Chris Blumas

The argument for lowering them is really tough, as that will stoke inflation. US unemployment for last month missed by a huge amount. If the trend of weakening employment continues, that makes the case for the potential to lower rates. Makes sense to hold off and wait and see, which is exactly what the Fed did.

Time will tell, but it is an awkward environment.

The US intervened in the yen currency market for the first time in 30 years, with the goal to keep a lid on long-term rates. The US central bank has a little more control over the shorter end of the yield curve, but less so on the longer end. The US 30-year yield is now above 5%, which is a key threshold. Not really a red flag, but more of an orange one to keep an eye on.

In a massive growth segment, with the AI infrastructure buildout. Strategically in a very good position. If you have your heart set on this one, valuation is very reasonable at below 20x PE. Yet FCF is fairly meagre, which indicates valuation is still stretched. Watch and wait.

Instead, he uses TSM for client portfolios. Valuations in the space tend to be fairly rich. So this name isn't a buy today. Watch and wait on this one too.

AI infrastructure buildout is a massive growth segment. This is the name he uses for client portfolios. Valuations in the space tend to be fairly rich. So this name isn't a buy today. Watch and wait.

Lots of negativity surrounding the spend. What's unique about this buildout is that you're seeing some companies already start to monetize. You don't know the exact ROIC because they don't break it down by projects, but a company like GOOG has already started to monetize its AI investments.

It may not be a bubble; it may be a legitimate infrastructure buildout. Similar to what happened for rail infrastructure back in the day. It's really important to focus on companies that are monetizing AI so you have good insight into how they're going to get payback on their investment.

Valuation is quite reasonable. The one thing that gets him is the competitive landscape -- uncertainty keeps him away.

There is the argument that Uber has the infrastructure, so autonomous vehicles will need to partner with it. If that plays out, it'll be good for Uber. Flipside is that contracts haven't been renewed in certain markets. Waymo is considering other options.

There are a whole bunch of companies with dual Canada-US listings. And lots of companies earn a whole bunch of money in the US, but you can buy them on the Canadian exchange. So you don't always have to shift your money, especially as the CAD is fairly weak right now.

Here's one idea. Take a look at your income names -- banks, utilities, pipelines. A lot of those tend to be fairly richly valued right now. This might be a good opportunity to reduce exposure to some of your income names and move into what's fairly inexpensive right now, and that's some of the growth names. You can access US companies within Canada, without the need to shift your money.

See his Top Picks for names that feed into that strategy.

Unique business, unique spot. Most recent quarterly results were really strong, and expectation is that will continue. Valuation is very expensive, with very low FCF yield. It's a momentum name -- as long as topline can keep up, valuation will stay strong. Once they start to miss, valuation will come off. Risk/reward is about equal, he'd pass.

Turnaround mode. Continues to be in the penalty box. Looking to redomicile to the US for greater index inclusion and become known to more US investors. Valuation is quite low. Geographically unfocused asset mix. More attractive names in the space. 

Wonderful business, very well run. Valuation flip-flops, depending on what people think of their deals. At the end of the day, this company is exceptionally good at doing acquisitions. As they've built scale, margins have exploded. Scale also lets them negotiate better pricing. Good capital allocators. Founders are still significant owners and aligned with shareholders.

One to definitely have on your Buy list. Pushing above 20x PE, really good FCF yield. Wait for a pullback.

Competitive position relative to the telecom industry in Canada isn't that unique. Not a lot of growth, and competitive pressure doesn't help. 

The one he likes in the space is RCI.B.

Likes it, but the dual-class share structure is not ideal. So much hidden value with sports assets that can be monetized. Trading at 10x PE, dividend is very well covered. Of the group, highest total return potential.

Would buy today. Very well run. Strong defense to fears about AI -- incorporating AI to offer customers more value. Really good company, though $5k is a bit rich. Good opportunity to buy more and lower your average cost base, aiming to break even over the long term.

(This can happen to any investor -- you identify a really good company, but you buy at the wrong price. Warren Buffett is no exception, and he's bought more when the fundamentals are still intact.) The one situation where this doesn't work is with a really levered company that can go bankrupt. But that's not the case with CSU; you can buy more with confidence.

For income-focused investors, and that thesis still remains very strong. Very low valuation, great growth prospects, well-covered dividend. Continue to hold, or even buy more today.