Gordon Reid, President & CEO, Goodreid Investment Counsel
Focus: U.S. equities
Top picks: Meta, Morgan Stanley, RTX Corp
MARKET OUTLOOK:
As we enter a new year, so much is the same, but we naturally are searching for what might be different. Historical evidence tells us that coming off positive return years, investors are best served by staying with the winning trades, which include technology, financials and industrials.
While true that technology, inclusive of the communication services sector, performed very well, it would likely surprise most readers that only two of the so-called Magnificent seven stocks outperformed the S&P 500 index return in 2025.
That said, hyper-scalers, cloud companies and social network stocks offer terrific value. Goodreid’s over-weight in financial stocks has paid off handsomely, and we continue to like the space. Our love of the industrial sector has waned somewhat as valuations have become somewhat stretched in our opinion.
The beginning of 2026 comes with a great deal of market “noise”, not of the economic variety or from corporate earnings, but rather from U.S. President Trump. His thumb seems to be present on the scale in many issues, ranging from Venezuelan oil to Federal Reserve independence, to the fees credit card issuers can charge.
At Goodreid, we caution that to be reactive to the headline of the day would be damaging. President Trump’s record indicates that his bark is often worse than his bite, so contain your political opinion to discussion with family and friends and allow your investment portfolio to operate free of issues that will likely pass with time.
- Market-moving news, fast: Get the BNN Bloomberg App now
- Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/subscribe
TOP PICKS:
Meta (META NDAQ)
Meta seems to be going all in on the AI space. Mark Zuckerberg is showing his competitive stripes and has significant resources to be a major player in the space. At 21 times 2026 estimated earning, Goodreid believes there is ample room for valuation expansion on top significant organic growth.
Morgan Stanley (MS NYSE)
The banking sector was on fire in 2025, and we don’t think anything changes as the calendar flips. Investment banking activities and an impressive wealth management arm (which comprises 50 per cent of revenues), are leading the charge.
RTX Corp (RTX NYSE)
RTX has been a portfolio winner for Goodreid, but we think there is plenty left in the tank. Geo-political tensions are unlikely to abate anytime soon and the Trump suggestion that they will push for a $1.5 trillion defense budget dovetails with across-the-board NATO increases in spending. When combined with a robust commercial aerospace franchise and a reasonable valuation, RTX is attractive.
| Disclosure: | Personal | Family | Portfolio/Fund |
|---|---|---|---|
| META NDAQ | Y | N | Y |
| MS NYSE | Y | N | Y |
| RTX NYSE | Y | N | Y |
PAST PICKS: JAN. 9, 2025
Goldman Sachs (GS NYSE)
Then: US$580.02
Now: $936.17
Return: 61%
Total Return: 64%
Merck (MRK NYSE)
Then: $99.85
Now: $107.47
Return: 8%
Total Return: 11%
PulteGroup (PHM NYSE)
Then: US$110.46
Now: US$132.78
Return: 20%
Total Return: 21%
Total Return Average: 32%
| Disclosure: | Personal | Family | Portfolio/Fund |
|---|---|---|---|
| GS NYSE | Y | N | Y |
| MRK NYSE | Y | N | Y |
| PHM NYSE | N | Y | Y |
