David Burrows

Analysts come into the year perhaps overly optimistic. We get to the end of August, and they say "Oh boy, I better cut back my estimates." Seasonally, we've seen a lot of weakness at this time of year. But that's in every year.

This year, analysts took estimates down pretty sharply in Q1 and Q2. They've now been revising up later in the year. That's one thing that's different.

Second thing is, the market came in on a pretty good footing into the middle of August. That makes it different as well. In years when the market's come in on pretty solid footing, Q3 doesn't wind up being so bad.

That being said, he generally comes into this time of the year with 5-7% cash. Global markets are behaving really well. Canadian markets are, too. But you have to address the fact that markets can be sloppy from the end of August till the end of October.

If you look at the revisions that have been taking place over the last month, a little over 60% of them have been higher. Revisions are going higher in Q4 of this year and in Q1 of 2026. That's positive. 

There are sectors where we're seeing that. Financials, industrials, tech, and communications show this trend. But healthcare is going the other way. So it's sector by sector. There are definitely haves and have nots in the market right now.

He's continued to add positions in global markets, as they look really constructive. And he has more Canada than he'd typically have. Canadian market is solidly outperforming the US. Breadth of stocks performing well is better in Canada than in the US.

We're in a market where liquidity is of value. In the private equity market, there have been difficulties getting deals liquidated. He's less interested in the area until the market for liquidating deals opens up.

In friendly jurisdictions. Gold has been consolidating, and so has this stock. Some production from Manitoba mine has been lower grade, but that should pick up over the next 3 quarters. Gold producers have started to outperform the metal, which tells you we're in a bull market.

One of his basic tenets is that if a stock isn't behaving the way you think it should based on what you think you know, then assume you might be missing something. You need discipline around selling a position. He wants to own the leading companies fundamentally and technically. 

We are in a seasonally weak period for gas; wait for that to firm up before putting $$ to work. In early spring he was 12% energy, now down to 6%. TOU trading better than only 19% of companies in the S&P, relatively weak. Breadth in energy sector has been weak. Will turn around at some point, but can't say when.

Very significant drop in copper price recently, due to US tariffs being clarified. Yet copper stocks were remarkably resilient. 

This name has wonderful long-life assets. Trading above 50-, 150-, and 200-day MAs. Not strongest copper stock technically, but technicals are fine. Great company with history of raising dividend over time. If inflation rises tomorrow, they can put prices up. See his Top Picks.

Financials are his biggest weight by far in portfolios -- in Canada, US, and globally. Especially likes banking. Stock's behaving exceedingly well, better than 85% of S&P companies in last 52 weeks. Actively buying back stock. Dividend growth story. Deal offers lots of opportunity for synergies. Likes the sector, and this name is outperforming.

Likes materials, likes copper. Significant iron ore component (close to 60%), and iron ore hasn't been as strong. Asia is getting better, and China is strengthening. So that's positive. Long-term chart is very attractive. Trading below 200-week MA, he'd like to see it break out; if it can trade north of $65, thinks it would. Solid dividends and special dividends. Big cashflow. Might be just a bit early.

See his Top Picks.

Transport stocks in general have been weak. One of the weakest stocks in the sector. Execution problems. He's the last guy to try to pick a bottom. Yield is 7%, without huge coverage. Doesn't expect dividend cut, but doesn't inspire confidence when entire earnings go to pay the dividend. Stay away.

Pretty crowded trade. They are good companies, but everybody owns them. Much better risk/reward coming from some other sectors. Multiple's not cheap. 

A dynamite company. Better on its own than before the spinoff. Doing well, partly because maintenance business is very strong in jet engines. Newer generation of jet engines that's coming will do very well.

Just had a nice little pullback, but long-term chart looks great. Backlog for turbines is deep, being sold into natural gas and nuclear plants.

A very smart business friend of his told him: "When you buy a natural resource company, you're buying an option on what they have in the ground. You don't know when a commodity bull market will come, but you know there will be one, and you need to know they'll be there when it happens."

Third-lowest-cost major oil producer, and the lowest within Canada. Efficient. Long-life reserves of 25 years. Paying down debt to a level where all cashflow will be returned to shareholders. Dividend grows over 20% a year, which is what you want with a rising cost of living. Find him another oil company that's performed like this in a tough environment.

We've moved from a disinflationary (hedge with bonds) world to a reinflationary one (hedge with gold). Great hedge, under-owned asset. Not behaving the same as stocks. Thinks we're in the first leg of a 10-year bull market.