Investment Q&A

Q: Hello Team 5i & Everyone,

Just wondering if you have any comments or if you can share which data/charts you’re currently keeping a close eye on with the US markets regarding the looming removal of the independence of the US Fed? I watched Powell’s video response up on the Fed website and am inclined to agree with his assessment of the situation.

I realize there’s no point in guessing, however I would not be surprised to see Powell replaced when his term ends in the Spring by someone who is keen to cut interest rates regardless of what the economic data is advising. I would also not be surprised if this sparked a sugar rush in markets and a rise in inflation. But we’ll see what happens, I’m sure there will be more developments before then.

Living in interesting times isn’t all it’s cracked up to be it seems.

Thank you,

Sandra

Q: Can you please provide an opinion on EOSE related to help power the AI industry. Do you see revenue growing at a high rate with some visibility, or mainly hype?

Q: Hi 5i team!

To follow up on this question from Jan 5th (with a twist):

Please give me your top 3 sectors for 2026 (in order of preference) with top 3 picks for each sector for USA.

Also, when do you plan on releasing your AI blog article?

Thanks and wishing everyone a prosperous 2026!

Q: Greetings
I currently own 8 shares of Constellation Software with a total cost of $3,877 in my RRIF. I am considering contributing $7,000 to my TFSA for the current year versus leaving the funds as a cash deposit, and I would appreciate your opinion on this decision.

In addition, I hold more than $40,000 in cash and would welcome your perspective on whether it would be prudent to invest a portion of these funds or to continue holding them in a money market account while awaiting further market volatility or unforeseen events.

Rick

Q: Everyone, the first week of trading is now complete, what have you gleaned from the week? Clayton

Q: Greetings,
From a response from your office, I interpreted these five were suggested as still being good opportunities at present day prices. Did you mean full position or tranches etc?

Like many, I'm terrified of the impending pullback, especially with Tech names and what if prices fall by more than eg: 15%?

Secondly, what is your opinion on what might happen to the market, in the short term, if Trump keels over and dies?

With thanks, A

Q: Given that I have no idea what the US (Trump) will do next, I am reluctant to invest new funds in equities. So I have the sense that I should increase my bond and gold exposure for the near future. I would appreciate your comments on this strategy.
Thank you.

Q: Hi Peter and Team,

My question isn’t about recent geopolitical events, since I need to re-balance our portfolio in accordance with the recommendations given in 5i’s Portfolio Analytics. Of the eleven TSX sectors, please give me your assessment of which sectors can be overweight and which sectors can be underweight going forward in 2026. I realize that this requires a ‘crystal ball’, but your experience over many market cycles is certainly superior to my own!

Thanks as always for your expertise. Happy New Year to all at 5i, as well as my fellow members of the 5i community.

Q: Are there any undervalued sectors today?

Q: Hi Group please give me your top 6 sectors for 2026 (in order of preference please. Also can you give me you top 2 picks for each sector also in order of preference Lastly too late to buy gold and silver and copper what is your top picks in Gold and silver as well please assuming you recommend buy at this late date...thanks

Q: I realize that CAD/USD exchange rate is historically very hard to predict, but most pundits are calling for US dollar weakness in 2026. About 60% of my portfolio is in US dollar denominated assets. Should I reduce that exposure?

Q: You mentioned in an answer to one of your questions that money has been moving from technology to other sectors. Which sectors are receiving the most new investment?
Could you give me some examples of companies within those sectors that are strong companies fundamentally and have excellent upside potential. I

Q: You have mentioned Japan increase in interest rates (just announced this morning at 25 bps) and carry over trade as one of certain key risks for 2026. Is purchasing VIU the wrong investment decision with such risk on the immediate horizon? VIU has Japan as top geographic holding at 24%.

Q: Reported U.S. core inflation is 2.7% for November and the trend appears to be downward. I think you have expressed the view that tariffs are inflationary. Given these numbers, would you be revising your opinion on this matter?

Q: I was curious about the Private real estate investments. I have seen companies like EQUITON who advertise returns of 16 -20% annual on their development offering. Do they have good track record? Is that rate of return possible? Are they too risky for retail investor?

Q: Hi, can you enlighten me regarding the Japanese carry trade situation? I am reading, but not fully understanding the effect of the Japanese government possibly raising interest rates - maybe soon. Is it possible this is a concern for traders globally if they or their large funds are heavily hedged using the Yen vs USD? I'm concerned this may be why there seems to be a rotation out of tech, even though the idea of continued AI spending seems likely into the next year. You always seem to be able to put these things into perspectve - thank you.
D

Q: I am changing providers for my RRIF. My understanding is that the process takes roughly a month, during which time thre account is frozen. I am presently about 65/35 equity to fixed income. Would it be wise to make my portfolio more conservative during this period. Conserving capital would be my main concern

Q: Follow up on a recent question on FCCM and WXM. FCCM has the lower MER. Other differences I see in a simple comparison from my online broker: FCCM is large cap while WXM is mid cap. 5 year returns for WXM is higher, but 3 year, 1 year, and less favor FCCM. Dividend from FCCM is 0.64% paid annually and WXM is 1.26% paid quarterly.

I own WXM in my TFSA (up 55%) along with a selection of stocks from your portfolios. I also own VMO in another account.

How do you view these investment style ETFs (growth, dividend, value, momentum) vs geographic ETFs vs sector ETFs vs others for DIY investors trying to diversify within an account?

Q: Dear Peter et al:

I enjoyed your article , "This December, free up some time by ignoring these investing issues". A timely article. Well written. As a long term subscriber, I know that you live by these "principles" even when we pepper you with questions on target prices! :)

You didn't mention about what would make you "sell"! In other words, what are your exit strategies other than trimming your position sizes in those multi baggers!

I ask this b/c of my experience with Knight therapeutics, Payfare and a few others. Do you look at "opportunity costs" in your portfolio construction?

I value your words of wisdom, always!

Q: I would consider myself a long term investor tilted toward growth. For such an investor, what is your overall opinion of selling covered calls on long positions. I have dabbled in the past, but in the end I find that I do not enjoy the potential risk of giving away opportunities for growth just for the sake of earning some cash. It seems to me to be a short term gain, but a potential long term loss. Your thoughts on my perspective?
Thank you for your excellent service.
Cal