Stocks that should be carefully watched under the current Presidency of Trump
If you have invested in any Canadian stocks, listen up! Chairman and founder of the investment firm, J. Zechner Associates, John Zechner, has some choice words for you.
According to Mr. Zechner, there are some Canadian stocks that are at risk under the Trump presidency. Here are his top picks:
Gildan Activewear (GIL.TO)
This clothing manufacturer out of Montreal is at risk in particular due to President Trump’s border adjustment tax. The company has operations being ran south of America’s border so you can connect the dots yourself.
Alimentation Couche-Tard (ATDb. TO)
This is a huge retailer of the commodity, gasoline and will definitely be put in harm’s way if the American administration decides to make any adjustments to the energy policy. This is what Mr. Zechner had to say on the matter:
“Couche-Tard is at risk with any changes in energy policy in the U.S. as the margins in their retail gasoline business is extremely low. Any negative impact from planned policy charges changes has the potential to put further pressure on margins.”
Gasoline prices could also go up if the refinery rules are changed. This will affect the company if they cannot absorb the extra cost or past it on to the consumers.
Magna International or Martinrea International
Founder Zechner feels the same way about Magna (MG.TO) and Martinrea (MRE.TO) as he does Gildan; both run operations in Mexico.
