• Longest market win streak in 20 years

• Immigration caps could be a headwind to REITs

• U.S. budget boosts Canadian defense, time to rotate to services?

• Buffett retires, Canadian could take the helm to deploy $350B

• MDA down big Friday, watch for a rebound today

Can the biggest win streak in 20 years continue?

With another positive close on Friday, the main market index has matched it’s longest win streak in over 20 years, rattling off 9 straight green days.

History would suggest things calm down a bit here in the near-term…

… but let’s see what happens. Confidence is clearly coming back to markets, with 8 of the last 10 Friday’s closing green - investors are comfortable holding over the weekend again.

Immigration in focus: REITs to be impacted

Carney gave his first address since winning the election on Friday, where he gave more concrete details on his plan for immigration.

By the end of 2027, the liberals target less than 5% of the population to be made up of non-permanent residents, which have accounted for the bulk of our recent population growth…

… and have been an important source of demand for the residential REITs. Since policy changes were announced late last year, there’s been slight pressure on occupancy levels. More could come if the immigration pullback holds…

… and immigration-dense markets like the GTA could feel the brunt of it. In theory, increasing rents could mitigate impact, but premium portfolios like Minto’s (MI-UN) have less wiggle room to do so.

U.S. budget sends Canadian defense higher

To close out the week we got the U.S. budget proposal, with $163B in planned cuts to support a 13% increase to defense spend that got the entire sector jumping.

We’ve been talking about defense a lot lately, but here’s one more thought: maybe it’s time to start thinking about a capital rotation within defense to services.

We think it makes intuitive sense. All the excitement has been around new spend linked to equipment procurement and projects. That’s been at least partially reflected in valuations.

Once these investments are made and projects get built, the serviceable market should expand and we wouldn’t be surprised to see the gap close.

At Berkshire’s AGM this weekend Warren Buffett announced this would be his last year at the helm of one of the most storied organizations.

What a career it’s been, returning 5,502,284% since 1964… 140x the S&P 500. They’ll be big shoes to fill for Canadian Greg Abel, who looks to be next in command. Let’s see what he does with BRK’s $350B in cash.

Flagging the grocers here, who continue to be large net sellers this year.

• Conservative MP gives up seat for Pierre Poilievre to run in byelection

• Trump reiterates 51st state threat as Carney prepares for critical White House meeting

• Bombardier buoyant despite trade hurdles, forecasts big demand for business jets

Of the $163B of cuts in the U.S. budget proposal, $6B was tied to NASA funding which sent shares of MDA Space (MDA) down nearly 15%. We think the market got this wrong and so does management - watch for a rebound today.

FRIDAY’S EARNINGS

Magna (MG) missed estimates, as global light vehicle production fell 3% Y/Y (more in its main markets). Full-year guidance remained unchanged, though the company is excluding any tariff impacts from the figure.

TODAY’S EARNINGS

FRIDAY’S ECONOMIC RELEASES

TODAY’S ECONOMIC RELEASES