Q: Given the chance of a second Trump Presidency and the likelihood of tariffs, loss of democracy and full on graft and favouritism what Canadian companies are likely to thrive or at a minimum survive? Is there a defensive strategy that would work for either result in the election or is it one direction with Trump and another with Biden?
5i Research Answer:
Industrial companies with US revenue may be at some risk, such as steel producers STLC, ASTL. Autos perhaps could see tariff issues (MG, ARE, XTC, LNR). We are not sure who might 'thrive' in such an environment if the US makes it more difficult to do business there. Companies with European exposure may not be impacted as much, but this is not the same as thriving.