Jeff Parent’s Top Picks for March 23, 2026

Jeff Parent, Senior Portfolio Manager, Castlemoore

Focus: Technical analysis

Top Picks: Great-West Lifeco, Canadian Utilities, Pembina Pipeline

MARKET OUTLOOK:

With 224 days until the next major U.S. elections the political clock is ticking. Growing numbers of the public are losing confidence in current policies, and that sentiment is beginning to show up in market indicators.

Negative trends are forming across multiple asset classes, and history tells us these patterns are difficult to reverse once established. We are likely entering another inflationary cycle — consumer spending is decelerating, and employment is softening, particularly in Canada.

Based on the weight of the evidence, market conditions point toward continued deterioration through at least the fall. And yet, there may still be an overhang of optimism from investors.

Price-to-forward earnings ratios on top S&P 500 names are only beginning to creep up. That disconnect is a warning sign.

The S&P 500 broke down from its January 2026 high of 7,002, and has since breached the critical 6,700 support level. A move toward 6,100 is possible in the near term.

Compounding the concern, speculative markets are reversing. The recent pullback in gold and silver suggests broader equity weakness or instability is ahead. This is a time for caution.

Reduce exposure to high-multiple growth names. Rotate toward value and quality. Prioritize higher-yielding common shares that can weather volatility and deliver income while we wait for clarity.

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TOP PICKS:

Great-West Lifeco (GWO TSX)

After a 10 per cent plus pullback in January, the price is consolidating around $63. Ranks well in many fundamental strategies. Not immune to a downturn, but should perform relatively well. Reduce below $59. Pays a 4.3 per cent dividend.

Canadian Utilities (CU TSX)

Coming into a buying zone of $45 to $46. Good current yield of 3.9 per cent with a long history of dividend increases. Support is at $45. Sell below $43.

Pembina Pipeline (PPL TSX)

Had good buying support after the recent earnings. Partial growth story. Robust 4.6 per cent dividend. Decent short term support at $60. Sell below $57.

PAST PICKS:

Canadian National Railway (CNR TSX)

Then: $140.05

Now: $138.35

Return: -1%

Total Return: 0.71%

Campbell’s (CPB NASD)

Then: US$31.84

Now: US$21.04

Return: -34%

Total Return: -30%

ESCO Technologies (ESE NYSE)

Then: US$181.45

Now: US$269.57

Return: 49%

Total Return: 49%

Total Return Average: 7%