Investment Q&A

Q: What to you consider the long term consequences of the Democrats now having control of the Senate and House of Representatives with regards to prospects for Enbridge? Of immediate concern is the rumoured pending announcement by Biden to cancel the XL pipeline in an effort to appease the left leaning members of his party.

Q: Hello Team,

TWTR stock came down 5.5% from Wednesday to Friday and is now down another 3.77% after hours following the announcement that Trump was permanently kicked out of TWTR space, an action also implemented by many other social media companies, even PINS. I know Twitter will survive without Trump but how about its stock!?

Do you think the drop is a knee-jerk reaction and the stock will recover in a short order? or do you think the stock will continue to languish not because he is gone, but because TWTR cannot monetize its millions of users looking for the latest news/events in political arena, a generally depressing space at the best of times. Trump at least had made this space a bit more lively/interesting.

I have been waiting very patiently for a vey long time on this stock to finally move and now this. I want to hold as I think the company is ready for live sport and ad revenues from it, but I wonder if this elusive goal is worth the opportunity cost.

I know you like TWTR so what would you do? I know your most likely answer is "nothing," but could you tell me if nothing really has changed and the future is bright for TWTR with or without Trump.

Thank you as always!

Q: Peter; If the Georgia election is “ overwhelming “ in the Democrats favour - basically rejecting the Trumpaffoon - is this a market changer and possibly the end of the clown politics? Crystal ball question I realize. Thanks . Rod

Q: What are the Chinese companies that Trump has prohibited Americans from owning. Do you think Biden will reverse this decision? Will this affect Chinese etf's such as Kweb and other popular stocks? Thanks for your insight.

Q: I am ussually not a holder of cash in my investment accounts. I have moved to about 15% cash by cleaning up some dogs and selling some assets that bounced back post march crash. The recent run has given me FOMO. My brain is telling me that the markets are crazy and there is no good reason for this recent run, the but the market is alway right. So I sit here asking myself "Am I acting like Trump or are the markets acting like Trump?" ....So my question is: if you did a 5i office water cooler poll how many think there will be a major second correction in next 4-6 months: never, unlikely, likely, 100%.

Q: Peter; We had a Trump rally when he was elected- could we another one if,as, and when he leaves?
Rod

Q: I'm interested in your take on the likely effects on the markets of the two major significant events that have coincided: Pfizer's positive announcement regarding its vaccine, and the Biden victory.

Regarding the former, some commentators are suggesting that, after many false starts, there is at least a shortish term tradable opportunity in value over tech/momentum, partly inspired by a rotation out of the stay-at-home trade and a move into the Covid19-bitten cyclicals. Given that such a rotation would have to overcome the current vulnerability of under performing value stocks to tax loss selling, do you concur in this view, and if so, which sectors in value would you suggest have the most potential?

Regarding the Biden victory, how much of the clean tech trade do you think is already reflected in the market? Given the less confrontational world view of Joe Biden, would you now view the markets of China, Europe, and even Canada more optimistically? What else does the Biden victory (or the Trump loss) bring to the trader's table?

While I'm sure you wouldn't advise over-reacting to political events or corporate announcements, the transition from authoritarian to democratically-inclined leadership in the world's most influential country, in addition to a potential cure to a devastating pandemic, are not run-of-the-mill occasions. Assuming this new world is permanent and Biden's victory stands (most likely) while Pfizer's vaccine has no hiccups (less likely), an analysis of how one might adjust investing strategy, no matter how incremental, would be appreciated.

Q: Would like your opinion on a solid materials or gold company with good growth and 2-3+ % dividend for a conservative investor . Thanks.
Also I am surprised with Wall Street wanting Biden in so things get back to “ normal”
In my world the last 31/2 years have been excellent (financially) thanks in part to your recommendation. I have made more in the market recently as I ever had in the past I think thanks to Trump.If there was one thing I liked about Trump was his policies on China , taxes, red tape etc.
Now with Biden in I’am more worried and will have my hand on the sell button with my winners. Will give Biden a wait and see, but not at all confident on his positions. My thoughts
Thanks, Brad

Q: Good Morning
I will appreciate any comments you may have with respect to the effect on the stock markets regarding the outcome of the US election so far.
Thanks

Q: Hi,
is the current debt level for ABBV to risky in the current economic environment or is the projected cash flow enough to reduce this risk? Might this cause dividend increases in the future not to happen?
In some of your answers to questions from members regarding health care stocks in the US, you often mention the election as a possible concern. Could you expand on this please? I assume you mean that one party is better than the other for this sector.
Thanks,
Dan

Q: Can you please provide an updated view on FSLY? I have ridden the rollercoaster back to where I started and would like some insight from you in order to help me make a decision to hold or sell. I am growth-focused and therefore not overly concerned with risk, but I don't want to continue holding it without a reasonable shot at recovering the growth it has shown earlier this year. I believe that my portfolio is well diversified, including exposure to other stocks in FLSY's segment. Thanks.

Q: I have some cash on sidelines I can invest. I know you don't support market timing however do you think it prudent to wait until the US election is over to put funds to work, as won't the different policies support the growth of different sectors? Thank you, Bill

Q: If Biden is elected and the Dems sweep,is it reasonable to expect folks to sell their winners to lock in the present significantly lower capital gains tax when compared to Biden's proposed tax?

Q: When Trump won the White House in the last election stock market rebounded sharply. If he is successful next month I would think we would see the same, however if Biden wins his election platform is quite different and wonder what your opinion would be if this is the case.
As an investor should we be locking in gains now.
Thanks and look forward to response
Rick

Q: I was wondering if you would be able to give me a few stock buy and sells based on the upcoming US election.

1. If Trump wins, what stocks could do well and what stock will not do well.
2. If Biden wins, what stocks could do well and what stocks will not do well.

Can you give me a few of your Growth Portfolio stocks that you might considering lightening up on and a few stocks that you might consider purchasing more. (Feel free to add in any other CAN stocks and a few US stock as well).

Q: Retired dividend-income investor. Long term holder of TRP. Would the recent decline in share price be attributable to the Biden-Trump debate #1, which analysts say Biden won (therefore putting Keystone XL at further risk) and/or the movement towards the change in sentiment (carbon-based vs renewable energy)?

I normally am a long term holder of core positions, with trimming/adding when rebalancing is required. I was due to add, once TRP came back down to $58. Now it is at $55 and I have adjusted my "adding" target to $50. I am not too far below a full position (at roughly 85%).

I do not plan to sell TRP believing that as the pandemic subsides, the oil & gas industry will recover. However, I am beginning to wonder that I may be better served to allocate these "top-up" funds to the renewable part of the energy sector instead. I also own AQN and FTS.

Your thoughts? Thanks for your help...Steve

Q: Hi 5i Team,
I was able to build up a half a position of WELL before it took off on me and have roughly a 150% profit on the position. I can't help but think the stock is a bit overvalued at this point and I have been pondering what, if anything, would be the best move long term in a TFSA account?
I was thinking of trimming the WELL position to bring it back to what I consider a normal full position and put the proceeds into either TCS and bring it to a full position or add to a SYZ position bringing it to .5 weighting?
Another possibility is just to let WELL run until I rebalance due to its weighting in my total portfolio which is my usual system of rebalancing.

Thank you for the advice and have a great weekend!

Q: What would you conjecture would be the market's response if the following were to occur: 1. Biden wins so decisively that Trump leaves with very little resistance 2. The Republicans win the Senate and 3. Shortly thereafter, we come up with a successful vaccine ? Thanks.

Q: It seems that Trump is determined to punish Chinese stocks somehow. I have done well with these three and I am reluctant to sell them. Your thoughts?

Q: I am biased to see gold continue to move higher as we get closer to the US election. Particularly if Biden wins, since Trump will no doubt contest the results and pretty much do all he can to remain in the White House beyond Inauguration Day, resulting in heightened volatility.

At the same time, I could also see a scenario where the US$ rallies on the back of a FTQ bid amid this volatility.

So does one add to gold exposure with the view that the US$ rallies in the coming months? Or do you think any potential uptick in gold will be mitigated by a stronger US$?

And if you were to be relatively bullish on gold, would you buy, say, XGD, or would you add a company like FNV or ABX?

Thanks in advance.