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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Looking towards an isolationist, anti-trade Trump presidency, which sectors in Canada do you think would suffer most? I'm thinking of autos and lumber, as a start. Are there any names on the balanced portfolio which would be particularly hard hit if NAFTA disappeared and their US exports were threatened? Ie, Magna, SJ.
Read Answer Asked by John on November 09, 2016
Q: PPL and others in the utility pipeline space have taken a major haircut in the last few days for no reason at all. Is the threat of a Fed rate increase really to blame? In real financial terms that is really immaterial. However, market movers have been using all threats (real or otherwise) to further their games of stirring stock movements. What is your take on this? Thanks.
Read Answer Asked by Victor on November 04, 2016
Q: A Donald Trump victory on Tuesday is now no longer a hail mary based on recent polls and commentary (and regardless as to Canadians imploring Americans to not vote for Trump). It is truly scary for so many reasons. How would you hedge the balanced portfolio against what is likely to be a general market meltdown if Trump wins? And just a clarification on the balanced portfolio to end of October - have absolute returns been 19.6% to date (or vs. benchmark) and 125.9% cumulative since December 2014?
Read Answer Asked by Michael on November 04, 2016
Q: Hey folks
With it looking more possible that a Trump win is in the future, and the predictions of how the markets are going to fall ( which we may have seen the start of today), would it be prudent to take some gains off the table now and reinvest when/if the markets drop, knowing fully that they will recover in a short time, or should a person stand pat and ride it out? I am thinking there may be some gains to be realized by playing the over reaction that is sure to come if Mr. Trump wins.
Read Answer Asked by Michael on November 02, 2016
Q: Is United Health (UNH.us) one to sell given the unusual political volatility? My question was also prompted by my renewed awareness that I may have over-allocated funds to bio-tech companies, and older-line pharmaceutical companies listed in the US and Europe. UNH is neither bio-tech nor pharma, but would it be safe from the ongoing and apparently increasing Congressional frustration with the entire industry.How would the abolition of the Advanced Health Care Act affect UNH? I am fine riding out the political yelling, so long as you think UNH still has a good future, with dividend growth and some price appreciation.
Read Answer Asked by Adam on October 11, 2016
Q: Hi 5i team!! I am at a conference in Arizona, and just the feeling I get polling my colleagues, all of whom are academics, the general consensus is that Trump will be the next US president. Hillary is not a favorite because of allegedly crooked behaviour which I was unaware of. The way I look at it, neither one, Trump or Clinton are a good choice but that's a moot point. So, to my question...what do you suggest.. If the Donald gets in ...should we sit tight on your suggested portfolios or sell certain stocks, or sell everything and head for the hills ? Which stocks will do poorly and which ones may do well? Cheers, Tamara
Read Answer Asked by Tamara on October 03, 2016
Q: Hi Peter and Team,

In today's Financial Post, there's an interesting article called "Betting on the U.S. election via the ‘Trump ETF’"

If one wanted to "bet" on a Hillary victory, would a small purchase of EWW be a wise move? Any hesitation I have is due to currency risk, but I am unsure.

Thanks for any advice.
Read Answer Asked by Jerry on October 03, 2016
Q: OK the Trump effect ... would it be prudent to turn all investments into cash lets say a week ahead of the US election (50 stocks X $10/transaction =$500) and if Trump wins ride out the wave of volatility and then buy back into the portfolios for another $500 hit possibly avoiding the chaos that would follow the Donald into his presidency? If Hillary wins would you expect a positive response from the markets?
Read Answer Asked by Alan on September 23, 2016
Q: I move in and out of gold depending on my fear level and currently have no exposure. Trump is managing to change my perception, however, and am currently looking for ideas. GLDI seems to have a screaming nice yield, but share depreciation has eaten away any gains over the past year. What would need to happen to the gold price to reverse this trend. Any thoughts or other ideas (excluding GLD and XGD).
Thanks in advance
Read Answer Asked by Kyle on September 23, 2016
Q: Currently gold is about 2% of my holdings. Half is TMAC, the rest split between Osisko and Roxgold. The miners are both in advanced pre-production.

I am looking to go overweight gold for the next 4-5 months. Possibly as high as 12-15%. I think seasonality may get a boost from India, whose markets and monsoon have been very good this year. And I want TTT (Trump Temper Tantrum)insurance in place well before Nov 8.

Can you put fwd a short list of producers and royalties that you think would do best in a rising price environment in that time frame. (Please note, ROX's asset is in Burkina Faso, where most of SMF's are.)

Thank You for this and all your other fine work,

Tim
Read Answer Asked by Tim on September 20, 2016
Q: 5i

Appreciate your comments in regard to the next USA President. What do you beleive the markets in general will do and what will happen with commodities, oil, gas and gold if Hillary gets elected or
if Trump gets elected. Some pundants Are saying gold will soar if Trump wins and markets will drop 20%. If Hillary wins then markets will be volatile as people do not trust the establishment.

Wayne
Read Answer Asked by Wayne on September 15, 2016
Q: Good morning...In the world of a Trump President and his dislike of the NAFTA and potential dismantling of that agreement..What names /sectors would suffer the most...Would you see a major readjustment to your portfolio in preparation of any action? If so, how far in advance would you adjust?

Thanks
Read Answer Asked by Matthew on July 27, 2016
Q: I hold many quality dividend paying stocks which are reaching new highs in the face of a solid wall of risky economic scenarios including a possible real estate bubble, the impact from Brexit and possible Trump victory, probably inflated commodity stock prices, an uncertain energy outlook and so on. Does any of this suggest taking profits and retreating to the sidelines? A recent comment by David Rosenberg posed equity values appear to be whistling by the graveyard. Your thoughts?
Read Answer Asked by Ken on July 11, 2016