Stan Wong, Portfolio Manager at Scotia Wealth Management
Focus: North American large caps and exchange-traded funds (ETFs)
Top Picks: Nvidia, GE Vernova, Invesco DB Base Metals Fund
MARKET OUTLOOK:
Global equity markets are moving through a period defined by geopolitical uncertainty, resilient economic activity, and ongoing shifts in supply chains and capital spending. While recent headlines have driven bouts of volatility, the recovery in equities has been remarkable. U.S. stocks rallied in April, and the rally has continued into May as investors looked past geopolitical noise and refocused on earnings, economic resilience, and a moderation in oil prices from recent highs.
That rebound reinforces a broader historical pattern: geopolitical shocks often drive short-term swings in sentiment, but they rarely have lasting effects on long-term investment outcomes. For long-term investors, periods of uncertainty often create opportunities to add selectively to high-quality businesses when fear temporarily outweighs fundamentals.
The broader economic backdrop also remains constructive. Recent U.S. data points to a resilient consumer backdrop, while corporate fundamentals remain supportive, with Bloomberg consensus earnings growth forecasts for the S&P 500 now pointing to over 21 per cent for this year and 14 per cent for next year. That outlook continues to be driven by investment in artificial intelligence, digital infrastructure, electrification, and the ongoing shift toward near-shoring, re-shoring, and supply-chain realignment.
Near-term risks remain, including energy market volatility, geopolitical uncertainty, and the approaching U.S. midterm election cycle. Meanwhile, money market fund assets remain near record levels, representing a significant pool of capital that could gradually rotate back into risk assets over time.
At The Stan Wong Group, we continue to focus on high-quality large-cap equities, emphasizing durable cash flow, competitive advantages, and strong earnings growth within portfolios aligned with each client’s broader total wealth plan.
- 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:
Nvidia (NVDA NASDAQ)
Nvidia is the arms dealer of the artificial intelligence (AI) buildout and one of the clearest beneficiaries of the global expansion in artificial intelligence infrastructure. Nvidia provides much of the essential technology that powers today’s AI systems. Its chips, systems, and networking products are central to training and deploying advanced AI models, giving the company broad exposure across hyperscalers, cloud providers, and enterprise customers rather than dependence on a single end-market winner. The scale of the opportunity remains significant, with major technology companies expected to spend roughly US$750 billion on AI infrastructure in 2026 alone. Fiscal 2027 revenue is projected at nearly US$370 billion, underscoring the scale of Nvidia’s growth runway.
What sets Nvidia apart is its market leadership, powerful software ecosystem, and rapid pace of innovation. The company is not simply selling chips; it is supplying much of the computing infrastructure behind today’s AI systems. That gives Nvidia a meaningful competitive advantage as customers continue increasing spending on training, inference, and next-generation AI workloads.
Demand for Nvidia’s next-generation systems remains strong, while the broader backdrop for AI infrastructure investment continues to improve. Analyst estimates are calling for earnings growth of more than 45 per cent over the next few years, reinforcing the company’s powerful momentum. That outlook is backed by an exceptional track record, with earnings per share having compounded at more than 50 per cent annually over the past five years. With the PEG ratio still under 0.6 times, the stock appears inexpensive relative to its growth prospects.
GE Vernova (GEV NYSE)
GE Vernova is a leading power and electrification company with major exposure to gas turbines, grid equipment, and related infrastructure that is becoming increasingly important as electricity demand rises. We view GE Vernova as a beneficiary of several powerful trends, including AI-driven data-centre growth, grid modernization, and the broader need for more reliable and resilient power systems. The company is expected to generate fiscal 2026 revenue of over US$45 billion, giving it meaningful scale in one of the most important infrastructure buildouts currently underway.
What makes GE Vernova particularly compelling is its position at the intersection of power generation and grid infrastructure. The International Energy Agency (IEA) expects U.S. data centres to account for nearly half of electricity demand growth between now and 2030, reinforcing the need for more generation capacity, greater transmission investment, and additional grid equipment. GE Vernova’s backlog has grown to approximately US$163 billion, equivalent to nearly four years of revenue based on current 2026 sales expectations. In our view, that provides strong visibility, reinforces the durability of demand, and highlights the scale of the company’s opportunity.
Demand for gas turbines and electrification equipment is being driven by AI-related data-centre expansion and broader grid investment. The earnings outlook also remains compelling, with analysts projecting strong double-digit earnings growth going forward as backlog, operating leverage, and demand continue to improve. In our view, GE Vernova remains one of the most direct ways to invest in the power side of the AI and electrification buildout.
Invesco DB Base Metals Fund (DBB NYSE)
The Invesco DB Base Metals Fund provides targeted exposure to industrial metals, primarily through futures linked to copper, aluminum, and zinc. We view DBB as a direct way to participate in the long-term buildout of electrification, infrastructure, and industrial demand without taking on the company-specific risks that come with individual mining stocks.
What makes DBB compelling is its exposure to metals that sit at the centre of several important global themes. Copper is essential to power grids, renewable energy, electric vehicles, and data-centre infrastructure, while aluminum and zinc remain important across construction, transportation, and manufacturing. In our view, DBB also stands to benefit from near-shoring and re-shoring trends, as the shift toward more localized and regional supply chains requires significant investment in factories, logistics networks, industrial facilities, and supporting infrastructure.
The backdrop for base metals has also been improving. While performance across precious and base metals has been more balanced recently, stronger growth expectations and rising investment in electrification, infrastructure, and industrial rebuilding could continue to support base metals. Prices have already shown improving momentum, with copper recently hitting new highs, reinforcing the strength of the trend. For investors seeking diversified commodity exposure tied to several long-term industrial themes, DBB offers a straightforward way to participate.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| NVDA NASDAQ | Y | Y | Y |
| GEV NYSE | Y | Y | Y |
| DBB NYSE | Y | Y | Y |
PAST PICKS: MAY 7, 2025
iShares Core MSCI EAFE ETF (IEFA NYSE)
Then: US$79.72
Now: US$97.03
Return: 22%
Total Return: 26%
MercadoLibre (MELI NASDAQ)
Then: US$2267.09
Now: US$1557.07
Return: -31%
Total Return: -31%
Visa (V NYSE)
Then: US$349.85
Now: US$321.47
Return: -8%
Total Return: -7%
Total Return Average: -4%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| IEFA NYSE | Y | Y | Y |
| MELI NASDAQ | Y | Y | Y |
| V NYSE | N | N | N |
