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CIBC Market Expert Sid Mokhtari Advises Investors to Hold Cash Amid Shifting Economic Regime
Finance · Investment Banks/Brokers · globe_inside_market · 2026-09-23
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CIBC Capital Markets technician Sid Mokhtari warns of increased market volatility and suggests maintaining cash reserves as interest rates and yields rise.
What Happened
Market Outlook and Volatility: CIBC chief market technician Sid Mokhtari warns that investors are entering a new, more volatile economic regime characterized by rising bond yields and a hawkish Federal Reserve. He suggests that the current environment, marked by higher interest rates and tighter liquidity, warrants holding more cash on the sidelines to prepare for potential equity market corrections.
Sector Performance and Strategy: Despite broader market pressures, technology, healthcare, and financial sectors remain relative outperformers that could provide a cushion against downside risks. Mokhtari emphasizes a bifurcated approach to technology, favoring quality large-cap stocks over speculative growth, while noting that energy remains a strong, well-supported sector.
Commodities and Global Trends: The energy sector continues to show strength, with WTI crude oil expected to consolidate above US$90 per barrel. While copper stocks have lagged behind the underlying commodity price, the long-term trend remains positive, and gold is viewed as a potential opportunity as it approaches historical support levels.
Currency and Regional Outlook: The Canadian dollar is expected to face downward pressure relative to the U.S. dollar, potentially reaching 70 cents by year-end due to interest rate differentials. Investors are encouraged to consider geographic diversification, with global markets like Taiwan and Japan showing positive capital flows.