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%.
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PAST PICKS SCORECARD
Picks made September 16, 2025: average gain of 66%
- Bank of Nova Scotia (BNS): +52%. Shannon still holds it but is not adding. She’s modestly underweight the banks after trimming winners, and is waiting for a US bank scare to make Canadian banks cheaper.
- Cenovus Energy (CVE): +100%. Still one of her largest holdings, a 5% weight, though she’s not adding. She replaced CNQ with it and says it could be “the new CNQ.”
- Barrick (ABX): +47%. She switched into it from Agnico Eagle, which has gained 25% since. She’s still holding and bringing it back as a pick (below).
THIS YEAR’S PICKS
1. Barrick (ABX)
- Valuation: trades at about 8–10x earnings and 0.8x price to NAV. Its past decade range on NAV has been up to 1.2x.
- Hidden asset: Fourmile in Nevada, which she calls the best gold discovery globally in decades. It holds an expected 24 million ounces with a roughly 25-year mine life.
- Margins: all-in sustaining costs at Fourmile are about $650–750/oz, against gold above $4,100.
- Cash flow: last quarter was the highest in the company’s history.
- Catalysts: new management and a proposed IPO of the North American assets to surface value.
- Backdrop: central banks are adding to gold reserves amid US dollar and credit concerns.
2. CGI Inc. (GIB.A)
- The selloff: about $100, down about 18% from its January peak near $130, after falling as low as $80 on SaaS-pocalypse fears.
- Defensive clients: hospitals, banks and governments that need mission-critical software and won’t risk “an agent they’ve just dreamt up.”
- US contracts: the risk of losing US government work has eased with recent renewals and new contracts.
- Long-term holding: she has owned it as “the value tech name” and recently added to the position.
3. Algonquin Power & Utilities (AQN)
- Valuation: about $7, down about 14% in 2026, trading at 0.9x book with a dividend yield near 5%.
- Turnaround: new management has sold most of the non-regulated assets and is cutting costs to become a pure regulated utility again.
- Catalyst: the company has applied to regulators to have its allowed ROE re-rated.
- Target: at least $12, which is just a return to peer valuation. The stock has been $18 in the past.
- Downside protection: “When you fall out of a basement window, you can’t fall far.”
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