David Burrows Reveals Top Investment Picks for August 2025

David Burrows, Chairman and Chief Investment Officer of Barometer Capital Management, has outlined his top investment picks for August 20, 2025. His recommendations include MDA Space, Hudbay, and the Vanguard FTSE World Ex US ETF. Burrows’ insights come during a time when equity markets are navigating a complex seasonal landscape, characterized by solid internal trends and varying performances across sectors.

As Burrows notes, a healthy market typically features a mix of leaders and laggards, allowing investors to identify opportunities. Presently, there is a notable divergence in stock correlations, indicating that the market is sorting investments without a dominant macroeconomic concern. Internationally, both developed and emerging markets are outperforming U.S. equities in terms of breadth and performance, suggesting a refreshing variety for investors’ portfolios. This trend also extends to Canadian stocks.

Market Trends and Investment Focus

Barometer Capital seeks to maintain a cash position of approximately 5% to 7% as the fall approaches. The firm’s portfolio strategy concentrates on sectors such as dividend growth, cash-flow generation, financials, industrials, communications, and materials. Given the persistent nature of inflation, Burrows advocates for hedging portfolios with gold instead of bonds, which continue to face challenges globally.

Burrows highlights three key investment picks that reflect current market dynamics.

MDA Space, listed on the Toronto Stock Exchange as MDA, is well-positioned within the burgeoning space economy, which industry analysts from Novaspace estimate could grow from US$600 billion to nearly US$1 trillion in the coming years. The company operates in three main segments: robotics and space operations, satellite systems, and geo-intelligence. MDA boasts a substantial backlog of US$6.4 billion, providing significant revenue visibility for the future. Furthermore, the firm is capitalizing on expected increases in defense budgets, which could bolster its geo-intelligence division.

Hudbay, trading as HBM on the Toronto Stock Exchange, is a multi-mine operator focused on copper and gold. The company is currently developing the Copper World project in Arizona and recently secured a US$600 million financing agreement with Mitsubishi. This deal is expected to fully fund the project’s development without the need for additional fundraising, positioning Hudbay for accelerated growth in the U.S. market, where the government aims to expedite domestic copper production.

The Vanguard FTSE World Ex US ETF (VEU) represents a strategic play for both international and domestic investors. With a historical focus on U.S. equities due to a strong dollar and weaker global markets, Burrows believes there is now a shift toward global markets. The ETF offers exposure to a diversified range of sectors, making it an appealing option as international equities begin to show stronger performance.

Performance of Past Picks

Reflecting on his previous recommendations from September 4, 2024, Burrows noted several successful investments. Imperial Oil (IMO) has risen from $96.04 to $115.72, marking a 20% return. Sprott Physical Gold Trust (PHYS) achieved an impressive increase from $26.25 to $35.56, resulting in a 35% return. Additionally, JPMorgan (JPM) has seen its stock value climb from US$219.33 to US$290.37, yielding a 32% return.

Burrows’ insights highlight the evolving landscape of investment opportunities in North America and beyond, underscoring the importance of adaptability in a fluctuating market environment. As investors consider their options, Burrows’ focus on sectors such as space, precious metals, and diversified global equities provides a roadmap for navigating the complexities of today’s financial landscape.