Chris Thom, CEO & Portfolio Manager, Moat Financial
Focus: North American equities and options
Top picks: Lululemon, Teck Resources, Canadian Natural Resources
MARKET OUTLOOK:
We remain cautiously optimistic. Central banks in both Canada and the U.S. are unlikely to cut rates with markets at all time highs on both sides of the border and inflation not going away. The worst appears to be behind us with regards to tariff uncertainty as more countries put trade deals together with U.S. President Donald Trump. Recession fears have eased, and the economy continues to show resilience.
Valuations in certain sectors remain stretched, but opportunities still exist. We’re focused on high-quality businesses trading at reasonable valuations, especially those with strong economic moats. There are still many opportunities to generate returns selling covered calls and cash covered puts.
While we don’t expect a straight path higher, the backdrop remains constructive for long-term investors. Staying diversified, risk-aware, and opportunistic will be key.
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TOP PICKS:
Lululemon (LULU NASD)
Teck Resources (TECK.B TSX)
Canadian Natural Resources (CNQ TSX)
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| LULU NASD | N | Y | Y |
| TECK.B TSX | Y | Y | Y |
| CNQ TSX | Y | Y | Y |
PAST PICKS: February 11, 2025
Suncor (SU TSX)
Then: $58.05
Now: $54.56
Return: -6%
Total Return: -4%
General Motors (GM NYSE)
Then: US$46.70
Now: US$53.55
Return: 15%
Total Return: 15%
Cleveland Cliffs (CLF NSYE)
Then: US$11.30
Now: US$10.34
Return: -8%
Total Return: -8%
Total Return Average: 1%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SU TSX | Y | Y | Y |
| GM NYSE | Y | Y | Y |
| CLF NSYE | Y | Y | Y |
