A

Q: Peter; With Trump stating that the big tech companies are going to supply their own power - meeting next week- could you foresee outright purchases of existing power companies? Thanks.
Rod

Q: I am starting to read more about the risks for Netflix with respect to their bid for WB. Particularly in light of the improved offer from Paramount this week, and comments from the Trump Administration that suggests they likely will be involved in some way in approving a deal at some point, however that ends up looking.

My question is this - in the event that Netflix loses out (my view is that it is 60-40 they do lose out, either on price or regulatory/DOJ hurdles down the road), do you think there is upside in their stock price near-term? And I have also been reading that if Netflix does not get WB, they may take a run at Disney.

What are your thoughts on this?

Thanks as always.

Q: Hi team,
Is gsy tanking today from trumps tariff uncertainty? Or is the late earnings date release now of concern? Many growth names are again in free fall today I am assuming must of it is back to trade uncertainty and again software sell off.

Thanks

Shane

Q: The State of the Union address by Trump is on Feb 24th in the evening. The Supreme Court will release decisions on Feb 20, 24 and 25, and these are the last dates until July 2026. I predict they will wait until after the State of the Union address because Supreme Court judges attend the State of the Union, and they don't need Trump criticizing them in public and will release their decision on Feb 25th. If they decide the tariffs are unconstitutional, which sectors might be the winners?

Q: Hi 5i, scanned comments for review of recent quarter but could not find anything. Pls opine on their results. Is there any reason for the slow grind down over the last year? I would have thought the "big beautiful" bill coming this year would ignite consumer spending hence their toll fees. I'm looking to lighten up on my Cad financial sector holding due to the lack of progress in our economy getting anything built, plus the bleeding of manufacturing jobs and increasing delinquencies. Thx.

Q: Under a scenario where Trump gets his aggressive rate cuts, US unemployment rises as lay-offs continue, U.S. personal debt delinquencies continue to rise and US national debt increases even further, what segments could see a lift? Segments to avoid? Please provide 10 favourite Canadian stocks under that scenario.

Q: Conservative investor, given where markets are trading....and Trump. Seeking a 4+% yield with reasonable safety of principle in mind. In a 50/50 fund, what percentage of fixed income would you place in ZLC. Might a better approach be to just raise the total equity allocation instead by adding some US holdings, like ZWH for example? I realize you don't know all my details, just looking for a general comparison. Fantastic service, thanks.

Q: Trading well below its price when the U.S. government announced it was taking a stake in the company. Do you think it may be a good time to step in as a long term investor? Or are there lithium plays you think look better?
Thanks

Q: Why is it falling this much? Is this good buying opportunity?

Thank you.
Milan

Q: What do you make of the markets today? Tech, gold, silver, metals, and cryto really getting hammered. Is this a result of these specific sectors just running too hot, as well as disappointing MSFT earnings, slowing growth and larger cap ex. Aside from MSFT, META had larger cap ex and the stock got rewarded for larger rev guidance. We can see how these tech companies will get punished on less than above average earnings and guidance. Is this market priced to perfection and expectations are just too high? Is it time to raise more cash and be defensive?

What do you think of the comments below from Powell and Macquarie and the potential for US rate hikes within the next year? We know markets are forward looking and are they expecting this potentially later this year? We all know Trump wants to appoint a dovish Fed chair after Powell. If we do expect rate hikes, this would of course take the air out of tech, risk assets, gold and silver. I hold many growth names that you mention and would like to limit the drawdown.

Lots to unpack here, but what would be your assesssment for the remainder of the year. Thank you!


**U.S. central bank chief Jerome Powell described as a solid economy and diminished risks to both inflation and employment.

**"While the outlook remains uncertain, particularly given the appointment of a new Fed Chair in coming months, our baseline remains that the rate cutting cycle is complete, as labour improvement lies ahead," said David Doyle, head of economics at Macquarie Group.

Q: A portion of my portfolio is invested in gold, and I have enjoyed the ride that more than tripled the price of gold since February 2024, when the European Commission officially approved regulations allowing the use of proceeds from frozen Russian assets to arm Ukraine and stated that these assets would remain frozen until Russia repays damages to Ukraine after the war.

Even though I am pessimistic that Trump’s efforts will bring an end to this war - there is too much financial interest in the U.S. and Europe to continue it for as long as possible - there is still a chance he will succeed, and I expect that the price of gold may come down significantly following peace.

As PHYS doesn’t have options, is buying GLD puts the best way to hedge gold prices? Any other suggestions?

Q: Good morning,

So with the new Fed Chair nominee being announced today, I am surprised that gold is moving lower. For him to have been nominated, you know he is going to push for lower rates. But historically he has been known as an inflation hawk, thereby preferring higher rates to ward off inflation. There is the question of what this now means for Fed independence, which in turn could result in further volatility in the rates markets. All of this points to the ongoing theme of USD weakness amid a flight of capital away from the US.

In my small brain this points to higher gold prices, not lower gold prices - lower rates; lower USD; higher volatility; less Fed independence. But gold is moving sharply lower. What am I missing?

Thanks as always.

Q: Read in the Economist that the Trump administration bought into the above companies.
None are making any money at this point. Realizing it is a speculative play, would you recommend investing in any of these ?

Q: Hello Peter,
Your opinion and suggestions please.

There seems to be a consensus emerging that China and the emerging markets in particular will outperform the US markets. Do you think the same? I understand that 5i does not research international markets. Nonetheless I would appreciate it if you could suggest sectors and stocks from China and elsewhere; within your knowledge sphere.
I heard the German Chancellor in Davos mentioning deregulatory reforms as well as refrain from looking at outside capital markets(US) as a source of capital. And I believe that Trump threatened Europe with retaliation if they sold off US assets. The dollar has ben weak and probably goes even lower. That should bode well for international markets.
It would be great for us subscribers if 5i expanded its research even if limited, to international markets, particularly China. Any chance of that happening in the near future?
Regards
Rajiv

Q: hello 5i:
President Trump is going to go ahead with the Golden Dome, whether Canada participates or not. It sounds as if most Democrats also support and would continue the program. In your estimation, which companies would participate or benefit most from this undertaking?
thanks
Paul L

Q: The question from Gerald

"Q: Hopefully, the term is self-explanatory."

What is this about?

Q: Last question on these two companies as late December, and I am interested if your take has changed. I just sold CAT, and am looking at repositioning into one of the maintainers of its equipment; largely to get out of the $US and potential risks to CAT of Trump policies.

What is your take on these 2 companies and which would come out ahead for an investment now?

Q: It appears that Trump's cognitive abilities are rapidly declining. What do you see as potential outcomes if he is unable to complete his term? What do you anticipate the impact would be on bonds, North American equities, crypto currencies and precious metals? Would precious metals be a possible hedge? I realize this is very hypothetical, but I'm interested in your opinion. Thank you for the service you provide.

Q: Hello to the 5i crew. Are lumber prices on the upswing? The reason I ask is that I still have a half position in Western forest Products (WEF) and it has gone from dead money to up about 25 per cent in 2026. I did notice that the big boy in North American lumber WFG is up a bit as well. So what's up? The home builders are not really blazing ahead with housing starts and the whole forestry industry seems moribund! So why are lumber stocks getting a bit of a lift? Is there something percolating under the surface that us little retail guys can't see? If my shares in WEF were in a taxable account I would have sold them in December but they are in a RSP. Should I count myself lucky and get out of WEF after this upswing or is there something going on that might make it go higher?

Q: Given Trumps latest musings about credit card companies and capping their interest - how negatively will that affect PRL and it’s business plan?