Barry Schwartz's Top Market Picks for June 2024

Barry Schwartz's Market Insights and Top Stock Picks for June 7, 2024

Editorial Team (ET)May 7, 2025

When Barry Schwartz, the Chief Investment Officer and Portfolio Manager at Baskin Wealth Management, shares his insights, investors pay close attention. With a focus on North American large-cap stocks, Schwartz provides a well-informed perspective on the current market conditions and his top stock picks as of June 7, 2024.

Market Outlook

Barry Schwartz presents a detailed analysis of the prevailing market conditions. He notes that synchronized global rate cuts have commenced, with Canada and the European Central Bank (ECB) leading the charge. Schwartz anticipates that the United States will follow suit by September, driven by slowing economic growth and persistent inflation. These rate cuts are expected to mitigate the overly restrictive monetary policies currently in place in G7 countries.

The financial markets have already responded positively, as evidenced by the double-digit returns year-to-date for U.S. indices. Despite the rising valuations, Schwartz sees numerous high-quality companies trading at reasonable levels, presenting attractive opportunities for investors.

The S&P 500 Index

The S&P 500 Index is currently trading around 21 times this year’s expected earnings, which might appear pricey at first glance. However, Schwartz emphasizes that factors such as decent organic revenue growth above inflation, rising profit margins, and double-digit earnings per share (EPS) growth justify a bullish outlook. With these positive indicators, it's reasonable to be excited about the market's future prospects.

Implications for Canadian Investors

Lower interest rates are beneficial for Canadian investors, particularly those focused on dividend-paying stocks. Over the past few years, many Canadian dividend payers have struggled due to high interest rates. As rates decrease, investors previously favoring money markets and Guaranteed Investment Certificates (GICs) are expected to shift their focus to high dividend payers, seeking better returns for their portfolios.

Top Picks

Barry Schwartz’s top stock picks reflect his strategic investment approach. Let's delve into each of these picks in detail.

MSCI (MSCI NYSE)

MSCI is a key player in the financial services industry, providing essential indexes and data to asset managers worldwide. Known for its asset-light, recurring revenue business model, MSCI boasts high profitability and stability. Its strong brand and indispensable products provide robust pricing power, ensuring the company’s competitive edge in the market.

Recent market volatility has presented an attractive entry point for MSCI shares. With growth drivers such as increased demand for financial data and analytics, MSCI’s future looks promising. Barry Schwartz considers MSCI a high-quality business that is well-positioned for long-term success.

CoStar Group (CSGP NASD)

CoStar Group is a global leader in providing proprietary data on real estate transactions. The company also owns several platform properties, including Apartments.com and Homes.com. With a perfect balance sheet and a history of double-digit revenue growth, CoStar stands out as a strong investment.

Schwartz highlights CoStar’s financial health as a significant factor in its favor. The recent pullback in shares offers an excellent entry point for investors, positioning CoStar for continued success and growth in the real estate data market.

Visa (V NYSE)

Visa is a global leader in the payments industry, facilitating secure and efficient transactions worldwide. Its strong brand and extensive network provide a competitive edge in the market. Visa has been a remarkable performer since its IPO in 2008, consistently compounding shareholder capital.

Despite being rangebound over the past five years, Visa’s fundamentals remain strong, making it a perplexing yet promising investment. Compared to its competitor, Mastercard, Visa trades at a discount. Given Visa’s solid fundamentals and strong market position, Schwartz considers it one of the best businesses globally, with significant upside potential.

Conclusion

Barry Schwartz’s top picks—MSCI, CoStar Group, and Visa—reflect his strategic approach to investment. Despite market volatility and rising valuations, these high-quality companies offer attractive entry points and significant growth potential. As global rate cuts take effect, investors can expect favorable conditions for large-cap stocks, particularly in North America. By focusing on strong fundamentals and growth drivers, Schwartz provides a roadmap for navigating the current market landscape.

Bloomberg

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