Cole Kachur

We've seen economic data really start to slow down. The government's being a bit slow on rate cuts, and that could be an increased risk to investors, but probably not for another year or so. As some of these numbers come down, it means a higher likelihood of rate cuts, which the market's pricing in right now.

We're in one of those weird markets where poor economic data is probably good for investors; it means rate cuts are probably coming, and stocks should move up if that's the case.

That conundrum does make it difficult for the Fed to deliver on rate cuts. Some inflation has proven to be a lot stickier than traditionally expected. The hope is that data on the price side gets revised down as has a lot of other data. Something to monitor over the next few months. 

He expects that inflation and pricing points will start to fall, opening up the avenue to rate cuts.

Without a doubt, it hasn't been a broad-based rally. Mega-cap companies and those in AI are the leaders, and he expects this to continue. Later in the year, perhaps in the last quarter, we'll see a bit of evening out. So maybe some of the small caps and underperformers will catch a bid and move up.

Realistically, the top-performing companies continue to do so. It makes it easier from an investment perspective, because you don't necessarily have to go chasing too far to get returns. You can own the S&P 500 or some of the mega-cap ETFs and, assuming you get in when they're not too elevated, you should be able to make profits through the rest of the year.

While history doesn't repeat itself, it often rhymes. Normally, when markets are as strong as they have been in the US for the first half of the year, that should continue over the last half. Possibility for positive returns from now until the end of the year is quite high. His target for the S&P 500 would be somewhere between 5800-6000, which means 8% or so in upside gains.

It will still come from the leaders that have been paving the way so far. Traditionally in a bull market, you can just keep buying the winners because they continue to perform the best. So he'd be looking at mega-caps, chips, and AI. Some financials are starting to show a few interesting characteristics.

Don't overthink it. Look at what's been working, and you can follow that template for the next 6-12 months.

Economic indicator. As the economy weakens, particularly in Canada, stocks come down. Stocks are forward looking, so this is a view of the next 12-24 months. Can be a core holding. May drift lower. Around $160 a good place to start accumulating; won't shoot up, so you can take your time. Over time, most likely will continue to appreciate.

Performed very well, an outlier to most Canadian tech. Chart moves up, consolidates, and now it's legged up. Will probably consolidate, growth won't be the same as in past year or so. Over time, will continue to be a solid name. See his Past Top Picks.

Interesting that stock price has moved up significantly but, because of earnings growth, the multiple hasn't gone crazy. Still 12 months of runway, as long as hit targets with strong forward guidance. High demand for new chips. Wait for a pullback later this summer. Core holding if you plan to hold for 2 years.

With a high stock price comes high expectations. Must continue to deliver on quarterly earnings. Will be a major commodity and move like one, so more fluctuations. 

If he was going to own national banks, he'd most likely own RY or NA. And if not, then the ZWB strategy is a good one; covered calls give you more upside; yield's around 7.5%; pretty good income stream.

Not a ton of growth in the Canadian market, and not a ton of growth in Canadian banks. Own them for the income more than upside growth.

If he was going to own national banks, he'd most likely own RY or NA. And if not, then the ZWB strategy is a good one; covered calls give you more upside; yield's around 7.5%; pretty good income stream.

Not a ton of growth in the Canadian market, and not a ton of growth in Canadian banks. Own them for the income more than upside growth.

If he was going to own national banks, he'd most likely own RY or NA. And if not, then the ZWB strategy is a good one; covered calls give you more upside; yield's around 7.5%; pretty good income stream.

Not a ton of growth in the Canadian market, and not a ton of growth in Canadian banks. Own them for the income more than upside growth.

Reported earnings, stock came down. Will remain in penalty box for a couple of quarters. In a good sector, but continues to make missteps. Value trap right now. Over time should trend back up to $70, but you might be waiting a while.

Gets lumped in with WBA, but they're different businesses. Not keen on either right now, but he'd have a slight preference for CVS, as he knows it better.

In lower interest rate environment, growth will generally outperform value. Might get periods of sector rotation, but growth will probably outperform in next 6-12 months.

Small cap. It would move with a major catalyst like institutional interest, a major contract, or a merger. Otherwise, it's just not on the radar. People own these hoping for a home run, but have to look at your opportunity cost.

(Note the short timeframe.) At some point the market has to broaden out, and names other than mega-caps have to participate. Hasn't worked yet. Not the best place for new capital. Late October to January/February should see more participation.