How to 'Trump-proof' your portfolio

[JOE]

None of this is my advice but comes from an article by Gordon Pape in the Toronto Globe and Mail. Its targeted at Canadian Investors but there may be a few nuggets of wisdom for Americans too since the general macroeconomic rules apply to them too.

[JOE]

https://www.theglobeandmail.com/investing/markets/inside-the-market/article-how-to-trump-proof-your-portfolio/

The trade war has been postponed but the uncertainty still hangs over the Canadian economy like a damp fog.

President Donald Trump pulled back from the edge on Feb. 1, just hours before Canadian exports to the U.S. were to be hit with a crushing 25 per cent surcharge.

If it had gone forward, it would have been as ruinous as the Smoot-Hawley Act of 1930, which was a key contributor to prolonging the Great Depression.

[JOE]

So, what can you do to Trump-proof your portfolio? First, buy gold. The precious metal touched a record high last week and I expect it to pass the US$3,000 per ounce level within a month. It is proving to be the best hedge for protecting your assets from the turbulence of the U.S. administration. Central banks have been major buyers, seeking to reduce their exposure to Mr. Trump's policies. There has also been a lot of institutional buying. The TSX Global Gold Index has gained 20.5 per cent so far this year.

Some of our recommended mining stocks have done well. Franco-Nevada FNV-T +1.36%increase
, one of our long-time favourites, is up 19.5 per cent (to Feb. 7) despite seeing a revenue drop because of the closure of the Cobre Panama mine, in which it has a royalty stake. Pan American Silver PAAS-T +3.14%increase
is ahead 20.6 per cent this year. Agnico Eagle Mines AEM-T +2.24%increase
is up 24.9 per cent. Equinox Gold EQX-T +2.96%increase
has gained over 30 per cent.

But a word of caution. Not all gold stocks are posting big gains. For example, Barrick Gold ABX-T +2.30%increase
is up only 9.2 per cent this year after the company shut down its operations in Mali following a conflict with the government.

If you don't want to invest in individual stocks, there are plenty of mutual funds and ETFs from which to choose. The iShares S&P/TSX Global Gold Index ETF XGD-T +2.64%increase
, which holds mining stocks, is up 21 per cent this year. If you prefer to invest in the physical metal, the iShares Gold Bullion ETF CGL-T +1.64%increase
has gained 8.55 per cent so far in 2025.

[JOE]

I also suggest owning some low-risk U.S. T-bill ETFs. I have mentioned the iShares 0-5 Years TIPS Bond Index ETF XSTP-T +0.25%increase
, in the past, but if you haven't taken a position yet I suggest you take a look. This normally won't produce great returns (2024 was an exception), but it's a solid and safe holding. The Canadian dollar version is up 0.64 per cent this year, while its U.S. dollar sibling XSTP-U-T -0.10%decrease
is up 1.06 per cent.

Finally, consider buying some low volatility ETFs. They aren't immune to a falling market but the low beta stocks they own should cushion any downward move. We've recommended the BMO Low-Volatility Canadian Equity ETF ZLB-T +0.54%increase
, which has only lost money twice in the past 10 years, the worst being a decline of 2.78 per cent in 2018. The 10-year average annual compound rate of return is 8.9 per cent.

If you're not averse to investing in U.S. stocks, we also like the BMO Low Volatility U.S. Equity Fund ZLU-T +0.34%increase
. It's had only one down year in the past decade (-3.11 per cent in 2023). The 10-year average annual compound rate of return is 10.4 per cent.

Gordon Pape is editor and publisher of the Internet Wealth Builder and Income Investor newsletters.

[Thiel]

None of this is my advice but comes from an article by Gordon Pape in the Toronto Globe and Mail. Its targeted at Canadian Investors but there may be a few nuggets of wisdom for Americans too since the general macroeconomic rules apply to them too.

Sugarbunz, I earn the money and invest it for the both of us. We are doing just fine thanks to me.

You just make yourself attractive and available when I say so and you will be financially secure.

[Lokmar]

There's a big selloff in metals going on right now. Why would anyone want to take your advice, josephine?

[Biggie Smiles]

Here's a better article

How to Spazz proof your internet forum.

Very simple. Ban Joe.

the end. 

[Reggie Essent]

Here's a better article

How to Spazz proof your internet forum.

Very simple. Ban Joe.

the end. 

You can't ban him until I get some Krugerands out of him for my Revenue Stamps.

[Lokmar]

You can't ban him until I get some Krugerands out of him for my Revenue Stamps.

You better get your meds checked out if you're thinking about doing business with THAT ignorant motherfucker! He'll have you running in circles for months!!!

You'd be better off selling to a dealer for a bit of a loss!

[Reggie Essent]

You better get your meds checked out if you're thinking about doing business with THAT ignorant motherfucker! He'll have you running in circles for months!!!

You'd be better off selling to a dealer for a bit of a loss!

No, no, no, Lok.  You don't understand.  I'm trying to give our Joe and unprecedented opportunity to make a handsome profit from his collecting activities.

I don't have time to dig through the interwebbers to find that "end of the rainbow" collector that would pay a hefty mark up for my unique and rare collection fo Revenue Stamps.

Joe is an astute and seasoned collector and certainly has the time to do his research and find that golden buyer for his investment.

[JOE]

There's a big selloff in metals going on right now. Why would anyone want to take your advice, josephine?

As I indicated it's not my advice...Lokmar!

That's why I posted it so you could comment about the merits of the article.

Hard ta say where the markets are going.

I might sink $5-10,000 into mining stocks see how they do. You could be right about metals Lokmar as gold may be overbought. I suspect it's high price is inflated due to uncertainties.

Gold may also be reaching a boiling point. If it reaches $3400-3500 oz that may signal a recession eh? So both gold and the stock market could really plummet. Something like 40%? So after price discovery holds true value might be $2400-2600?


Anyway nothing goes up forever

I wouldn't be surprised if gold peaked in the near future then falls un price again

Theres always a limit...a ceiling eh?

People who invest in gold and metals should be prepared for wild swings in the market

[Lokmar]

As I indicated it's not my advice...Lokmar!

That's why I posted it so you could comment about the merits of the article.

Hard ta say where the markets are going.

I might sink $5-10,000 into mining stocks see how they do. You could be right about metals Lokmar as gold may be overbought. I suspect it's high price is inflated due to uncertainties.

Gold may also be reaching a boiling point. If it reaches $3400-3500 oz that may signal a recession eh? So both gold and the stock market could really plummet. Something like 40%? So after price discovery holds true value might be $2400-2600?


Anyway nothing goes up forever

I wouldn't be surprised if gold peaked in the near future then falls un price again

Theres always a limit...a ceiling eh?

People who invest in gold and metals should be prepared for wild swings in the market

Last time Trump was in, the economy rocketed. It took a pandemic to stop it and it was coming back by the end of his term. biden stepped in and royally fucked us.

Its EASY to know where the market is going. UP UP AND AWAY!!!!

[JOE]

Last time Trump was in, the economy rocketed. It took a pandemic to stop it and it was coming back by the end of his term. biden stepped in and royally fucked us.

Its EASY to know where the market is going. UP UP AND AWAY!!!!

It's hard ta say...Lokmar!

You could be right...but you could be wrong.

Personally I consult my Astrologer:

She claims ta have a track record of bein right 100% of the time...Lokmar!

You should consult the stars from time ta time eh?

[The Donald]

Last time Trump was in, the economy rocketed. It took a pandemic to stop it and it was coming back by the end of his term. biden stepped in and royally fucked us.

Its EASY to know where the market is going. UP UP AND AWAY!!!!

The markets grew 61% in my first term and that is with the pandemic.

Wait until my plan to unlock our enormous energy potential lowers the cost of everything. Wait until American manufacturers have a fair playing field. See what that does to lower costs and create jobs at home. Wait until our tremendous companies increase their profits at home what that will do for the markets.

Invest now. Expect a sustainable market surge in the second half of my term.

[JOE]

The markets grew 61% in my first term and that is with the pandemic.

Wait until my plan to unlock our enormous energy potential lowers the cost of everything. Wait until American manufacturers have a fair playing field. See what that does to lower costs and create jobs at home. Wait until our tremendous companies increase their profits at home what that will do for the markets.

Invest now. Expect a sustainable market surge in the second half of my term.

I have my doubts but we shall see. Nobody has a crystal ball to know what the future has in store for us.

Regardless of the outcome there should be considerable investment in mining oil/gas & AI.

Canada should build alliances with other nations very soon since Trump is pushing a heavily weighted America 1st Policy.