Inflation is reshaping global markets, and Canada may be uniquely positioned to benefit. Veteran value investor Kim Shannon, Founder and Co-Chief Investment Officer of Sionna Investment Managers, believes we're only five years into an inflationary cycle that could last another 15 years or longer. History suggests Canadian stocks have a significant advantage in this environment. When inflation rises above 4%, Canada has historically outperformed the U.S. by an average of 8%. After correctly predicting the TSX would outperform the S&P 500 last year, Shannon explains why she believes the golden era for value investing is far from over, why rising bond yields could put pressure on expensive growth stocks, and where she's finding opportunities in Canadian equities despite the market's impressive rally.
In the Mailbag, Shannon weighs in on whether Cenovus Energy (CVE.TO) still has room to run after doubling in value, whether Canadian energy stocks can continue their rally, and if Canadian banks like Bank of Nova Scotia (BNS.TO) and TD Bank (TD.TO) have become too expensive. She also discusses why Fairfax Financial (FFH.TO) could offer significant upside, whether Berkshire Hathaway (BRK.B) remains attractive, the AI disruption fears weighing on engineering firms WSP Global (WSP.TO) and Stantec (STN.TO), and whether rising bond yields are creating opportunities in pipelines and telecom stocks.
In Pro Picks, Shannon reveals three Canadian stocks she believes offer significant upside in an inflationary world. She's sticking with Barrick Mining (ABX.TO), a pick from last year that's already gained 47%, but which she believes remains deeply undervalued thanks to one of the world's most promising gold discoveries. She's also finding opportunity in the wreckage of the AI-driven software selloff, making the case for CGI (GIB.A.TO), and sees a potential turnaround in beaten-down utility Algonquin Power & Utilities (AQN.TO), which she believes could climb from roughly $7 to $12 a share. Plus, we revisit her stellar picks from last year, including Bank of Nova Scotia (BNS.TO), up 52%, and Cenovus Energy (CVE.TO), which has doubled, to see what's behind those gains and whether there's still upside ahead.
Timestamps
0:00 Trailer
2:15 Intro
2:55 Is it still a golden era for value investors?
6:27 How inflation affects value stocks and Canadian equities
8:22 Is Canada still cheap after its recent gains?
9:36 Bond yields, stagflation, and market risk
12:48 Value investing, dividends, and income
15:51 ITM Mailbag: Is Cenovus still a buy? (CVE)
19:36 Cenovus, oil supply, and Canada’s energy outlook
22:05 Canadian bank valuations and portfolio positioning (TD, BNS)
26:13 Life insurers and Fairfax (FFH)
29:10 Berkshire Hathaway and Kim’s Warren Buffett story (BRK.B)
33:37 Engineering stocks, AI, and value traps (WSP, STN)
37:11 Pipelines: opportunity or caution?
38:53 Past & Pro Picks: (ABX, GIB.A, AQN)
53:57 The Closing Bell: Kim’s favourite ways to unwind
55:51 Episode wrap-up and what’s next
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The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice.The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.
In the Money delivers expert stock picks, actionable ideas, and timely money management tips. Hosted by business journalist Amber Kanwar, each episode features interviews with top portfolio managers who suggest ways to achieve good returns. Covering everything from ETFs and Canadian stocks to global investing trends, dividend strategies, and risk management, this show is made for DIY investors, stock market enthusiasts, and anyone looking to sharpen their financial strategy.
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