NEW EPISODE: Prime Minister Mark Carney declared a new world order at Davos this week, what does that mean for your money? In this episode of In the Money with Amber Kanwar, Amber sits down with David Picton, CEO of PICTON Investments, Canada’s largest hedge fund, to unpack what a shifting global order means for investors. Tune in now!
Something new is happening in our house. The eldest woke up before the whole house (sadly, that is not new) but instead of coming to our room to act as our pre-dawn alarm she went straight to the kitchen. For several minutes I heard banging around in the kitchen and thought about the trade off between staying cozy in bed and the house potentially going up in flames. To my surprise not only was the house not in flames, but she made her own breakfast. Scrambled eggs and French toast! After sitting down to enjoy the fruits of her labour she declared after one bite, “Yuck, this tastes disgusting!” I guess she inherited her mother’s cooking skills.
Here are five things to know:
TACO: US futures are rallying building on yesterday’s gains after US President Donald Trump backed off from the worst of his Greenland threats. Trump said in his speech at Davos he wouldn’t use violence and later at a meeting with the General Secretary of NATO said that a framework was in place that was acceptable to him. Reports suggest this includes US military zones and access to critical minerals. And thus ends Greenland’s 15-minutes. Gold didn’t move on as easily with prices hitting a new record. This morning Goldman Sachs increased their target for bullion to $5,400/oz implying 10% upside from here. We talked gold with Picton on the podcast who said fund managers all say gold has overshot all their models. Picton argues that owning gold is really just about answering one question: “Do I feel better about the prospects for my currency and the leadership that’s in charge of it, or do I feel worse?” His bet is that in this environment, most feel worse. Having said that, gold is slightly lower and tech is back in rally mode. Intel reports today after the bell.
High bar: GE failed to clear a high bar in its earnings and the stock is trading down in the pre-market. The actual results were solid for the aircraft engine supplier: profit, sales and free cash all handily beat expectations. However, the outlook for 2026 suggests sales growth will slow from 2025. Call this nitpicking, because the outlook was higher than consensus estimates. Keep in mind the stock is up 70% over the past year so this could just be an excuse to sell. TD’s Gautam Khanna says the results “should be good enough” and is “likely conservative.” Commentary from GE is also pretty upbeat with the CEO saying they’re not concerned about the demand environment insisting there is “no talk of a slowdown” in airline or defense demand.
Malnourished: Shares of Abbott Labs are plunging 6% after fourth quarter sales missed expectations and its outlook was weaker than expected due to softness in its nutrition segment. Abbott’s device business continues to wear the decline of Covid testing kits, but its diabetes monitoring tools have become a growth engine. However, Abbott also makes baby formula which has come under pressure following lawsuits alleging it makes premature babies sick. The biggest shortfall this quarter was in that unit with sales coming in half of what was expected. The stock is poised to open at a one-year low.
Comeback kid: On the other hand, pandemic trainwreck Moderna is showing signs of new life popping 3.5% in the pre-market following a 15% rally yesterday. Moderna has been in rally mode thanks to positive long-term results from its cancer study. The stock has actually hit a 52-week high but if you zoom out the Covid vaccine maker is still down nearly 90% from its pandemic high. In addition to struggling Covid sales, vaccine’s have become a four letter word in the US and that has also weighed on the stock. “We believe the recent stock move (+41% YTD) is partially driven by investor positioning ahead of multiple oncology readouts expected this year,” wrote Evercore’s Cory Kasimov who isn’t willing to rate it a buy just yet. Kasimov needs to see a better outlook for its personalized mRNA cancer vaccine and its ability to offset its struggling vaccine business before getting constructive.
Notable calls: Fairfax Financial is being downgraded at BMO on a muted operating income outlook. I own this one. BMO’s Tom Mackinnon says global insurance markets are softening and, with it, declining underwriting income. This combined with moderating investment gains has him moving to neutral and cutting his price target from $2,600/share to $2,500/share. Teck Resources is being downgraded at TD Cowen on the risk of shares being rangebound until the Anglo-Teck merger closes. “We see 2026 as a transitional year for Teck,” wrote TD Cowen’s Craig Hutchison in the downgrade, “we believe Teck shares will remain relatively range-bound until new catalysts are defined.” They are still bullish on copper but prefer other names like Hudbay, Capstone Copper and Ivanhoe mines for greater short term opportunity. Jefferies is recommending investors buy the dip in Meta (I also own). Shares are popping 2% in the pre-market. Meta, the owner of Facebook and Instagram, is down 22% from its peak last summer. Jefferies’ Brent Thill argues that it has under performed peers like Amazon and Google on concerns about margin pressure, spending, and AI execution. In Thill’s mind, Meta is going to address all these concerns and thinks the worst is over for the shares. His price target implies 48% upside from here.
Don’t miss our next episode! We are taking your questions! Email questions@inthemoneypod.com
