Market Outlook: Investors shift toward banks, energy and retail

Volatility tied to geopolitical tensions is reshaping portfolio strategy, with investors balancing risk-on rebounds against demand for defensive positioning.

BNN Bloomberg spoke with Shiraz Ahmed, CEO at Sartorial Wealth, about how momentum-driven investing is guiding allocations across financials, energy and consumer staples.

Key Takeaways

• Momentum-driven strategies are being challenged by heightened volatility, making short-term trends harder to interpret.
• Royal Bank of Canada is viewed as a stable compounder, supported by diversified revenue across retail banking, wealth management and capital markets.
• Energy stocks such as Eni have benefited from geopolitical tensions, with strong recent momentum driven by tighter supply conditions.
• Geopolitical risk continues to create both upside and uncertainty in energy markets, reinforcing their role as tactical portfolio plays.
• Walmart is attracting both lower- and higher-income consumers, reinforcing its role as a defensive stock during periods of economic stress.

Read the full transcript below:

ANDREW: Let’s get some ideas now from a portfolio manager who uses quantitative strategies, with momentum as a key metric for stocks. We’re joined by Shiraz Ahmed, CEO of Sartorial Wealth. Great to see you.

SHIRAZ: Thank you. Great to be here.

ANDREW: Straight off, what are your thoughts? I know it’s very early days on this ceasefire.

SHIRAZ: For the world, it’s positive news. Obviously, depending on how you’ve been positioning your portfolios, it could be good or bad. A lot of the defensive or risk-off type securities are taking it on the chin a little bit today, while some of the risk-on names are coming back.

ANDREW: Right. This is a situation where it’s hard to discern momentum, isn’t it? It’s just so choppy.

SHIRAZ: Very much so. Volatility is through the roof, and that’s to be expected in times of geopolitical risk.

ANDREW: Let’s get to a stock that’s an old faithful for many investors — Royal Bank of Canada. You like the look of this one right now?

SHIRAZ: Definitely. We’ve liked it for a while. Over the past year, we’ve been in and out of it a few times, but we’ve recently taken a position again. We’re a fan of RBC as a robust banking opportunity. It’s not just pure banking — the wealth management side of the business and capital markets provide a very stable model overall. It’s also a household name in Canada, so it’s widely recognized.

ANDREW: Let’s put up a 10-year chart. Your argument is that this is a compounder — it doesn’t just move up and down with the economy.

SHIRAZ: Typically, yes. But it is tied to interest rates, so central bank policy will impact performance. Overall, it has been healthy and has done quite well.

ANDREW: You can see it drifted for a while. During COVID, everything dropped, and then there were concerns about mortgage renewals.

SHIRAZ: That’s right. Loan loss provisions across banks’ balance sheets were increased, and RBC followed suit. Those fears have since subsided, and we’re positive on the stock overall.

ANDREW: Another name you like is Eni, trading in New York, a major European energy player.

SHIRAZ: Yes. This is an energy-sector play we’ve made in light of recent volatility and momentum in the space. It’s down a bit today, but over the past few weeks, energy has been one of the beneficiaries of the ongoing geopolitical situation.

ANDREW: What about the company itself? The stock has had strong momentum over the past year.

SHIRAZ: Absolutely. It has shown very strong positive momentum. Our screening looks at risk-adjusted returns over both the long term and short term, and Eni has scored very well. It’s a name we wanted to add.

ANDREW: And Walmart, finally — a pretty obvious recession hedge. People look for lower prices in tough times.

SHIRAZ: Absolutely. We’re even seeing higher-income consumers turning to Walmart. It’s been one of the bigger beneficiaries. It’s a very defensive stock that has performed well in periods of uncertainty.

ANDREW: Let’s try a 10-year chart for Walmart. One interesting point is that they’ve made online work. They’ve been in a major battle with Amazon in that space.

SHIRAZ: They’ve done a remarkable job pivoting their business to meet current needs. That’s part of why we like Walmart. We’re primarily momentum-driven, but we do fundamental analysis first, and Walmart screens well across multiple metrics.

ANDREW: It’s also interesting that advertising is becoming part of the business. With so much traffic, they’re almost like a media company.

SHIRAZ: It’s part of their business, though not the core. But we do like how they’re positioned today. Because we’re momentum-driven, we could be in today and out at the next rebalance. But right now, we do like Walmart.

ANDREW: And higher-income consumers — people who may not have shopped there before — are now going.

SHIRAZ: Exactly. It could even be for groceries. You don’t always know which category is driving it, but the key point is that more higher-income earners are shopping at Walmart.

ANDREW: Shiraz, thank you very much.

SHIRAZ: My pleasure. Thank you.

ANDREW: Shiraz Ahmed, CEO of Sartorial Wealth.

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This BNN Bloomberg summary and transcript of the April 8, 2026 interview with Shiraz Ahmed 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.