Brianne Gardner, Portfolio Manager & Senior Wealth Manager, Velocity Investment Partners, Raymond James
Focus: North American large caps
Top Picks: Celestica, Circle Internet Group, Dollarama
MARKET OUTLOOK:
Markets are still moving higher, but the tone has become more cautious. Earlier in the rebound, investors were willing to buy almost anything tied to artificial intelligence (AI), growth, or economic recovery. Now, after a strong rally from the April lows, markets are becoming more selective as valuations rise and expectations become harder to meet.
Technology and AI-related spending continue leading the market, especially across semiconductors, software, and data-center infrastructure. Corporate commentary still points to strong demand, but investors are no longer rewarding stories alone. Companies increasingly need to prove earnings growth can keep pace with the enthusiasm surrounding AI.
Another important shift is the reopening of the initial public offering (IPO) market. Several large companies are preparing to come public again, which usually reflects stronger investor confidence and improving risk appetite. While that can support sentiment, it can also absorb liquidity and signal parts of the market are becoming overheated after a rapid rally.
Geopolitics and interest rates also remain major drivers. Recent headlines around a potential U.S.-Iran ceasefire framework helped calm concerns around oil prices and inflation, while softer inflation data supported hopes that central banks may avoid becoming more aggressive from here.
In Canada, the backdrop remains relatively stable. Banks continue showing resilience, while materials and technology have quietly supported the Toronto Stock Exchange (TSX).
Our view remains constructive over the medium term, but we believe this is a market where discipline matters more than chasing momentum. We continue focusing on quality businesses with durable earnings and exposure to long-term themes while remaining prepared for volatility.
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TOP PICKS:
Celestica (CLS TSX)
We own Celestica, and it’s been one of the biggest beneficiaries of the AI infrastructure buildout. Celestica helps build the hardware behind AI and cloud infrastructure, including networking equipment, switches, and data center systems used by hyperscalers. The growth has been massive, with revenue jumping more than 50 per cent last quarter as demand for AI infrastructure and high-speed networking continued accelerating. What makes the story interesting is that this is no longer just a traditional manufacturing company. They’re moving into higher-value AI infrastructure products with better margins and stronger customer relationships. They also recently won a new co-packaged optics program with a hyperscaler customer, reinforcing how important they’re becoming in the AI supply chain. That said, expectations are now very high. The stock has rerated aggressively, and the story depends heavily on continued AI spending staying strong.
Circle Internet Group (CRCL NYSE)
We own Circle, and it’s one of the more interesting ways to play digital payments and stablecoins without directly buying crypto. Circle is the company behind USDC, the world’s second-largest stablecoin, used for payments and blockchain-based financial infrastructure. The key story right now is interest rates. Circle earns most of its revenue from the interest generated on the cash and Treasury reserves backing USD Coin (USDC). As a result, a higher-yield environment is a tailwind. With expectations for aggressive rate cuts fading, the market has become more constructive on the stock. The underlying business is also still growing quickly, with USDC circulation rising about 28 per cent year-over-year to roughly US$77 billion. We also like that Circle is expanding beyond stablecoins into payment infrastructure and enterprise partnerships with companies like Shopify and DoorDash.
Dollarama (DOL TSX)
We own Dollarama, and we continue to like it as one of the strongest long-term retail stories in Canada. Dollarama sells low-cost everyday products, and in tougher environments, that value proposition tends to become even more important for consumers. What makes the story interesting is the growth runway. They already have nearly 1,700 stores in Canada but still see room to expand meaningfully over time. The business is also becoming more international through Dollarcity in Latin America and the expansion into Australia through The Reject Shop acquisition. The market has become a bit more cautious recently because margins are facing pressure from investments, store renovations, and the Australian turnaround. For us, this remains one of the best operators in retail, with strong execution, defensive demand, and a long runway for store and earnings growth.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| CLS TSX | Y | Y | Y |
| CRCL NYSE | Y | Y | Y |
| DOL TSX | Y | Y | Y |
PAST PICKS: JUNE 16, 2025
ATS Corp (ATS TSX)
Then: $ 42.33
Now: $ 43.26
Return: 2%
Total Return: 2%
Altius Minerals (ALS TSX)
Then: $ 27.32
Now: $ 56.94
Return: 108%
Total Return: 110%
Salesforce (CRM NYSE)
Then: US$ 263.88
Now: US$ 188.30
Return: -29%
Total Return: -28%
Total Return Average: 28%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ATS TSX | Y | Y | Y |
| ALS TSX | Y | Y | Y |
| CRM NYSE | Y | Y | Y |
