Stocks are hitting record highs in Canada even as volatility picks up south of the border, with investors navigating geopolitical risks, stretched valuations in parts of technology and shifting global leadership. Momentum has remained strong, particularly in commodity-linked sectors and areas tied indirectly to artificial intelligence, such as power generation and infrastructure.
BNN Bloomberg spoke with Shiraz Ahmed, CEO of Sartorial Wealth, about how his quantitative, momentum-driven approach is shaping portfolio positioning, why global diversification has paid off, and where he sees opportunities emerging as the AI theme expands beyond headline technology names.
Key Takeaways
- Canadian stocks continue to show strong momentum following one of their best years in more than a decade, helped by commodities and geopolitical uncertainty.
- U.S. equities are experiencing higher volatility, but the longer-term trend remains intact despite near-term geopolitical and valuation concerns.
- The AI trade is highly concentrated, with broader indices appearing flat once major AI names are stripped out, increasing the risk of selective pullbacks.
- Power generation, nuclear energy and infrastructure are emerging as key beneficiaries of AI-driven data centre demand.
- Global diversification has been rewarded, with international and emerging equities outperforming as leadership rotates beyond North America.
Read the full transcript below:
ANDREW: Toronto stocks are hitting a record high this morning, while U.S. markets are under pressure amid controversy surrounding the Federal Reserve. Let’s get more from Shiraz Ahmed, CEO of Sartorial Wealth. Great to see you. You take a quantitative, mathematical view of markets and are less focused on traditional metrics like price-to-earnings ratios or company debt.
SHIRAZ: Absolutely. We take a different stance because our approach is largely driven by mathematics. Price momentum is one of our main variables, although we also look at Sharpe ratios and risk-adjusted returns.
ANDREW: Let’s start with the broader picture. If we look at the TSX hitting a new high today, what pattern are you seeing on a 10-year chart?
SHIRAZ: Right now, we’re still seeing strong positive momentum. This is something we discussed a few months ago as well. Canada is coming off what was probably its best year in about 15 years in 2025. That momentum has carried into January so far, and in the short term, given some of the geopolitical risks out there, Canada’s commodity-heavy market continues to benefit.
ANDREW: What about the U.S. market? Let’s look at the S&P 500.
SHIRAZ: The S&P 500 had a decent year last year, but relative to Canada it hasn’t performed quite as well. There are additional geopolitical concerns, including issues around Venezuela and even discussion around Greenland, which have added to uncertainty. That’s contributing to increased volatility in the U.S., but I would say the story there is far from over.
ANDREW: What about the Nasdaq 100 as a proxy for technology stocks? It’s still down from its record high in late October.
SHIRAZ: That’s right. While we don’t focus on that industry in isolation as much as broader segments, it’s important to remember how concentrated the AI story is. If you remove some of the major AI names, many of these indices are flat or even negative. So it’s not surprising the Nasdaq 100 is lower, given valuation concerns and profit-taking last fall.
ANDREW: Emerging markets had a strong year. A lower U.S. dollar can help those economies. Are you seeing momentum there as well?
SHIRAZ: Yes. That was one of our bigger winners last year. We pivoted to a larger allocation outside North America, and those international markets performed better overall. Currency gains also contributed positively.
ANDREW: Let’s turn to some individual stocks. ASML is a major global supplier of semiconductor equipment. What attracts you to that name?
SHIRAZ: They effectively have a monopoly on their EUV technology, which is used by many semiconductor manufacturers. Even though we’re a quantitative shop and not purely fundamentals-driven, ASML has a strong moat, to borrow Warren Buffett’s term. Momentum has been strong, and that makes it attractive to us.
ANDREW: Another very different name is Cameco. Nuclear investment headlines seem to appear almost daily, and the stock is near a record high.
SHIRAZ: Yes, it’s been on a strong run, which is why it’s shown up favourably in our momentum screens. We’ve held it for some time. The weighting can move depending on various factors, but we like Cameco overall. It’s also linked to the AI story through the power side, since data centres need reliable energy and nuclear is increasingly seen as a clean option.
ANDREW: Cameco’s previous record high was just above $152 in October, and it’s trading around $151 now.
SHIRAZ: Exactly. It continues to show strong positive momentum, and given Canada’s commodity-based economy, it’s a name that could remain in the headlines.
ANDREW: The electricity trade has also been in focus, with names like Constellation Energy and Vistra in the U.S. Are you still seeing promise there?
SHIRAZ: Yes. There’s a significant push to supply power to data centres, which is a major challenge. The sector has shown positive momentum, although there may be volatility at the company level rather than across the entire sector. Overall, we think there’s still runway.
ANDREW: Uber Technologies is another stock that screens well for you.
SHIRAZ: It is. Uber has become increasingly ubiquitous, much like how people say Kleenex when they mean tissue. It’s also relying less on continuous cash infusions and is becoming sustainably profitable. That combination of momentum and improving fundamentals makes it attractive for us.
ANDREW: Even though valuation isn’t your primary focus, a forward P/E of about 24 times seems reasonable to you?
SHIRAZ: Yes, especially compared with some AI-related names trading at what we would consider extreme valuations. We think Uber’s valuation is more sustainable.
ANDREW: And you think it compares favourably with rivals like DoorDash and Lyft?
SHIRAZ: Yes. We think Uber has more pricing power and scale relative to its peers, which supports our view.
ANDREW: Shiraz, great to have you on. Thanks very much.
SHIRAZ: My pleasure. Thank you.
ANDREW: Shiraz Ahmed, CEO of Sartorial Wealth.
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This BNN Bloomberg summary and transcript of the Jan. 12, 2026 interview with Shiraz Ahmed 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.
