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July 4, 2025
Our Portfolio Manager, Sam LaBell, appeared on BNN Bloomberg’s show, The Close, to discuss his take on why the markets are on a bullish run despite tariff uncertainty.
“I would point to the fact that this ‘Big Beautiful Bill’ that they signed in the U.S. is at its core a stimulus bill,” Sam said. “We’re looking at a situation where the U.S. is going to continue to run deficits for a long time. Out in the forecast period, you’re looking at 6%-7% of GDP deficits. That’s a lot of stimulus into the economy.”
As to why the markets aren’t as nervous about tariffs as they were previously, Sam theorizes that savings rates are down in the U.S., so consumers are spending more, even as consumer sentiment is poor. Sam also notes that U.S. consumers poured money into the markets at a record rate in Q1-F25. “There is a confidence in stocks that hasn’t been shaken, and it’s possible that tariffs will not shake that confidence.”
“If you had a 10% tariff on all imports across the board, it’s not going to kill consumption,” he added. “It’s not as much of a disaster as you might think.”
One of Sam’s favoured stocks now is Alimentation Couche-Tard Inc. (TSX: ATD). “Given that we have a middle-of-the-road view on where the economy is headed, we like some of the beaten-up names that are value picks,” he said. Some investors have disapproved of Alimentation Couche-Tard’s attempt to buy Seven & i Holdings Ltd., owner of 7-Eleven. But Sam likes the stock, whether the deal closes or not. “We think it has gotten into value territory here. It is trading at about 20 times free cash flow. It is a solid business.”
Watch the replay: Alimentation Couche-Tard fundamentally a good company: LaBell (Sam’s appearance starts at 2:15).