Investment Q&A

Q: I have about 10% cash that I am considering putting in U.S. stocks. Even with our $.69 dollar, I don't see any catalysts to improve that over the next few years. I have a good diverse portfolio in both $Cdn and $US, but I am definitely lighter in US exposure.
With the uncertainty of tariffs, Canada with no real leadership for the foreseeable months ahead, the US "Drill baby drill", and Canada not seeming able to attract large international investment, is there anything left to drive growth in Canada?
I am retired, so I want something that should be a little less volatile. I'm thinking of adding to MSFT and JPM, to bring them to a full 5% position. Is this a good idea, and if so, can you also recommend 2 other stocks for me to look at. What are your thoughts on Healthcare, stocks or ETFs, with the new administration? Everything US is inside my RRSP. Thank you

Q: I have two entirely different endpoints for my TFSA and my RRSP. TFSA is shorter-term funds to pay down my mortgage, and RRSP - its intended purpose, longer-term funding for my retirement. In this case, would you consider the percentage of each account separately when weighting, or use the combined value? Currently I am separating, but because I own a couple of doubles (NVDA and TVK for example), the position sizes are higher than I would normally hold. If considered together, my positions do not exceed my maximum weighting. Thanks!

Q: Hello, with the coming of the US tariffs and counter tariffs, which CDN sectors are insulated and which are vulnerable?
What would be you best stock recommendations to invest new money?
Thanks
Carlo

Q: With Trump demanding the “independent Fed” reduce interest rates….how could this or not affect the stock market?
Thanks
Ben

Q: In the “new Trump reality” and associated statements and his expressed policies goals for the American economy directions for the near and long term would you advise/recommend your specific portfolios content/weighting adjustments in regards to geography , type of investments , cash % and any other potentially important issues ? Or should they stay as designed before the Trump second presidency term ? Certainly Trump election has generated a lot of noise in the media including business media . Thank you for your opinion and input in this obviously concerning and confusing times .

Q: I am 45% Canadian and 45% US, 10% international, what do you suggest this year? I would love to reduce the US but is there alternatives ?

Q: In a normal world I would keep both of these for diversification purposes. But this isn't a normal world. It's a Trump world and Feb.1 is an ominous date to me . I have a 3% position in HDIV and a 3.5% position in HYLD.U . I am re-balancing for Trumpification purposes generally { individual Trump vulnerable Canadian stocks are being sold and cash is being raised . Likely somewhere around 20%-25% cash when I am done } } and will likely increase HYLD.U to around 9-10% when finished . Would you endorse selling my HDIV and using the funds to increase HYLD.U ? Selling one to buy the other will bring my HYLD.U to somewhere around 6.5 % before I decide whether or not to go as high as 10% . The decision on the increase from 6.5% to 10% will be made after I see just exactly what he has planned ..... The question really is whether you would endorse a move away from Canada in the short term with these two ETF's ? At least until the smoke clears ? Thanks for your terrific service ......Garth ......

Q: Dear 5i Team!

I am sure like many millions you have been watching Presidet Trump's inagural address. Especially given the fact that the US market is closed toay because of MLK day!
Any takeaways from investment/trading points of view?

Canadian market is open and I see Oil has barely moved. (post Trump speech) Gold is down but to an alrming extent. CAD is slightly up! I am not sure if this is because the US markets are closed or because of "moderate" tone in Trump's speech. I didn't hear China or Iran ONCE! Neither did he bring his desire for the 51st state!

Anyway feel free to share your musings.

Q: Everyone, I hear a lot about paying less fees (MER or Trading fees) and over time the money that can be saved. But what is the best ideas to having a better overall return? Diversification? Less trading? Buying the best stocks? Etc.. Clayton

Q: Everyone, how often should I pay attention to the VIX? I am a buy and hold investor. Clayton

Q: How significant is foreign buying/selling of Canadian stocks, in terms of the effect it has on share prices? I can't help but think that the current Canadian political situation, and weak dollar, is causing a lot of foreign money to stay away. I'm wondering if a more stable and business-friendly government, if/when the PC's get elected, would cause a significant influx of foreign investment into Canadian stocks. Do you think such a scenario would improve the performance of Canadian stocks?

Q: As irrational as it seems,Trump may impose tariffs soon after his inauguration just to appease his voting base.A likely “knee jerk “reaction would send these stocks lower.Do you think this would create a buying opportunity?Are there others in your portfolios that could be affected? Some of this uncertainty must be already be priced in,but CLS seems immune to this.

Q: Is there a safe place to hide in Canada with the incoming US tariffs? What is your take and what would be your strategy to protect capital?

Q: I have been hearing a lot of people on BNN and other sites saying that the market is overpriced and due for a decline. I have looked at a few "investor sentiment" surveys online where the bearish sentiment is above average and increasing. How accurate are these indicators as contrarian indicators, i.e. that when bearish numbers are above average the markets are more likely to actually increase, and when bullish numbers are above average, the markets are more likely to decline?

Q: If you were working for a company and were fortunate enough to have a defined pension plan, would you take on more risk when investing? If yes, what would that mean for concentration risk such as: maximum % of a single security, or maximum % in a specific sector?

Q: Hello 5i,

Can you explain where money flows too during risk-off periods such as 2007-2009 and 2022. With the risk of no declines in the Fed rate this year what would the 2025 scenario look like for equities? Other than shorts, are there sectors that can flourish in a 2007-2009 and 2022 scenario?

At which point is it favourable to look at short-term and 5-10 year Treasuries?

Thank you for your service.

D&J

Q: I do not recall the rationale for the change in RRSP rules to lift the requirement that RRSPs had to have a certain percentage in Canadian equities. Canadian companies have a hard time raising equity, and this rule change must have caused a lot of money to leave the Canadian stock market for the US. I would support a reinstatement of the rule for any new money. If Trump wants to hit Canada with tariffs there is no reason why Canada should encourage investment in the US.

Q: How should I protect my portfolio before Trump introduces tariffs of up to 25%. Which companies would be most affected and might be sold before this happens?

Q: Hi 5i,

Basic clarification - when you allude to allocation percentages in a portfolio - do you 5i - speak to the allocation % in an OVERALL Portfolio? Example (All non reg and registered investment accounts) or within a specific portfolio (i.e. RRSP etc.)?

Thank you!

Q: Hi Peter and 5i Team,

Recently, Noah Solomon has had several articles in the Financial Post in which he describes the inherent dangers of the S&P 500 due to its high valuation, warning signals from the CAPE ratio, etc. (I’m using VFV as a typical ETF).

What is your assessment of his views? What strategies might a retail investor employ if there’s validity to his thesis?

Thanks as always for your insight.