TUNE IN TO A BRAND NEW EPISODE
Global fund managers raised their allocation to equities by the most on record in May, but Chad Larson, who manages the best performing tactical fund in Canada, is taking a contrarian approach—holding elevated cash levels while selectively deploying into his highest-conviction trades. On this episode of In the Money with Amber Kanwar, the Founder & Senior Portfolio Manager at MLD Wealth, breaks down why his largest holding is cash—and why that doesn’t make him bearish.
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Before my husband said a word to me this morning, I got a text from him while he was in the kitchen: “My God, SpaceX.” When we first met we flirted about whether Air Canada shares had gotten ahead of themselves. It’s nice to know after all these years we still share the same love language.
Here are five things to know today:
Rising sun: The enthusiasm for the Iran and US deal is failing to hold up markets this morning after a rip-roaring session yesterday that saw the NASDAQ soar 3%. The TSX even managed to finish at a record high as the surge in gold offset the decline in oil. The drop in crude continues today, with oil trading at $78/barrel. Never mind that there is nothing in writing about what the framework entails or what the two countries have agreed to do. Oil is in a bear market, down 30% from the peak but TSX Energy stocks are only off 5% from their record high. Remember, even before the war sent prices higher, Canadian energy stocks were hitting records. Aside from this, we’ve got the Fed rate decision tomorrow – the first under Kevin Warsh. The Bank of Japan raised rates as expected and signaled more could be coming – tackling inflation just as a disinflation trade takes hold.
Rocket fuel: And then there is SpaceX. Day 1: +20%. Day 2: +20%. Day 3: +5% in the pre-market. At $2.5 trillion it is nearing Amazon’s $2.6 trillion value – with only a fraction of the revenue. Is SpaceX the newest meme stock? “People are buying SpaceX in the expectation that others will buy too and push the price higher — that’s speculation,” wrote Ipek Ozkardeskaya, of Swissquote, “But at the end of the day, whoever is buying as if there is no tomorrow will eventually understand that space exploration dreams come at a cost, and SpaceX shareholders will be paying that cost before seeing the colour of return.”
(Source: Bespoke Investment Group)
Boom goes the dynamite: Watch shares of Groupe Dynamite after reporting better than expected profit and headline sales, but lower than expected comparable sales. The owner of Dynamite and Garage clothing stores saw comparable sales increase 22.6% – a very respectable showing, but that was lower than the 24.5% expected. However, adjusting for currency sales grew 24.7%. We will see how the market treats that. Margins were a bright spot, expanding to a four-year high and positiioning themselves “alongside the world’s most profitable fashion houses” according to CEO Andrew Lufty. Shares are under pressure in 2026 ever since they did a stock offering at the end of April. The company went public at the end of 2024 at $21 a piece. The company maintained its outlook for sales calling for 11-14% growth this year, which would be a deceleration from current levels.
Rough play: Dave & Busters is plunging 20% after comparable sales unexpectedly fell 5.4%, the consensus was looking for a more modest 2% drop. Profit was half of expectations and margins were worse. The stock has already been an underperformer and is poised to open at the lowest level since the depths of the pandemic. Investors are losing hope things will turn around – even though management has said things are improving. Sales declining more than expected works against that narrative, says the Mike Hickey at Benchmark Research which downgraded the stock.
Spring market: Canadian home sales increased 5% from April to May according to the latest data from the Canadian Real Estate Association. Home prices dipped 0.1% over that time and the average selling price is now around $702,079 which is the highest level in 2 years. Compared to last year, home sales and home prices are still down. The average price of a Toronto home is down 4.6% from last year and in Vancouver it is down 2.2%. CREA says that momentum is slowly building in the housing market and “activity is now picking up.”
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