"Navigating Opportunities at New Highs" - with TD Asset Management's Ben Gossack

 TD Asset Management – Event with Ben Gossack (October 28, 2025)

Speaker: Ben Gossack, Portfolio Manager

NOTE:  Ben's comments are not meant nor should be construed as investment advice and should be taken in the context of a holistic investment plan with the assistance of your licensed Investment Advisor and Certified Financial Planner®.  The notes to follow are not an solicitation to invest but, rather, a high level overview of Ben's approach and thoughts.

Overview

The event centered on how TD’s Fundamental Equity Team is navigating current market highs, inflation, and global uncertainty. Despite investor anxiety about record equity levels, Gossack emphasized that volatility and uncertainty continue to create opportunity. His presentation, “Navigating Opportunities at New Highs,” highlighted how disciplined stock selection, trend awareness, and flexible allocation underpin TDAM’s investment process.

1. TD’s Equity Platform

• TD’s Fundamental Equity Team is the largest in Canada, with ~50 analysts and portfolio managers managing over $100 billion (20% of TD Asset Management’s total AUM).
• The team has received 11 industry awards and 24 FundGrade A+ recognitions in the past decade.
• Gossack leads mandates such as:
• TD Tactical Model Income, TD North American Dividend, TD Active Global Dividend, and TD Global Dividend ETF (TGD).
• Co-manages TD Global Equity Focused, TD U.S. Monthly Income, and TD U.S. Dividend Growth.

 2. Investment Philosophy

 Gossack broke the process into “heart, muscle, and brains”:

• Heart: Stock selection driven by “the human factor” — identifying where people and governments are spending money and which companies benefit from those behaviors.
• Muscle: Concentrating capital in high-conviction ideas and actively reducing exposure to lagging names.
• Brains: Pattern recognition, asking better questions, and adapting portfolio positioning to structural and cyclical shifts.

He cautioned that while many managers identify good ideas, few have the conviction to overweight their best ones. His team typically builds 45–50-stock concentrated portfolios focused on durable trends.

3. Market Context and Sentiment 

• Despite strong 2023–2025 returns, Gossack said investor sentiment remains anxious — “no one seems happy making money.”
• He rejected the idea that “new highs” are dangerous, noting historically they often lead to higher highs.
• He also argued that predictions of the “end of U.S. exceptionalism” are misplaced — the U.S. economy and equities, especially technology and industrials, remain dominant drivers. 

4. Key Themes and Sector Insights               

a.     Artificial Intelligence (AI):

·           AI remains a core theme, but Gossack is cautious: “Everything is becoming an AI stock.”

·           He differentiates between true AI plays (e.g., Nvidia, Broadcom—companies powering data centers) and AI adopters (retailers or banks using AI for efficiency).

·           Concern: Overexposure — many sectors (tech, utilities, financials) are now indirectly tied to the same AI trade.

b.     Industrial-Led Bull Market:

·           He believes the current bull market is industrial-led, not purely tech-driven.

·           Opportunities lie in engineering and construction, defense, and infrastructure spending (especially in Germany’s €600B public works program).

·           Example: Spanish multinational ACS Group cited as a play on global infrastructure and data center construction.

c.      Defense and Aerospace:

·           European defense spending continues to rise post-Ukraine conflict, benefitting firms like Rheinmetall (Germany) and Mitsubishi Heavy (Japan).

·           Aerospace maintenance and engine technology companies are strong performers (e.g., Pratt & Whitney suppliers).

d.     Homebuilders & Cyclicals:

·           U.S. homebuilders and related firms (e.g., D.R. Horton, Installed Building Products) show surprising strength since 2022, countering fears of a market crash.

·           He views this sector as a “healthy diversification away from AI.”

e.     Precious Metals:

·           Gold prices are strong, but miners lag. Gossack attributes this to investor skepticism about capital discipline in the mining sector.

·           Prefers royalty and streaming firms like Wheaton Precious Metals for better cash flow stability and dividends.

f.       Financials:

·           European banks have quietly outperformed for five years, benefitting from rising rates and recapitalization post-2010.

·           Canadian banks remain resilient despite trade and rate pressures; trend data suggests continued strength.

 5. Portfolio Management Approach 

• Gossack discussed how his team dynamically scales positions:
• Adds to outperforming stocks rather than trimming winners too early.
• Reduces exposure when ideas stall, even if fundamentals remain sound.
• Examples: trimming Zara (Inditex) and Thomson Reuters during stagnation phases; re-entering later when trends reaccelerated. 

He likened this discipline to “flexing muscles” in a portfolio — being active and adaptive, not passive. 

6. Geographic Insights 

• U.S. vs. Europe:
  Despite periodic underperformance, U.S. tech remains dominant; European industrials and financials offer selective opportunities.
• Canada:
  Banks remain solid; TDAM continues to monitor exposure to private credit and regional banks, acknowledging some isolated bad-debt risks. 

7. Tactical and Alternatives Allocation 

TD’s tactical balanced and income funds are evolving:

• Shifting up to 85% equity exposure (vs. 65% before) when conditions warrant.
• Introducing private alternatives for diversification:
• Private infrastructure
• Private real estate
• Private mortgage credit
  Managed through TD Greystone, which oversees $40B in private assets.
• Goal: smoother returns and reduced correlation to public markets. 

8. Broader Investment Message 

Gossack emphasized staying invested and “compounding through the noise.”

Key takeaways for advisors and investors:

• Avoid reacting to media pessimism — timing markets is impossible.
• Focus on long-term compounding and portfolio resilience.
• Understand client behavior and help them “stay on the compounding machine.”

He concluded with humility: “I don’t know the future — I just try to stay present, ask better questions, and position where human behavior and capital are moving.” 

Summary Insight 

Ben Gossack’s presentation reinforced that he feels that the current market rally is sustainable if grounded in structural trends — particularly AI, industrials, infrastructure, and selective cyclicals. His approach is pragmatic, focusing less on predicting the next correction and more on staying adaptive, concentrated, and data-informed while managing emotional biases among investors.