Defensive, Diversified, and Ready: David Burrows’ Latest Top Picks
Barometer Capital's David Burrows plays defense with gold, gas, and cash as market leadership shifts beyond U.S. borders.
Editorial Team (ET)July 7, 2025
David Burrows, president and chief investment strategist at Barometer Capital Management, is no stranger to market cycles. With decades of experience steering client portfolios through periods of volatility and strength alike, his current stance is firm and unambiguous: get defensive, get global, and above all—get selective.
North American large caps have long been the bread and butter of institutional and retail investors alike. But in 2025, the story has started to shift. According to Burrows, the narrowing market breadth, structural rotation, and global dislocation triggered by widening tariff wars are not just noise—they’re signals. Since June 2024, market leadership has quietly pivoted away from over-owned technology and semiconductor names. The result? A subtle but profound shift toward inflation-sensitive assets.
Raising Cash and Cutting Risk
Burrows and his team at Barometer have taken a cautious approach. They've raised cash systematically, imposed stop losses with discipline, and refrained from new investments where internal market breadth signals remain weak. In his view, the U.S. equity market is at a crossroads, pressured by a rising risk of recession, a weakening dollar, and declining confidence in U.S. Treasuries. The rest of the world, by contrast, looks more constructive. Especially sectors aligned with inflation protection—like financials, global energy, and precious metals.
Currently, Barometer client accounts are heavily defensive: up to 45 percent of holdings in cash and short-term bonds, around 15 percent in precious metals, another 15 percent in global equities, and the remainder in North American names. It's not a vote against equities, per se. It's a recognition of changing winds.
Wheaton Precious Metals: Solid Gold in Volatile Times
Burrows is particularly bullish on one metals streaming company: Wheaton Precious Metals. With exposure to both gold and silver and zero debt on its books, WPM stands out as a quality operator in a sector catching its second wind. As structural inflation pressures build and monetary policy softens to accommodate rising debt levels, the setup for gold and silver is increasingly compelling. Wheaton is ideally positioned with a diversified portfolio spanning 18 operating mines and over $2 billion in liquidity. Its revenue mix—60 percent gold and 38 percent silver—has allowed it to benefit meaningfully from recent price gains. And with a dividend that’s grown 12 percent annually over the past five years, it checks both growth and income boxes.
Expand Energy: America’s LNG Powerhouse
Another top pick is Expand Energy, the largest U.S. natural gas producer following its 2024 mega-merger between Chesapeake and Southwestern Energy. This company, now operating under the EXE ticker on the NASDAQ, commands massive production in Pennsylvania’s Marcellus and Louisiana’s Haynesville basins. Importantly, it’s the dominant supplier of gas to Gulf Coast LNG terminals—a crucial role as global demand for liquefied natural gas rises amid geopolitical tensions and energy security concerns.
Despite its relatively high debt load—six times EBITDA—Burrows isn’t worried. Leverage is steadily being de-risked, thanks to long-term supply contracts and merger synergies already proving more robust than initially forecast. The firm was added to the S&P 500 in March, further validating its newfound scale. While dividend growth remains uncertain for now, the company yields 2.4 percent and is expected to prioritize debt reduction through 2025 before initiating a growth-oriented dividend policy in 2026.
Why Cash Still Matters
His third pick may seem unconventional at first: cash. But in the context of Barometer’s playbook, it makes perfect sense. Holding cash gives the firm both flexibility and optionality—especially when market breadth is weak. Rather than chase trends or try to predict short-term movements, Burrows prefers to wait for internal strength before redeploying capital. It’s a discipline that has served him well across multiple cycles.
The Global Advantage
Looking at the broader picture, Burrows sees stronger fundamentals in global markets, particularly those outside the U.S. The MSCI World ex-U.S. index is structurally better positioned for an inflationary regime, given its heavier weighting to industrials, materials, and financials—sectors that tend to outperform during late-cycle expansions. Add to that a shifting capital flow dynamic, where global investors are finally pulling money out of the U.S. after years of overexposure, and the stage is set for international equities to shine.
A Sober View of the U.S. Market
At the same time, Burrows remains cautious on the U.S. The combination of premium equity valuations, a disjointed bond market, and protectionist trade policies is creating cracks in the foundation. The carry trade unwind—driven by a weaker dollar and deteriorating bond yields—could continue to pressure U.S. asset prices for some time. That’s why Barometer is sticking with what works: high-quality, inflation-protected assets and a sizable cash reserve ready to move when market internals improve.
Following Fundamentals, Not Fads
Burrows isn’t betting against America. But he is betting that the next leg of outperformance may come from places and sectors investors have long overlooked. Whether it's gold streaming deals, LNG infrastructure, or simply the optionality that cash affords, the message is clear: don’t follow yesterday’s leaders. Follow the money—and the fundamentals.
Conclusion
David Burrows’ top picks reflect a deeply analytical approach to market conditions that have shifted dramatically in less than a year. With Wheaton Precious Metals, he’s betting on hard assets with reliable yield. With Expand Energy, he’s doubling down on U.S. energy independence and global LNG demand. And with cash, he’s preparing to pounce when conditions improve. This isn’t about panic or pessimism. It’s about playing defense when offense won’t work—and being ready for the next pivot when the setup finally turns favorable again.
