All Eyes on North America’s Large Caps

As market uncertainty reigns supreme, finance expert Christine Poole, co-chief investment officer at Davis Rea, has handpicked standout stocks set to weather the storm. With an emphasis on North American large caps, her top three recommendations are CGI, JPMorgan Chase, and RTX Corp.

Market Turbulence Ahead!

Amidst an unpredictable U.S. trade environment, financial markets have been riddled with volatility. Following President Trump's surprising fiscal maneuvers and hefty tariffs announced on April 2, the stock markets experienced a significant selloff, catching investors off guard. Fortunately, a slight breath of relief may be on the horizon with a 90-day pause on tariffs, although tensions remain high, particularly with China.

Trade Policy Uncertainty: A Double-Edged Sword

While the White House appears open to tariff negotiations, the extended pause has instilled ongoing uncertainty, leaving both consumers and businesses on edge. History shows that lowered confidence directly impacts spending and hiring—key drivers of economic growth. The looming threat of stagflation, where growth stagnates while inflation rises, raises alarms for potential fiscal and monetary interventions.

Position Yourself for Success!

In these tumultuous times, Poole urges investors to prioritize what they can control—maintaining a diversified portfolio. By investing with a long-term perspective, investors can harness the power of compounding.

The Golden Trio: Top Stock Picks!

**CGI (GIB.A TSX)** CGI stands tall as a premier global IT services and consulting firm, boasting a balanced revenue stream—55% from managed services and 45% from integration and consulting. Recently, CGI rolled out a dividend, promising a yield of around 0.4%!

**JPMorgan Chase (JPM NYSE)** As the largest U.S. bank, JPMorgan has mastered the art of navigating market ups and downs. With a stellar management team and a solid performance record, it offers a generous dividend yield of 2.4% for its investors.

**RTX Corp (RTX NYSE)** Leading the charge in aerospace and defense, RTX Corp is a heavyweight in the market. With products in high demand—thanks to its sprawling portfolio from avionics to missile defense systems—its stock offers a lucrative dividend yield of 1.9%.

A Look Back: Previous Picks

Reflecting on past selections reveals mixed results: - **Alphabet (GOOGL)** started at $147.60 and barely budged to $147.55, a tiny drop of 0.34%. - **Mondelez (MDLZ)** faced a steeper challenge, dropping 7% from $72.21 to $67.39. - **Zoetis (ZTS)** also witnessed a decline of 12%, shifting from $168.32 to $147.23.

Investors, brace yourselves for the ongoing market shifts, and keep Poole’s recommended picks in your sights!