Episode 66
Value stocks are back and Canadian equities may finally be getting the recognition they deserve. In this episode of In the Money with Amber Kanwar, 40-year market veteran Kim Shannon, founder of Sionna Investment Managers, shares why she believes Canada and value investing are poised to outperform in the next decade, despite the market’s obsession with AI, growth, and U.S. mega caps.
Kim argues that we’re in the midst of a speculative market, with U.S. indexes trading at historically high P/E multiples. She points to the Schiller P/E as a warning signal, suggesting that U.S. equity returns could average just 1% over the next 10 years compared to 5–7% for Canada. With inflation sticking around, she explains why value stocks, especially in resource-rich, dividend-heavy markets like Canada, have the edge.
In the mailbag, Kim breaks down some of her current views on Canadian Tire (CTC.A) as a defensive retail name with a 4% yield, Alimentation Couche-Tard (ATD) as a compounder that’s been temporarily punished for its failed 7-Eleven bid, and CN Rail (CNR) as a long-term winner getting more attractive. She also discusses Rogers (RCI.B) and Quebecor (QBR.B), the telcos she likes, and explains why she’s avoiding REITs for now due to debt and lack of catalysts.
Then, in her Pro Picks segment, Kim reveals three high-conviction ideas: Bank of Nova Scotia (BNS) as a turnaround story in Canadian banking, Cenovus Energy (CVE) as a disciplined energy name with acquisition upside, and she lays out her gold strategy with Agnico Eagle (AEM) and Barrick Mining (ABX), marking a rare moment where she’s market-weight gold for the first time in her career.
Whether you’re looking for dividend-paying Canadian stocks, worried about U.S. tech valuations, or exploring ways to hedge against interest rate risk and inflation, this episode is packed with insights from one of Canada’s most respected value investors.
Timestamps
00:00 Show intro and info on swag giveaway
02:25 Kim says the world needs to wake up on Canadian and value stocks
04:30 Reconciling negative headlines on Canada and optimism on stocks
07:00 Why we’re in the third biggest speculative market this century
09:30 Why the U.S. market is likely reaching a peak
10:55 Is Kim a perma-bull on Canadian value?
13:00 You can see a recovery in value in Canada and Europe
15:00 The risk of rate cuts in this environment
20:50 ITM Mailbag: Canadian Tire stock (CTC.A.TO)
25:10 Couche-Tard stock (ATD.TO)
29:20 Are tariffs affecting where Kim wants to pull the trigger?
32:00 Does Kim have a favourite Canadian telco stock? (RCI.B, QBR.B, BCE)
36:15 Why Kim doesn’t own any REITs right now
38:00 Canadian railroad stocks (CN.TO, CP.TO)
42:40 Pro Picks (BNS.TO, CVE.TO, AEM.TO, ABX.TO)
Sponsors
For over 25 years, Raymond James has been helping Canadians achieve their financial goals. Visit https://raymondjames.ca today to discover how you can live a life well planned.
Pro Picks is brought to you by ATB Financial. Visit https://ATB.com/inthemoney for more information
Links
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Published on 11 hours ago
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