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Pro Picks: Commodity Stocks for 2026 from David Burrows

David Burrows is back — and he’s bringing receipts. When he joined In the Money with Amber Kanwar last year, his call that Canada would behave more like a global market than a U.S. tech-heavy one went viral… and then it played out. Now, the Chairman & CIO of Barometer Capital Management, returns with the same message, only louder: the market is shifting — and the forces driving the new leadership are getting stronger. Burrows explains why investors may need to look beyond the familiar tech trade, and why commodities, financials, defence, and selective international exposure are increasingly doing the heavy lifting as we head deeper into 2026.

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RECAP: Performance of Pro Picks from March 6, 2025

  • JP Morgan (JPM): +35%.
    • Still a core holding for its superior management, heavy tech investment (positioning it for AI efficiencies), and improving net interest margins in a lender-friendly environment.
  • Fairfax Financial (FFH): +30%
    • Strong performer in the insurance space. Outperformed Berkshire Hathaway over time due to savvy investments and effective float management; opaque structure limits broader adoption but rewards disciples.
  • Agnico Eagle (AEM): + 95%
    • A standout gold producer with a strong balance sheet, multi-mine operations in safe jurisdictions, and solid dividend growth—positioned as a long-term inflation hedge with potential for 10x returns in a multi-year bull.
  • AVERAGE RETURN: +53%

Pro Picks for 2026

Hudbay Minerals (HBM)
A mid-tier copper producer set to benefit from structural supply shortages and organic growth.

  • Strong growth pipeline via the derisked Copper World mine, with Mitsubishi providing $400M in funding to accelerate development without straining Hudbay’s balance sheet.
  • Positioned in a looming copper deficit driven by AI, energy transition, and electrification demands, following a decade of underinvestment in new projects.
  • M&A upside as an intermediate player; history shows majors like Glencore often acquire such assets at premiums during bull cycles, adding a free option to organic gains.

Wheaton Precious Metals (WPM)

A leading precious metals streamer offering lower-volatility exposure to gold and silver rallies.

  • Reduced risk profile as a streamer (financing mines in exchange for future production), providing stability during corrections while capturing upside in a multi-year precious metals bull.
  • Highest silver exposure among peers, with superior production growth driving faster revenue increases compared to competitors like Franco-Nevada.
  • Acts as an inflation hedge and bond alternative; central bank buying and portfolio reallocations (from 2-3% to 15-17% precious metals allocation) support long-term trends, especially with gold’s lower volatility than Treasuries.

Headwater Exploration (HWX.TO)

A low-cost Canadian energy play in the productive Clearwater region, early in the energy cycle.

  • Exceptionally efficient operations with breakeven costs around $35/barrel, low decline rates (20-25%), and multilateral drilling/waterflood techniques optimizing output in a high-margin play.
  • Strong balance sheet and cash flow generation make it resilient even if energy prices lag; not dependent on immediate commodity spikes to profit.
  • Early beneficiary of an emerging energy bull market, with optionality on natural gas assets and potential for significant dividend growth as global stimulus and commodity cycles strengthen.

 

Don’t miss our next episode! Can Canada’s smallest bank and last year’s worst performing turn things around under a new CEO? Don’t miss our exclusive interview! 

DISCLAIMERS: This text AI generated, human edited. 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.

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