Stan Wong, Portfolio Manager at Scotia Wealth Management
Focus: North American Large Caps & ETFs
Top picks: iShares Silver Bullion ETF, McKesson and Nvidia
MARKET OUTLOOK:
Equity markets have rebounded strongly since the April correction, with the S&P 500 up more than 20 per cent, the Nasdaq over 28 per cent, and the TSX advancing nearly 18 per cent. The S&P 500 now sits about 2 per cent away from its all-time high. Investor sentiment has improved as recession fears fade, inflation trends lower, and corporate earnings continue to outperform expectations. The U.S. Federal Reserve’s decision to hold rates steady has further supported market stability.
At the Stan Wong Group, we remain constructive in our outlook. We continue to focus on high-quality companies with strong balance sheets, resilient earnings, and competitive advantages in industries with limited competition. Solid corporate fundamentals are providing a strong foundation for equity valuations, despite ongoing global uncertainty. We are also identifying opportunities beyond North America. Select international markets, especially regions in Asia and Europe, and emerging markets, offer attractive valuations and benefit from more accommodative monetary policies. We are positioning portfolios to take advantage of market dislocations, where near-term volatility creates longer-term value.
While the overall market trend remains positive, short-term volatility could persist as investors digest economic data, central bank guidance, and geopolitical developments. Markets are also watching closely for greater clarity around U.S.-China trade and tariff policy. We view market pullbacks as opportunities to carefully add to high-conviction positions.
Patience and discipline remain key in navigating today’s complex investment environment. Emotional decision-making often results in missed opportunities and long-term underperformance. We continue to make thoughtful, tactical portfolio adjustments while keeping client goals in focus. A diversified, selective, and well-structured approach, anchored by a sound financial plan, remains essential for long-term success.
- Market-moving news, fast: Get the BNN Bloomberg App now
- Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/subscribe
TOP PICKS:
iShares Silver Bullion ETF (SVR TSX) The iShares Silver Bullion ETF (SVR-T) provides investors with direct, currency-hedged exposure to physical silver. Priced in Canadian dollars and hedged against U.S. dollar fluctuations, SVR-T offers a convenient way to capture silver’s price movements. Silver recently climbed above US$35 per ounce for the first time in over a decade, breaking through long-term technical resistance and reigniting investor interest. Adding to the bullish setup, the gold-to-silver ratio remains near 90:1, well above its 50-year average of 60:1. Historically, such wide gaps have preceded periods of silver outperformance. After the 2008 financial crisis, for example, the ratio peaked above 80:1 before silver prices quadrupled as the spread narrowed. While gold has rallied on macroeconomic uncertainty and central bank buying, silver has lagged, presenting a compelling value opportunity. Industrial demand is accelerating, driven by the growth of solar energy, electric vehicles, and advanced electronics, while global mine supply remains constrained. At the same time, silver offers diversification benefits, with a low correlation to equities and bonds that can help reduce overall portfolio risk. Its historical tendency to rise during periods of U.S. dollar weakness also makes it a potential hedge against inflation and currency volatility. With strong technical momentum and a supportive macro backdrop, the iShares Silver Bullion ETF (SVR-T) offers a timely and strategic way to participate in silver’s upside potential.
McKesson (MCK NYSE)
McKesson is one of North America’s largest pharmaceutical distributors and a vital link in the healthcare supply chain, providing medicines, medical products, and technology solutions to pharmacies, hospitals, and care providers. Fiscal 2026 revenue is expected to exceed US$400 billion, supported by steady prescription volumes, rising demand for specialty therapies, and growth in biosimilars. While its core distribution business remains a reliable cash generator, higher-margin segments, such as oncology and specialty care, are increasingly driving earnings growth. Strategic investments in automation, data, and digital infrastructure further strengthen its competitive advantage. In its latest quarter, McKesson beat earnings expectations and raised full-year guidance, demonstrating strong execution and resilient demand across its business. Demographic trends also support the outlook: nearly 70 per cent of Americans take at least one prescription drug daily, with more than 25 per cent taking four or more. As the population ages and chronic conditions increase, prescription drug use is expected to grow steadily, providing a long runway for volume expansion. From a technical standpoint, McKesson shares have maintained a long-term upward trend, trading within an ascending channel marked by higher highs and higher lows. As healthcare grows more complex and pharmaceutical demand rises, McKesson’s scale, infrastructure, and execution position it well to benefit. Earnings are forecast to grow at about 10 to 12 per cent compound annual rate over the coming years, reinforcing a compelling long-term investment case.
Nvidia (NVDA NASD)
Nvidia remains the undisputed leader in accelerated computing, powered by relentless global demand for AI infrastructure. Fiscal 2026 revenue is expected to exceed US$200 billion, supported by the fast growth of generative AI, large language models, and massive data centers. Its advanced graphics processors (GPUs) and unique CUDA software give Nvidia a strong advantage that competitors have yet to match. The company continues to deliver excellent results, with rising profits, healthy cash flow, and expanding opportunities beyond AI training – such as AI inference, self-driving cars, and edge computing. In its latest quarter, Nvidia beat both revenue and earnings estimates, thanks largely to strength in its data center business. Management remains cautious but optimistic, leaving room for more growth. With AI adoption still in its early stages, and cloud providers, enterprises, and governments racing to build next-generation infrastructure, Nvidia is uniquely positioned at the center of this transformative shift. Shares currently trade at a PEG ratio under 1.0x, suggesting that its rapid earnings growth is not fully reflected in its valuation. Earnings are forecasted to grow at a 34 per cent compound annual rate over the next few years, reinforcing a powerful long-term growth story.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SVR TSX | Y | Y | Y |
| MCK NYSE | Y | Y | Y |
| NVDA NASD | Y | Y | Y |
PAST PICKS: June 6, 2024
AMAZON.COM (AMZN NASD)
Then: US$185.00
Now: US$212.45
Return: 15%
Total Return: 15%
CONSTELLATION BRANDS (STZ NYSE)
Then: US$250.11
Now: US$168.13
Return: -33%
Total Return: -31%
MASTERCARD (MA NYSE)
Then: US$448.68
Now: US$586.54
Return: 31%
Total Return: 31%
Total Return Average: 5%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AMZN NASD | Y | Y | Y |
| STZ NYSE | N | N | N |
| MA NYSE | Y | Y | Y |
