Building or rebalancing your portfolio and wondering what investments to consider next?
Here’s what leading experts featured on BNN Bloomberg say investors should consider adding and dropping from their portfolios today.
Chris Kerlow | Senior Portfolio Manager & Investment Advisor, Canaccord Genuity
In your opinion, what single investment should investors own right now — and why?
Precious Metals sub-sector top idea Alamos Gold.
One sentence – We do not view precious metals simply as a tactical hedge, but as a permanent strategic allocation within diversified portfolios.
Gold and silver equities still look relatively inexpensive versus the underlying commodity. This is very different from prior gold cycles where management teams often overbuilt and destroyed capital.
Alamos is one of the cleaner ways to own gold equities because it combines low geopolitical risk, strong free cash flow, and visible production growth. You are buying a producer with a credible path toward roughly one million ounces a year by the end of the decade.
From your perspective, what is one investment investors should consider dropping from their portfolios — and why?
Underweight Media and Entertainment – drop Alphabet
One sentence – Alphabet generates substantial cash flow, but I think the market is underestimating the long-term risk AI poses to the economics of traditional search. The valuation is stretched following the recent rally. There are risks of lower earnings guidance and a rerating lower from these levels as these risks are realized.
This sub-sector accounts for roughly 10% of the S&P 500 the biggest constituent is Alphabet formerly Google
Valuations have become increasingly difficult to justify, driven largely by the move higher in Alphabet.
Alphabet looks expensive on both an absolute and relative basis.
