Stan Wong's Market Outlook and Top Picks for June 2024

Insights from a Leading Portfolio Manager at Scotia Wealth Management

Editorial Team (ET)July 10, 2025

The global equity markets have been on a tear lately, much to the surprise of many analysts. With concerns about elevated inflation and higher interest rates looming, you’d think stocks would be struggling. But no, equities have shown remarkable resilience, with the MSCI World Index flaunting double-digit gains year-to-date. This rally has been fueled by a stronger-than-expected U.S. economy, where inflation is cooling and growth is steady. Near-decade-low unemployment rates are driving consumer spending and boosting corporate earnings. But what’s next? Let’s dive into Stan Wong's top picks and his take on the market outlook.

Stan Wong, a portfolio manager at Scotia Wealth Management, maintains an optimistic outlook for equity markets as the year progresses. Despite the ongoing concerns about inflation and interest rates, equities have demonstrated impressive resilience. Several factors contribute to this strength, including the U.S. economy's surprising robustness, characterized by tempered inflation rates and sustained economic growth. Low unemployment rates have also bolstered consumer spending and corporate earnings growth.

Wong points to potential monetary policy easing by global central banks, including the U.S. Federal Reserve and the Bank of Canada, as a significant positive driver for market sentiment. As inflation cools, central banks are expected to pivot towards a more accommodative stance, providing a tailwind for risk assets. Investor sentiment is buoyed by the significant increase in U.S. money market fund assets, which have surpassed the US$6 trillion mark. As interest rates decline, the yield on these funds will likely drop, prompting a shift towards higher-returning stocks.

However, Wong also cautions about the risks inherent in the current market environment. The fervor surrounding the artificial intelligence (AI) and broader technology sectors could lead to market volatility. While the AI revolution presents immense opportunities, excessive optimism and unrealistic expectations might cause setbacks. Persistent inflationary pressures could also lead central banks to maintain tighter monetary policies, affecting economic growth and market sentiment.

In managing his portfolios, Wong focuses on identifying high-quality, secular growth companies to strengthen his portfolio mandates. He favors sectors such as health care, consumer discretionary, financials, and technology, provided valuations are reasonable. His equity allocation comprises approximately 55% U.S. equities, 30% Canadian equities, and 15% international equities. Within his fixed income allocation, Wong favors government and investment-grade corporate bonds with both short and medium durations. This strategic allocation aims to enhance returns while prudently managing risk for clients.

Now, let's delve into Stan Wong's top picks for June 2024: Amazon.com Inc, Constellation Brands, and Mastercard.

Amazon.com Inc (AMZN NASD)

Amazon remains a dominant force in e-commerce, cloud services, digital streaming, and artificial intelligence. With nearly US$640 billion in projected 2024 revenue, Amazon continues to lead the e-commerce space. The company's Prime membership program, with over 200 million subscribers globally, drives loyalty and recurring revenue. Amazon Web Services (AWS) is a cornerstone of the company's growth, leading the rapidly expanding cloud computing market. Amazon's high-margin advertising business is scaling quickly, enhancing profitability. Additionally, Amazon is leveraging AI across its hardware, software, and cloud segments, positioning itself for long-term growth. With a clear uptrend channel of higher highs and higher lows, AMZN shares have been outpacing the broader S&P 500 Index since the beginning of 2023. Amazon is forecasted to achieve an annual earnings growth rate of almost 30% over the next several years. The company reports its next quarterly results on August 2nd.

Constellation Brands (STZ NYSE)

Constellation Brands is a leading company in the wine, beer, and spirits industry, with significant growth potential. The company's portfolio includes high-end beer, wine, and spirits brands well-positioned to benefit from favorable consumer trends. One of the key strengths of Constellation Brands is its exposure to the fast-growing beer category, particularly Mexican imports like Corona and Modelo. Additionally, the company is poised to benefit from the premiumization trend, where consumers are increasingly trading up to higher-end, more expensive alcoholic beverages. This trend supports long-term growth for the company. Constellation Brands generates strong free cash flow, supporting dividends and share buybacks. Management announced a new US$2 billion share buyback program last November and raised its quarterly dividend by 13% in April 2024. STZ shares present an attractive opportunity for investors, trading down about 10% below recent highs and near its 200-day moving average. Longer-term, Constellation Brands offers investors an exceptional combination of steady earnings and decent growth potential. The company is forecasted to achieve an annual earnings growth rate of more than 11% over the next several years. The shares offer investors a 1.6% dividend yield and the company is scheduled to report its next quarterly results on July 3rd.

Mastercard (MA NYSE)

Mastercard is a global leader in digital payments, benefiting from several favorable secular trends. With projected 2024 revenue of nearly US$28 billion, Mastercard operates in over 210 countries and 150 currencies. The company is well-positioned to benefit from the shift from cash to electronic payments, the growth of e-commerce, and the increasing adoption of mobile payments. As consumer spending and global trade continue to grow, Mastercard's transaction volumes and revenues should expand as well. The company has a solid balance sheet and generates strong free cash flow, allowing it to invest in growth, make strategic acquisitions, and return capital to shareholders through dividends and buybacks. Last December, management announced a new US$11 billion share buyback program and raised its dividend by 16%, demonstrating its commitment to enhancing shareholder value. MA shares have been outpacing the broader S&P 500 Index since late 2021. The shares look compelling today, trading down about 10% from recent highs and near its 200-day moving average. Mastercard is forecasted to achieve an average annual earnings growth rate of more than 15% over the next several years. The company reports its next quarterly results on July 26th.

In conclusion, the current market environment presents opportunities for further gains, albeit with potential risks. A balanced, long-term investment strategy is crucial for navigating market volatility. Stan Wong's top picks, including Amazon, Constellation Brands, and Mastercard, are well-positioned to capitalize on favorable market trends while managing risks.

Bloomberg

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