Investment Q&A

Q: Hello team,

With the tariff situation and the often-contradictory comments issued by Trump and some of his advisors leading to some markets sectors tumbling or, occasionally, jumping then retreating once the corresponding news have been corroborated, denied, or even contradicted, the financial markets seem, at times, to be taking the allure of a casino with the performance of some sectors or individual stocks are subject to wild swings, and sometimes even within the same day… How do you advise retail investors to behave under the circumstances?

Consequently, could you see a situation where the repercussions of Trump and his team’s behaviour could affect the US stock and bond markets in an irreparable manner? (For example, large investment houses retreating from given sectors in tandem creating a serious imbalance in trade, or China dumping their large trove of Treasury bonds.)

Adel

Q: Over a year ago you suggested a weighting in tech of 20 to 30%, has that changed if so what would it be today? What weighting do you recommend for gold?

Q: I am Canadian and I have considerable savings in a US money market account. With everything going on in the US right now, should I exchange those US$$ back to Canadian$$$? It appears that the US dollar is losing value against the Canadian dollar,
Your opinions means a lot to me.

Q: Do you have any thoughts on buying foreign currency at this time? Euro, Swiss Franks in particular

Q: Good afternoon - Trump has been granted permission to at least temporarily fire two agency leaders. In your opinion has the risk of Jerome Powell being fired increased? And ultimately a losing an independent fed increased? Thanks

Q: Hi 5i
"This time is different". With King Chump flying by the seat of his pants and his band of nutbars supporting his every insane move, is this time different? The US used to have checks and balances but it appears these have all been removed, allowing King DJT to do whatever crazy thing pops into his head (or appears in his social media feed). With his history of bankruptcies I worry that he is crazy enough to 'fix' their debt problems by defaulting. I'm not sure he understands the implications of this and who would stop him?
Greg

Q: Hi 5i, a while back you guys produced an excellent blog/market update where you discussed recessions/bear markets, their duration and severity, and the multi year returns thereafter. Could you provide the link to that update? Thx.

Q: Hi Guys,

Just wondering…are you buying now? If so what are you buying and are you doing it in several small purchases per equity?


Thanks!

Q: It appears more and more likely that if current tariffs remain in place the USA and Canada are headed into recession. On average markets have dropped around 30% during past recessions. This would imply considerable further downside from current levels. Especially so if the Canadian markets are caught up in the same downdraft.
What is your current view on how far markets will drop from current levels? And Why? And do you still see less of a drop in Canadian markets as one of your previous posts would suggest. If so.,how would that be rationalized?
Is it too late to sell equities, or better to sell and limit further losses if a lot more downside is likely?

Q: What ETF would you buy to be long the market in this volatile environment (moderate risk - some income if possible)? If you can suggest 3 with a brief comment that would be great. Thank you.

Q: I'm sitting on some USD, if my thesis is the current situation will lower the value of the USD. Would you agree? Would you have a investment recommendation to guard against this?

thx for all the support

Q: I started accumulating positions in these the last couple of days with intentions of adding more. Was never able to get in at decent prices ever before. They have all bounced back today and are in green quite nicely which is great but they are only small positions and I wanted to buy more. Do I wait as this mess will give another chance to get in Or do i average up ? Any issues with anything on the list ?

Q: One of the more well known stock investors today on CNBC said he still would not invest in this market because company earnings are going to be down in the next quarter and that is not a time to invest. YOUR OPINION?
Thanks Again

Q: I think we all want to deny the probability of a US civil war. Markets might be efficient but government's are not. I have been guided by looking at worst case vs best case scenarios and have allways found the reality somewhere in between. I'm concerned now, that the US and Trump may be taking us into a worst case scenario. Is there any investment strategy that I should consider or avoid. Thanks. John

Q: Hello 5i Team
Today we went from one extreme to another in the market.Do you think today’s market reversal is a signal to start buying some depressed stocks or should we take a wait and see approach?
Thanks

Q: What do you see as the "end game" in the US involving Trump and imposing tariffs? This is creating a massive disruption. Could the US elite be concerned about the rise of communism and are privately backing this significant "push back" in an attempt to regain a the footing they have lost as a super power? Lately we have become aware of the battle for Greenland and the Panama Canal....China vs the US. If this is part of the end game, there will be alot of pain to go arond worldwide.
I know this is not a straight up investment question....but perhaps we need to try to find out what is motivating these actions and ultimately the impact on economies and stock markets around the world.
Thoughts?
As usual, thank you for your insights.

Q: Could you comment on long bonds interests going up?. Why is that and what does this mean? Implications.

Q: Hi 5ireaearch
What do you think of seeing the ten year American treasuries hitting 4.5%?
Thank you for the excellent service during this time!

Q: Following up to Bens question on market multiples - does 5i have a website recommendation to reference current and archived multiples for respective NA Market index s ?

Q: Would you agree that these unusual times, as 5i describes it, represents an unprecedented period where investors cannot decouple politics and economics?
Thanks in advance for your help during this turbulence.