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November 17, 2025
Our Portfolio Manager, Sam LaBell, joined BNN Bloomberg to discuss the market pullback and his cautious approach to tech stocks.
“We’re living through a very unusual period here. We’ve had a [U.S.] government shutdown take away all of the economic data that we usually rely on,” Sam said. “With that uncertainty, it’s hard to tell what’s actually going on in the underlying economy.”
“The market is rightly thinking, if GDP slows, what about all these high valuations for tech companies? Are the income flows into equities going to slow?”
“Fundamentally, if there’s no cash moving into the markets or cash is retreating from the markets, then it’s really hard to sustain things that are mostly based on hopes and dreams about where we’ll be in 10 years in the tech world.”
In the coming days, we will receive earnings reports from major retailers with quarters ending October 31, as well as the outlook for their Q4s. However, it will be difficult to determine whether any weakness is caused by the government shutdown or a broader economic malaise.
“The uncertainty isn’t good for markets. Here, you might be dialing back risk on the lack of data and the lack of confidence on what might happen in the next couple of months.”
He also discussed why he likes Brookfield Infrastructure Partners LP (NYSE: BIP), Bombardier Inc. (TSX: BBD.b) and Canadian Pacific Kansas City Ltd. (NYSE, TSX: CP).