Imagine waking up to a world where the stock market isn't just bouncing back—it's reinventing itself with stunning regularity, turning yesterday's 'impossible' triumphs into today's everyday realities. That's the electrifying pulse of today's market roundup, where analysts are reshaping portfolios and challenging our notions of what's predictable in investing. But here's where it gets controversial: Are we truly entering an era of unstoppable progress, or is this just another bubble waiting to burst? Stick around as we dive into the latest shifts from RBC, insights from Evercore, and more—because the part most people miss is how these changes could redefine your investment strategy for years to come.
Let's kick things off with a daily digest of research and analysis from The Globe and Mail's market strategist, Scott Barlow. We're talking about the RBC Capital Markets analyst Bish Koziol, who just shook up his renowned Top 40 list of domestic stocks with a dozen adjustments. For beginners trying to wrap their heads around this, think of it as a curated 'dream team' of Canadian stocks that Koziol believes will outperform the broader market. And guess what? His portfolio is already proving its worth.
In September, the RBC Canada Overall Top 40 Portfolio delivered a solid 5.7% gain, edging out the S&P/TSX Composite's 5.4% rise. Over the year so far, it's soared by 40.0%, dwarfing the benchmark's 23.9% return. Leading the charge were materials stocks, which jumped 16.9%. Interestingly, three out of the six stocks Koziol sold this month saw their value scores deteriorate, signaling potential red flags for investors. On the flip side, his new additions—Eldorado Gold and Nuvista Energy—shone with improved growth and predictability metrics, making them standouts for long-term stability. This isn't just number-crunching; it's a real-world example of how analysts weigh factors like sector trends and individual stock health to guide decisions, helping everyday investors like you spot opportunities in a volatile market.
So, what exactly changed? Koziol welcomed Gildan Activewear Inc., Centerra Gold Inc., Eldorado Gold Corp., Russell Metals Inc., Methanex Corp., and Nuvista Energy Ltd. into the fold. Meanwhile, he bid farewell to Iamgold Corp., Saputo Inc., Bank of Montreal, Paramount Resources Ltd., Dundee Precious Metals Inc., and Keyera Corp. These moves reflect strategic pivots, perhaps responding to shifts in commodity prices or company fundamentals—key lessons for novices: always check why analysts add or drop stocks to understand the bigger picture.
Curious about the full lineup now? Here's the updated Top 40 list for your reference: Canadian Natural Resources Ltd., Pason Systems Inc., Ovintiv Inc., Trican Well Service Ltd., Suncor Energy Inc., Nuvista Energy Ltd., Cascades Inc., Stella Jones Inc., Silvercorp Metals Inc., Centerra Gold Inc., Hudbay Minerals Inc., CCL Industries Inc., Eldorado Gold Corp., Methanex Corporation, Aecon Group Inc., Russell Metals Inc., Ag Growth International Inc., Exchange Income Corporation, Toromont Industries Ltd., Magna International Inc., Linamar Corporation, Gildan Activewear Inc., Loblaw Companies Ltd., Metro Inc., George Weston Limited, AGF Management Limited, Great-West Lifeco Inc., Canaccord Genuity Group Inc., CIBC, Bank Of Nova Scotia, iA Financial Corporation Inc., Fairfax Financial Holdings Ltd., Equitable Group Inc., Open Text Corp., Enghouse Systems Limited, Rogers Communications Inc., Cogeco Communications Inc., Quebecor Inc., and Northland Power Inc. This roster spans energy giants to tech innovators, illustrating diversification's power in mitigating risks—expand on this by noting how having a mix of sectors can protect against downturns in any one area.
Now, let's pivot to a broader perspective that might spark some debate. Evercore ISI strategist Julian Emanuel argues we're living in an age where 'The Impossible becomes Commonplace.' Picture this: Since the 1987 market crash, we've seen what was once unthinkable—like frequent market swings or rapid tech leaps from PCs to AI—become routine. From central banks stepping in to stabilize crises (fostering more risk-taking with debt) to global social shifts lifting millions out of poverty, these forces have fueled a 'Financial Revolution' with tools like ETFs and zero-day-to-expiration options, democratizing market access. Emanuel predicts that by early 2025—wait, that might be a typo, but let's assume it's 2025 based on context—these elements will sustain an AI-driven bull market, with volatility just a phase in a cycle boosted by strong earnings, Fed easing, and stimulus. Heading into a seasonally strong November-December-January, he recommends overweighting AI-enablers in communications services, consumer discretionary, and information technology, plus buying upside calls on 2025's AI leaders expiring in June 2026. But here's the controversial twist: Is this boundless optimism blinding us to recurring busts, or is AI truly the game-changer? And this is the part most people miss—the potential for over-leverage in this 'era' to trigger another crash. I haven't gotten my hands on Emanuel's specific AI stock list yet, but I'll update when I do—stay tuned for actionable insights.
Shifting gears, Scotiabank analyst Robert Hope offers a measured take on utilities and energy infrastructure, urging caution amid hype. For Q3 2025 results, his forecasts are generally lower than consensus, especially for power companies facing weak generation headwinds. Yet, he sees long-term positives, like rising Alberta power prices by 2028, prompting him to hike targets for CPX-T and TA-T. With natural gas outlooks improving and bond yields falling, pipeline valuations get a boost too. Hope downgrades GEI-T to Sector Perform due to slower growth, but still favors power plays, then gas-linked pipelines, and finally utilities. His top picks? ALA-T, BIP-N, CPX-T, PPL-T, and TA-T. This balanced view highlights how sector-specific factors—like energy prices or policy changes—can sway forecasts, a great example for beginners to consider regulatory impacts on investments.
And speaking of tech buzz, check out this eye-opening Bluesky post: Tech stocks attracted over $10 billion in weekly inflows, shattering records. (Imagine the image here of the Barchart tweet from October 18, 2025, at 11:03 AM.) It's a testament to investor enthusiasm, but does this influx signal sustainable growth or just speculative frenzy? Controversial question: In a market hooked on AI narratives, are we investing in innovation or chasing trends?
For a quick diversion, dive into this Marginal Revolution piece titled 'Rare earths aren’t rare'—exploring how these crucial materials for tech aren't as scarce as their name suggests, potentially reshaping supply chains and global trade. (Link: https://marginalrevolution.com/marginalrevolution/2025/10/rare-earths-arent-rare.html?utmsource=feedly&utmmedium=rss&utm_campaign=rare-earths-arent-rare)
So, what do you think? Is the market's 'impossible-to-commonplace' evolution a sign of progress, or are we ignoring warning signs for another bubble? Do you agree with Koziol's list tweaks, or would you have swapped out different stocks? Share your thoughts in the comments—let's debate the future of investing!
