“It's Time to Be More Cautious Than Optimistic”: Top Stock Picker's Warning

The AI trade is getting tired, inflation isn't going away, and some of the market's biggest winners may no longer be the best places to invest. Is it time to get defensive? On this episode of In the Money with Amber Kanwar, top-performing stock picker Lyle Stein, President of  Forvest Canada returns with a warning for investors: "This is a time to be more cautious than optimistic." After delivering some of the show's strongest stock picks last year, Stein is taking a more selective approach. He's trimmed his exposure to precious metals, sold Google (GOOGL), and remains deeply skeptical of Canadian banks and big oil producers. He argues that investors should stop chasing stocks at record highs and start looking for quality companies that have fallen out of favour. With the AI trade losing momentum and money rotating into other parts of the market, where will the next opportunities emerge? Stein explains why he's favouring bonds and dividend income, why he still sees a role for gold despite its recent plunge, and why pipelines offer a more attractive way to play Canadian energy than the major oil producers. He also makes the case for owning AI-related stocks that generate strong cash flow rather than companies spending heavily to build out the technology. In the Mailbag, Stein explains why he's buying the dip in pipeline giant Enbridge (ENB), arguing that its attractive dividend yield and stable cash flows make it a compelling way to invest in Canadian energy without taking on the same risks as oil producers. He also reveals why he recently bought Thomson Reuters (TRI) following the software sector selloff, whether Cameco (CCO) is a buying opportunity after its sharp decline, and why he's steering clear of Canadian oil heavyweights Suncor (SU), Canadian Natural Resources (CNQ) and Cenovus (CVE). Plus, is the selloff in Alamos Gold (AGI) an opportunity or a warning sign for gold investors? In Pro Picks, Stein revisits last year's successful recommendations, including First Majestic Silver (AG), Sprott and Peyto Exploration (PEY), and explains what he's sold and what he continues to own. He then reveals his latest high-conviction ideas: gold producer Agnico Eagle (AEM), semiconductor company Micron Technology (MU), and target-maturity U.S. Treasury inflation-protected securities ETFs designed to help investors preserve purchasing power. Timestamps 00:00 Trailer 1:55 Welcome, merch store and episode preview 3:52 Lyle Stein returns: cautious after a messy October 5:12 Consumer staples and healthcare: is the trade over? 6:08 Where does money from the AI trade go next? 7:37 Income: stocks vs. bonds and the 8% return target 9:34 Gold: why Lyle trimmed from 25% of portfolios 12:33 Canadian banks: why he doesn't own them 14:32 Is the Canadian market cheap? Canada vs. the US 15:40 ITM Mailbag: Enbridge and the pipelines (ENB 19:11 Interest rates, inflation and the Bank of Canada hike 21:36 Thomson Reuters after the "SaaSpocalypse" (TRI) 25:48 Cameco and uranium (CCO) 28:16 Suncor, CNQ and Cenovus (SU, CNQ, CVE) 31:28 Alamos Gold and how to play gold (AGI) 34:12 Pro picks: check-in on last year's silver trades (AG, SII) 36:34 Why gas names like Peyto outperformed (PEY) 38:02 Vermilion Energy (VET) 40:24 Pro pick: Agnico Eagle (AEM) 42:10 Pro pick: Micron (MU) 47:08 Pro pick: target-date TIPS ETFs 51:42 Closing Bell: soccer with the over-50s Sponsors Thanks to our partners at Guardian Capital LP. Following Conviction, Not the Crowd. Contact your advisor today and ask about Guardian Capital’s Funds and ETFs and visit their website for more information at https://guardiancapital.com ATB Cormark Capital Markets is a leading North American investment firm providing holistic corporate and capital markets advice and full-service financial solutions. Visit https://ATB.com/inthemoney for more information. 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. Thank you to our partners at Hamilton ETFs. For more information visit https://hamiltonetfs.com All the charts you’ll see today are sponsored by Wealthsimple Trade. The self-directed trading platform built for active traders in Canada. Learn more at  https://app.wealthsimple.com/74rd/83ftma8x Support for this podcast is brought to you by EQB – the company behind EQ Bank, Canada’s Challenger Bank. For more information visit https://www.eqbank.ca/ The Closing Bell is sponsored by The Haliburton Post House: private executive retreats in Ontario's Haliburton Highlands. Reserve your Fall 2026 or Spring 2027 dates at The Haliburton Post House. Mention In the Money for $1000 off your reservation! E-mail [email protected] for more information.  Links https://inthemoneypod.com/  https://instagram.com/inthemoneypod https://facebook.com/profile.php?id=61569721774740  https://twitter.com/inthemoneypod  https://tiktok.com/@inthemoneypod [email protected] DISCLAIMERS  The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice.The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions. In the Money delivers expert stock picks, actionable ideas, and timely money management tips. Hosted by business journalist Amber Kanwar, each episode features interviews with top portfolio managers who suggest ways to achieve good returns. Covering everything from ETFs and Canadian stocks to global investing trends, dividend strategies, and risk management, this show is made for DIY investors, stock market enthusiasts, and anyone looking to sharpen their financial strategy. Contact: [email protected] #IntheMoney #Investing #StockMarket #CanadianInvesting #FinancialNews