S&P futures are edging higher after hitting an August low, as investors weigh geopolitical tensions and shifting U.S. policy toward Iran. Ongoing uncertainty and higher energy prices continue to shape sentiment and near-term volatility.
BNN Bloomberg spoke with Kyle Taylor, wealth advisor and portfolio manager at Tridelta Private Wealth, who says investors are leaning defensive while gradually deploying cash and focusing on income strategies to navigate uncertainty.
Key Takeaways
- Investors are reducing cash levels and selectively adding exposure while maintaining a defensive, income-focused approach.
- No single sector stands out as a clear buy, though energy positions are being trimmed after recent gains.
- Geopolitical-driven selloffs are typically buying opportunities unless recession risks increase.
- Prolonged Middle East tensions could lift consumer prices and weigh on demand over time.
- Weakness in tech and software tied to AI uncertainty may present opportunities in high-quality companies.
Read the full transcript below:
ANDREW: We have seen something of a rally in the markets today. However, the U.S. benchmark slumped to an August low at the end of last week. U.S. President Donald Trump said the U.S. is in talks with what he calls a new and more reasonable regime in Iran. However, he also said that military strikes on Iranian energy infrastructure, including electricity, are not off the table. Let’s get more from Kyle Taylor, wealth advisor and portfolio manager at Tridelta Private Wealth. Thanks very much indeed for joining us.
KYLE: Thank you.
ANDREW: How are you playing the current uncertainty? Have you changed your weightings?
KYLE: Well, we’ve certainly been grinding our cash levels down lower, but certainly I think we’re still very much focused on income within our equity mandates. Being defensive has allowed us greater flexibility to navigate this uncertainty and take advantage of some of that near-term noise. But, ultimately, I think we are picking up a few opportunities, but there’s nothing — there’s no one sector or cohort that is really a screaming buy to us. That said, we have taken the opportunity to trim back on some of the energy names we own, just given where they’ve climbed.
ANDREW: What did you say off the top there about your cash levels?
KYLE: We’ve been grinding our cash levels lower in recent weeks just to take advantage of some of the declines that we’ve seen in the markets. I mean, really, I think you have two camps of people in this past month. There’s the “this time it’s different” where people are going to sell the cash and put their heads in the sand until they feel better about themselves. Then there’s the camp that I tend to be more part of, which is that, ultimately, this too shall pass. The general rule of thumb, when there’s market weakness from geopolitical uncertainty or events, is just about always a buying opportunity when that weakness comes about, and we believe that the markets can handle this near-term disruption and higher energy prices in the near term. Of course, the longer this goes on, the more of a challenge it will be for the confidence of investors. But my general message is, while the downside can be tough to stick with, missing out on the eventual good days is far more painful and costly in the long term.
ANDREW: Let’s pop up maybe a 10-year chart for the S&P 500, because history does indicate that wars can hurt the market for a good while, but it comes back.
KYLE: Certainly. I still think that there are reasons for optimism this year in the stock market. Currently, we’re seeing, from a relative strength basis, that stocks may be oversold. I still think that the AI disruption and associated selloff in software stocks is creating opportunities for some great businesses. And I like to remind people that great businesses don’t suddenly stop being great businesses simply because of a conflict on the other side of the world. I think that great managers and great operators can navigate this and continue the trajectory onward over the long term.
ANDREW: You have some stock ideas for us. CN Rail — this is one you’ve been buying lately. You reckon CN Rail has been trading close to its lowest valuation in a decade.
KYLE: Yes, it’s a recent addition for us. It’s trading close to its lowest valuation in 10 years, at around 18 times earnings. Today, it’s high — and historically, it’s been around 26 times. You’re picking up a 2.6 per cent dividend at current prices. Earnings estimates had been on the decline the prior two years but have started to actually trend upwards. Importantly for us, we’ve actually noticed improved sentiment in the transportation sector, but rails have lagged, and we think the current valuation offers exposure to cyclical recovery and downside protection, should that recovery not materialize. And they’re a good example of a company that’s actually seeing some improved cash flows as well, given some of the capital expenditure plans that have come to fruition over the past year, which is bringing up some more opportunity for investment in the business, as well as potential for growing dividends and share buybacks.
ANDREW: You have another idea, Zoetis, which is the big animal health company.
KYLE: Yeah, global animal health company. They provide everything from medicines and vaccines to diagnostic services and genetic tests for household pets as well as livestock animals. They operate in over 45 countries — or service 45 countries, I could say. Another recent addition for us. They actually hit a 52-week low last week and are trading currently at their lowest valuation in the past 10 years. We think that the outlook for the animal health industry is rather bullish, with estimates suggesting $20 billion in market growth over the next decade, with Zoetis being the number one player in the space, which should help them be a long-term beneficiary. Really, I think that they have a very defensible business model. And I say that as someone who spent $3,000 on a cat earlier this year. So, yeah, 70 per cent of the revenues come from household animals. And we actually think that the COVID-era pet surge will start to translate into more veterinary visits from 2026 onward, as a lot of those pets are now at least middle-aged, which tends to drive up the cost of a lot of those animals, of course. And on top of that, too, they have a great pipeline in terms of new medications and vaccines that we think could help drive some optimism for the stock moving forward.
ANDREW: How is the cat doing? I have to ask.
KYLE: The cat is fine. Yeah, the cat survived.
ANDREW: I have one dog that’s on pills, meds, and, of course, we have to put it inside a bit of food. And her sister has to get a treat as well, and her sister is putting on weight. She’s riding the bandwagon here.
KYLE: That works. Thank you.
ANDREW: Thanks, Kyle. Kyle Taylor, wealth advisor and portfolio manager at Tridelta Private Wealth.
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This BNN Bloomberg summary and transcript of the March 30, 2026 interview with Kyle Taylor 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.
