Investor Outlook: Markets at record highs as gold and tech stocks climb together

Stock markets in Canada and the U.S. are at record highs, fuelled by a rally in both gold and technology stocks. The unusual alignment has raised questions about how long the two can keep moving higher together given their normally conflicting drivers.

BNN Bloomberg spoke with Rebecca Teltscher, portfolio manager at Newhaven Asset Management, who says investors may face a pullback as economic data comes back into focus. She points to risks within individual Mag 7 names and warns valuations may not be sustainable.

Key Takeaways

• Canadian and U.S. stock markets are at record highs this week.
• Gold has surged as a safe-haven play, with XGD up 21 per cent in the past month and 165 per cent in two years.
• The S&P 500 rally is driven by the Magnificent 7, up 7.5 per cent in a month and 115 per cent over two years.
• Gold and tech usually move on opposing signals, making their joint rally unusual.
• Risks loom for Mag 7 names, with valuations stretched and economic data pointing to weaker consumer demand.

Read the full transcript below:

ANDREW: Let’s get more on the markets from Rebecca Teltscher, portfolio manager at Newhaven Asset Management. Great to see you.

REBECCA: Thanks for having me.

ANDREW: It does seem like an odd situation. We’ve got gold, which has been around for millennia, hitting record highs this week, but tech stocks surging as well.

REBECCA: It’s been interesting to see both. Canada and the U.S. are both flirting with record highs almost on a daily basis. On the U.S. side, we’re looking at record territory in terms of going more than 15 months without a two per cent correction. If you look at what’s driving both markets, they’re telling two completely different stories. In Canada, the TSX is surging because of its weight in gold and precious metals. The XGD, the Canadian gold ETF, is up 21 per cent in the past month and up 165 per cent in the past two years.

ANDREW: There’s the TSX. We’ll look at it in a second.

REBECCA: Yes, there it is. That’s an amazing run. If you look at the Magnificent 7, the bulk of the large technology stocks in the U.S., that’s what’s driving the S&P 500. It’s up 7.5 per cent in the past month and up 115 per cent in the past two years, which is impressive considering how far it fell back in April on Liberation Day. The fact both gold and tech are running at the same time is bizarre, because the drivers are conflicting. Investors usually flock to gold when there’s geopolitical tension, economic uncertainty or persistent inflation. Tech rallies on expectations of a stable economy and easing trade tensions. This barbell of gold and tech is sending two different messages. I don’t know which one will prove right. Our portfolio is focused more on stable dividends and cash flow, but I’m nervous about the economy and not convinced by current tech valuations.

ANDREW: We keep hearing this theme of income inequality, with lower-income consumers struggling while the wealthy are doing well. Could that fuel more right-wing populism if frustration grows?

REBECCA: Yes, and when I think about the Mag 7, there are risks with almost every one of those names. Take Amazon — no one is suggesting it will fail, but its success depends on consumer spending. If that weakens, sales will suffer. Apple is dealing with supply chain issues. Microsoft faces AI competition. Tesla has slower demand for EVs and more rivals. Each Mag 7 stock has risks that can’t be ignored, yet they’re trading at record valuations.

ANDREW: Amazon has been something of a laggard compared with the other Mag 7 stocks. Much of its profit comes from cloud services, but shares are up only about one per cent in 2025.

REBECCA: That’s because of what we saw in April on Liberation Day, when markets panicked over tariff uncertainty. Interestingly, it was tech stocks that got hit hardest, not transportation or industrial names that you’d expect to be more exposed. The issue wasn’t their global exposure, it was valuations. When stocks are priced for perfection, any disappointment triggers a steep drop. That’s why a good company can still be a bad stock. Amazon fits that description right now. I shop there myself, and it’s a solid business, but the valuation doesn’t make sense.

ANDREW: Have you checked out Temu, the Chinese e-commerce site?

REBECCA: Yes — don’t tell my husband. I have two young girls, and I order party supplies and costumes constantly.

ANDREW: It’s so cheap compared with Amazon.

REBECCA: Exactly. Many products are the same, but if you can wait a week or two, you pay half the price. That’s more competition for Amazon, especially if consumer spending slows as employment weakens. AI is another factor. While it’s generating excitement, we haven’t seen its impact on jobs yet. If AI starts replacing workers, employment data could worsen before it improves.

ANDREW: It’s early days for AI. In a sense, we’re still at the stage of clay tablets.

REBECCA: Absolutely. And central banks have a dual mandate: controlling inflation and supporting employment. Tariffs are likely to push inflation higher, but we don’t know by how much or for how long. On the other side, AI could disrupt jobs, but those effects will take years to show up. So there are risks on both fronts, which Fed Chair Jerome Powell highlighted yesterday. I agree with him — inflation risks from tariffs will come first, but the employment effects from AI will be more gradual.

ANDREW: Rebecca, thanks very much.

REBECCA: Thank you.

ANDREW: That was Rebecca Teltscher, portfolio manager at Newhaven Asset Management.

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This BNN Bloomberg summary and transcript of the Sept. 24, 2025 interview with Rebecca Teltscher are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.