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Deregulation

Markets to Continue Rising, Says CIBC Wood Gundy Manager Jay Smith

Strategic Insights

— 2 min read

Jay Smith, a portfolio manager and investment adviser at CIBC Wood Gundy, predicts that stock markets will continue to rise due to interest rate cuts, government deregulation, and favorable tariff negotiations. He believes that US President Donald Trump's recent trade agreements with Europe, the UK, and Japan will lead to a rally in the market. Smith also expects interest rates to fall in the US and Canada, making it easier for companies to access capital and for economies to be more productive.

Key Takeaways:

  • Jay Smith, a portfolio manager and investment adviser at CIBC Wood Gundy, predicts that stock markets will continue to rise due to interest rate cuts, government deregulation, and favorable tariff negotiations.
  • Smith expects US President Donald Trump's recent trade agreements with Europe, the UK, and Japan to lead to a rally in the market.
  • He believes that interest rates will fall in the US and Canada, making it easier for companies to access capital and for economies to be more productive.
  • Smith runs five portfolio models for his clients, including a North American portfolio that is up 14.4 per cent so far this year, and a global opportunities fund that is up 14.3 per cent.
  • He has been buying stocks such as Nvidia Corp., Oracle Corp., and Taiwan Semiconductor ADR, and has sold BCE Inc. due to its declining average revenue per user numbers and high debt levels.
  • Smith expects markets to continue rising at least until 2027, driven by a combination of bullish catalysts including interest rate cuts, government deregulation, and growth in artificial intelligence (AI).

Statistics:

  • Smith's North American portfolio is up 14.4 per cent so far this year, as of Sept. 30, and is up 23 per cent over the past 12 months.
  • His global opportunities fund is up 14.3 per cent so far this year, as of Sept. 30, and has risen 27 per cent over the past 12 months.
  • Nvidia Corp. is up 14.4 per cent so far this year, and has a price-earnings valuation that is cheaper now than when Smith first bought it.
  • Oracle Corp. is up 15 per cent since Smith started buying it in July, and has a strong cloud database business and a partnership with OpenAI.
  • Taiwan Semiconductor ADR is up 233 per cent since Smith started buying it in 2021, and has a revenue compounded annual growth rate of 20 to 25 per cent a year for the next few years.

Sources:

  • "Byline: BRENDA BOUW; Staff THE MOVER"
  • CIBC Wood Gundy
  • CIBC Private Wealth
  • Nvidia Corp.
  • Oracle Corp.
  • Taiwan Semiconductor ADR
  • BCE Inc.

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