Christine Poole’s Top Picks for Nov. 10, 2026

Summary

• Christine Poole, President & Co-Chief Investment Officer at Davis Rea, highlights Microsoft, RTX Corp, & Stryker as top picks for North American Large Caps.
• October market data showed broadening breadth, with the S&P 500 Equal Weight Index rising 4.9% while the cap-weighted index fell 0.9%.
• The Democratic sweep in midterm elections has created uncertainty regarding the AI buildout pace & pressured AI-related stocks.
• U.S. GDP growth accelerated from 2.2% in Q2 to 3.4% in Q3, supported by strong consumer spending & business AI investment.
• U.S. unemployment remains low near 4%, while manufacturing & services PMIs signal expansion for 10 & 28 consecutive months respectively.
• Persistent inflation above the Federal Reserve's 2% target drove the September rate hike, despite the resilient economy.
• The Canadian economy faces a slower pace with GDP expected to drop below 1% in Q4 due to weak consumer spending & trade pressures.
• Canada's unemployment rate sits around 6.5%, prompting the Bank of Canada to raise rates in October as a preventative measure against future cost pass-throughs.
• Future Canadian growth is projected to improve via business investment boosted by federal tax incentives like the Productivity Mega Deduction.
• The investment framework prioritizes owning reasonably priced, high-quality companies in sectors with secular growth or stable income rather than market timing.
• Microsoft is selected for its recurring revenue, Azure cloud growth, & 0.7% dividend yield.
• RTX Corp is chosen for its robust defense demand & commercial aerospace growth, offering a 1.5% dividend yield.
• Stryker is highlighted for its dominance in orthopedic robotics & benefits from aging demographics, with a 1% dividend yield.
• Past picks from November 2025 included CN Rail (37% total return), Abbott Labs (-11% total return), & Otis Worldwide (-12% total return), averaging 5% total return.