Dan Rohinton, Vice President & Portfolio Manager, iA Global Asset Management
Focus: Canadian & Global large caps
Top picks: Visa, Amazon, Linde
MARKET OUTLOOK:
We’re heading into 2026 with cautious optimism.
The S&P 500 just posted its fourth straight year of double-digit returns, so valuations are elevated. But the underlying setup still looks decent. Earnings growth should come in around 14 to 15 per cent for the year.
The U.S. Federal Reserve has room to cut from the 3.5 to 3.75 per cent range if needed. And the policy mix out of Washington looks market-friendly for now.
AI infrastructure spending remains the big driver. We’re seeing early signs of a broadening market beyond the mega-caps, which is healthy. That said, with valuations where they are, index-level returns will probably be more modest than what we saw in 2024 and 2025. Stock selection matters more this year.
We like companies with pricing power, strong cash generation, and exposure to secular growth themes. The setup rewards patience and discipline.
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TOP PICKS:
Visa (V NYSE)
The global shift from cash to digital payments still has a long runway.
Visa sits at the centre of that trend with unmatched scale and network effects. Margins are exceptional and the business model is extremely capital-light. They’re making smart moves into stablecoins and real-time payments which opens up new growth avenues.
Amazon.com (AMZN NDAQ)
Amazon lagged the market in 2025 which creates an opportunity. Amazon Web Services reaccelerated and there’s a massive backlog of customers waiting for capacity.
The AI infrastructure investments are paying off. Retail and advertising continue to compound nicely. This is a quality compounder at a reasonable price.
Linde (LIN NDAQ)
Linde pulled back about 10 per cent from its highs on soft European volumes, which creates an attractive entry point. They have a large project backlog with blue-chip customers. The business model is sticky with long-term contracts and high switching costs. It is well-positioned for the energy transition through hydrogen and carbon capture.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| V NYSE | N | N | Y |
| AMZN NASD | N | N | Y |
| LIN NASD | N | N | Y |
PAST PICKS: JAN. 3, 2025
UnitedHealth (UNH NYSE)
Then: US$513.00
Now: US$328.86
Return: -36%
Total Return: -34%
Waste Connections (WCN NYSE)
Then: US$170.93
Now: US$174.73
Return: 2%
Total Return: 3%
Microsoft (MSFT NDAQ)
Then: US$423.35
Now: US$483.26
Return: 14%
Total Return: 15%
Total Return Average: 5%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| UNH NYSE | N | N | Y |
| WCN NYSE | N | N | Y |
| MSFT NDAQ | N | N | Y |
