Investment Q&A

Q: A significant portion of my portfolio is allocated to SPY and QQQ. When i feel a need to hedge what are the pro's and con's of Shorting (using inverse etfs) as opposed to just selling the SPY and QQQ positions.
I'm not trying to sidestep a routine pullback (< 10%) it is more the corrections (10 to 20%) or Crash scenario's that i'm wanting to protect against.

Q: Hi Peter & 5i staff

Thanks for answering my recent real estate sector question in which you suggested that Granite could help diversify my sector holdings.

According to a recent Globe and Mail article, would you agree that Granite "will experience tailwinds because it derives most of its revenue from US based assets"? The article focused on how to manage Trump 2.0.

Thanks as always for your timely responses.

Q: What is the impact of the proposed Trump Tariffs? Is this the reason for weakness in rails, oil and gas, and in general, the TSX lately? Happy holidays and thanks for all you do!

Q: Hi Team,
Is it just me or why do I get the feeling this market is getting a bit “out of whack” in some areas . It looks to me like people are selling the solid winners such as Nvda , for names such as Tesla and Bitcoin. Am I the only one that thinks some of the moves made since Trump got in will end up painful when the hype fades and there’s no real meat to back the valuations ? It’s almost like the irrational excuberance phase has kicked in like it did at the end of 2021 before the tech sector crashed. Except this time only in certain high flying names.

Just looking for your take on things as they stand today. Stay the course ? Join the Tesla party and fly into the sun ? Or buy the laggards perhaps in undervalued areas (Gsy , or even add to nvda dip for example, or trim nvda if the justification is there …which I don’t think it is) . Hard question perhaps!

Thanks ,
Shane

Q: Happy Holiday Season all! Our question is not about a specific stock but rather we will need to take a fair sum out of our TFSA and/or non-registered account within a month or so. We will need to sell stocks from a well diversified portfolio. Can you give us any direction as to which sector it would be best to target for this withdrawal. We would likely re-invest the money over the course of te next 12-18 months.

Q: Assuming stable oil prices and no Trump tariffs ( having no expectations on these 2 assumptions occurring or not ), which of these 2 companies dividends will grow more quickly ?

At what price of oil have the companies stated that their current dividend level could be maintained before lowering it ?

Thanks. Derek.

Q: With Bank of Canada cutting interest rates and oil up, why would pipelines be lower? Shouldn't this also be good for telcos/pipelines/reits or are institutions positioning themselves in cyclicals for new a economic cycle so these rate dependent areas areas are under pressure. I have noticed Pembina was doing well but has been consistently down for many days. Thank you!

Q: Peter et al:
An opinion please on this one with the following points in mind. We all know the sector has lagged, but CVE has a lot of people putting it in the enigma pew. Quality inventory, 71% heavy, diversified with three refineries, fair dividend, BS ok and yet it goes no where. Sentiment is definitely against these guys. G&M article Dec 3, Brian Donovan " The intrinsic value of Canadian oil stocks and what Trump's proposed tariff would mean for them", ends by picking CVE as the one their models show upside for . Eric Nuttall on Nov 21 said that it was one of his worst calls in 2024 picking this instead of Suncor. I await your detailed reply, and I thank you by not asking questions with 30 companies like some. I do my own ground work.
All the best,
Ben.

Q: Hi 5i

What are your expectations for the upcoming year for both Canadian and US markets?
It's understood that you can't foretell the future but gut feel is the ask.
Thanks

Q: We’re overweight oil and gas at the present time with the idea of selling down our positions as we enter the typical positive seasonality for this sector from about now to maybe April. This leads to 2 questions. Do you agree oil and gas look good over the next few months? If this were your money what timeline would you follow to sell off an overweight position in this sector. We’re growth investors with said stocks inside our TFSAs, have positive gains and would like to maximize our gains without trying to be too clever on market timing. Thanks so much!

Q: Why do you think LHX had been weak lately? Is it related to the macro of Trump being less focused on war and the anticipation that there will be less war in the next 4 years? Or more company specific?

Q: Hi, GSY has dropped nearly 20% since it's 2024 high (~205$), any explanation for that ? If the drop continue, what price would you consider attractive?, very attractive ? for a multi-years holding period ? thank you

Q: I am interested in picking a US materials Co as a play on infrastructure spending and to balance my portfolio. I am considering Martin Marietta, US Lime & Minerals, Eagle materials and Quanta services. My only materials holding at present is Agnico Eagle mines (1.6%). I am a moderate risk investor. Of these 4, which you would comfortably buy today with greatest growth potential. Secondly which two seem to you to be least risky. Finally is there another company you would prefer to any of these and if so what would be your reasoning for that pick. Thanks as always.

Q: I am two years before retirement and have a moderate risk profile. My current allocation is 25% Canada, 70% US, 5% Developed, and 0% Developing. Considering the state of the economy in Canada and Trump's threats about tariffs, I am wondering whether it's a good idea to decrease my allocation for Canada to 20% and instead allocate 3% to VWO and 2% to ILF. What's your opinion on this? Where do you anticipate better returns—in Canada or in the emerging markets covered by VWO and ILF?

Q: I did believe that " only USA located" energy (oil+gaz) growth stocks were an interesting investment considering certain isolationist tendencies coming in 2025, quite positive US economic performance, and other factors in the unstable world market. I did invest in these 2 Cies this week at a very low point ; after only 3 days, the losses are already 5% and 7% respectively, every single day reaching the lowest value of the year for DVN..Is it a situation of "falling knives" ,or an excessive correction, hold or sell as an impression according to the risk ? thanks for some light in this situation !

Q: I am down 33% BCE and 18% BEPC in my non registered account. Would you sell both for tax loss purposes ? BEPC is suffering from the general negative in green stocks compounded by Trump but I like the company and would repurchase it while BCE would not be repurchased. Thanks. Derek

Q: What could President Trump do after January 20th that would cause a Stock Market Crash

Bob

Q: Why has Nestle been struggling? Given Trump’s tariff policy, is it prudent to steer clear of foreign companies heavily selling into the U.S. market, or do you think it’s safe to start a position now? I’ve read that 50% of its sales are in America.

Q: In my RRif I own Key & PPl, high yielding stocks to help cover forced withdrawals.
They declined on Friday despite a drop in bond yields.
So you think the decline was due to a drop in Wti?
Trump intends to increase tariffs which could result in higher interest rates due to inflation and his energy policy could lead to lower oil prices.
As a result of the above should I reduce key & Ppl & invest the proceeds into companies that will benefit from higher interest rates such as Mfc & Slf

Q: HI,
Is there a future for small EV manufacturers? Most of them are bankrupt or doing poorly (VMC, LEV, RIVN,NIO,LCID). I owned NFI in the past. Seems one of the last survivors, besides large American (TSLA, F, GM) or Chinese companies (LI, BYD). Would you invest in this sector, if somebody does not want to support chinese businesses? Which stocks would you find interesting right now, or post-Trump taking office? Could be stocks related to the sector, but less sensitive. Thanks a lot.