Colin Cieszynski, Portfolio Manager & Chief Market Strategist, SIA Wealth Management
Focus: Technical analysis
Top Picks: Bombardier, Goldman Sachs, BMO Equal Weight Banks Index ETF
MARKET OUTLOOK:
Earnings season has kicked off this week with mixed results. While investors responded positively to results from Goldman Sachs and other financials, IBM’s big 25 per cent selloff following an earnings warning reminded us that valuations relative to growth remain a big question for investors as results roll out over the next several weeks.
The resumption of skirmishes between the U.S. and Iran has reignited interest in crude oil, which has climbed back up above US$80 per barrel. Gasoline and copper prices also remain elevated. Exacerbating questions about the reliability of supply of commodities through the Strait of Hormuz, trade data out of China indicates that resource demand overall remains strong.
Sector rotation has seen capital moving into financials and health care over the last month at the expense of industrials and materials. Energy has seen a resurgence this week with the oil price rebounding.
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TOP PICKS:
Bombardier (BBD.B TSX)
Aerospace stocks set at the top of the SIA Wealth Management Canadian relative strength rankings with Bombardier in first place. The shares broke out of a consolidation range in May and rallied to a new high earlier this month.
Goldman Sachs (GS NYSE)
Financials have rotated up to the top of the SIA Wealth Management U.S. Mega Cap relative strength rankings. Goldman Sachs has been one of the sector leaders moving up in the rankings. Yesterday, GS rallied to a new all-time high on the back of a positive earnings report.
BMO Equal Weight Banks Index ETF (ZEB TSX)
Canadian banks are currently the strongest group in the SIA Wealth Management Sector ETF relative strength universe. Although US banks have been getting more attention this week, Canadian banks have been outperforming their U.S. counterparts year to date.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| BBD.B TSX | N | N | Y |
| GS NYSE | N | N | Y |
| ZEB TSX | N | N | Y |
PAST PICKS: JAN. 8, 2026
First Quantum Minerals (FM TSX)
Then: $37.95
Now: $38.94
Return: 3%
Total Return: 3%
Teva Pharmaceuticals (TEVA NYSE)
Then: US$32.51
Now: US$31.65
Return: -3%
Total Return: -3%
BMO Global Gold Index ETF (ZGD TSX)
Then: $290.63
Now: $257.47
Return: -11%
Total Return: -11%
Total Return Average: -4%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| FM TSX | N | N | N |
| TEVA NYSE | N | N | Y |
| ZGD TSX | N | N | N |
