Energy and materials are fueling market gains, while disciplined sector positioning and strong dividend growth continue to drive portfolio outperformance against benchmarks.
Key Points:
Resource Producers Showing Leadership
- Energy and materials stocks, including Imperial Oil and Cameco, are in early stage bull markets with strong price action and rising relative strength. These companies are supported by free cash flow, low debt, and consistent shareholder returns.
Breadth Continues to Improve
- More than 50% of stocks in global markets are now in uptrends, up from 19% in April. Leadership remains concentrated in industrials, financials, and materials—key signs of a healthy market environment and a healthy economy.
Mixed Signals in Technology
- Semiconductors and large-cap tech leaders like Nvidia and Broadcom are performing well, but NASDAQ breadth has softened slightly. The team is watching internals closely for confirmation.
Defensive Sectors Under Pressure
- Healthcare, REITs, utilities, and consumer staples continue to lag in both price and relative strength. These areas remain significant underweight across portfolios.
Dividend Growth Supports Income Portfolios
- Dividend growth across income holdings in our Tactical Income mandate is 12.14% over the past year—well above inflation. Exposure remains focused on companies with strong cash flows and growing payout histories.
Strong Portfolio Performance
- Portfolios continue to outperform benchmarks since March 2023. Equity, income, balanced, and global strategies are all delivering solid returns, driven by disciplined sector positioning. Macro portfolio is providing a hedge against inflation.
US Dollar Weakness Supports Commodities
- The US dollar remains in a downtrend despite recent bounces. This supports strength in copper and other resource equities, which remain a key area of exposure.
Bullish Outlook with Vigilance
- Sentiment and breadth models remain constructive for equities and commodities. The team continues to monitor earnings revisions, tariff data, and breadth for any signs of deterioration that could prompt a defensive shift.