Markets gained as optimism built around a potential end to the U.S. government shutdown and easing post-COVID distortions in key sectors. While consumer spending remains under pressure, investors are turning to long-term opportunities in AI and industrial plays.
BNN Bloomberg spoke with Jamie Murray, president of The Murray Wealth Group, who said the current correction reflects a healthy normalization of margins and hiring after years of stimulus. He sees opportunities in select sectors, highlighting Chemtrade and Aritzia as top stock ideas heading into 2025.
Key Takeaways
- Market corrections show a healthy unwinding of stimulus-era excesses, particularly in consumer-facing sectors.
- Student loan repayments and weak hiring continue to weigh on low- to mid-income consumers.
- Trump’s proposed US$2,000 stimulus cheques could temporarily boost spending but worsen deficit concerns.
- Chemtrade offers steady growth potential through its expanding water treatment business and strong cash flow.
- Aritzia’s momentum continues with strong data on U.S. demand and potential to beat holiday sales estimates.
Read the full transcript below:
ANDREW: We may be moving toward an end to the U.S. government shutdown. Let’s get a sense of where markets are headed toward year-end. We’re joined by Jamie Murray, president of The Murray Wealth Group. Jamie, great to see you. Thanks for joining us.
JAMIE: Thanks for having me.
ANDREW: Just looking back, we’re well through earnings season now. What themes have emerged for you?
JAMIE: We’ve seen a continuation of many of the trends from the past two or three years. Consumers, particularly in the low- to middle-income range, are still struggling. Some of the recent changes the Trump administration has brought in, such as restarting student loan payments, are having an effect. Low-income lenders have posted weak earnings this season and their share prices are tumbling. That weakness is spilling over into the broader economy — we’re seeing softness in casual and fast-casual restaurants, housing is weakening, and there’s been a lot of damage in those stocks. It’s really a continuation of the struggle for lower- and middle-class consumers. On the flip side, the AI trade continues to drive results, with companies like the Magnificent Seven — Amazon and Google, for example — pushing those stocks to new highs. We’re seeing tech stocks rally again this morning.
ANDREW: It’s interesting that the hangover from COVID has lasted so long — inflated spending back then, and consumers taking on too much debt.
JAMIE: Exactly. A lot of this stems from the stimulus and hiring we saw through 2020, 2021 and even into 2022. It’s still being unwound. Companies aren’t really hiring right now; the labour market is weak in terms of new hires. Many firms realized they over-hired, and now they’re working that off. We’re seeing large-scale layoffs, like Amazon’s recent cut of more than 10,000 jobs. At the same time, new technologies and AI efficiencies are reducing demand for workers, while tariffs have added uncertainty. All this is leaving the job market stuck, which isn’t helping consumer confidence.
ANDREW: President Trump has floated the idea again of sending Americans cheques as their share of tariff revenue — apparently US$2,000 — though he’d need congressional approval.
JAMIE: Yes, that idea was floated yesterday, but there are no details yet. They’ve already walked it back somewhat — whether it would be a cheque, tax cuts, or another form of stimulus remains unclear. This is likely one reason gold is rallying today. From a deficit and debt-control perspective, giving away money does the opposite. Budget hawks will see this as more of the same. It won’t help inflation over the medium or long term, though it could juice the markets in the short term by putting a bit more cash in consumers’ pockets.
ANDREW: What’s your feeling about the AI trade right now? Are you wary of it, Jamie?
JAMIE: No, we’re still bullish on it long term. We like parts of the Magnificent Seven — Google, Amazon, Microsoft and Meta, despite their capital spending plans. On the chip side, we like Broadcom, Qualcomm and Nvidia. We think this is a good entry point for the trade. Some of the air has come out of the more speculative areas. Quantum computing and satellite space companies have pulled back 20 to 30 per cent in recent weeks. On the crypto side, Coinbase is down about 25 per cent in the past month, and Circle, another big player in stablecoins, has fallen from highs near $270 to below $100. There’s been a lot of air let out of speculative names, but underlying demand for AI infrastructure keeps growing. Nvidia, for instance, is asking chipmaker TSMC to expand capacity for its newest generation of chips. There’s still plenty of momentum for AI buildouts, and we see many more use cases to come.
ANDREW: You have a couple of stock ideas. Let’s start with Chemtrade. They sell a variety of chemicals, including substances used in water treatment.
JAMIE: Yes, Chemtrade is a timely one. They report earnings tomorrow night. The stock hit a 52-week high on Friday. They sell a variety of specialty chemicals, but what we really like is their growing water treatment business in the United States. It’s a large market — every municipality and food producer needs clean water and wastewater treatment. Chemtrade recently completed its first major acquisition in more than five years in this area. The company trades at about five times EBITDA, pays a five per cent dividend, and is using its strong free cash flow to buy back stock while growing earnings. At these valuations, it’s very accretive to continue dividends, buybacks and growth. We think Chemtrade could generate around a 15 per cent annual return over the next three or four years.
ANDREW: And Aritzia — my screen shows they’re expected to report on New Year’s Eve, which seems odd. In any case, you like the look of Aritzia shares, which are up almost 80 per cent this year.
JAMIE: Yes, we’ve been long-term bulls on Aritzia, and it’s had a phenomenal year. They’ll likely report in early January — probably not on New Year’s Eve, I hope. What excites us is the real-time data on consumer demand. Google Trends data in both Canada and the U.S. show searches for Aritzia up more than 50 per cent year-over-year. Bloomberg credit card data also show strong spending in U.S. stores. The average analyst expects U.S. revenue growth of 30 per cent this quarter, but those measures suggest it could be closer to 50 per cent. It’s not a perfect correlation, but it’s a strong signal they may beat estimates when they report around the New Year.
ANDREW: Okay, I’ll check when they actually report. Jamie, thank you very much. Jamie Murray kicking off the show for us — he’s president of The Murray Wealth Group.
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This BNN Bloomberg summary and transcript of the Nov. 10, 2025 interview with Jamie Murray are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
