After a remarkable surge in North American equity markets throughout May, where the S&P/TSX Composite Index celebrated a 10-day rally and crossed the 26,000 mark for the first time, all eyes are on what June will bring. CIBC’s top market analyst, Sid Mokhtari, predicts this bullish trend isn't slowing down—anticipating a move above 27,000 in the coming months.

CIBC's Winning Strategy: A Track Record of Outperformance

Mokhtari’s monthly reports have proven invaluable, showcasing his Top 10 stock ideas that are strategically selected from the largest companies within the S&P/TSX Composite Index. His insights have yielded impressive results; his stock picks achieved an impressive 11.4% return in early 2025, significantly outperforming the broader index which posted a modest 5.85% gain. This trend isn’t new; Mokhtari's selections have consistently finished ahead of the index in previous years, highlighting his keen market acumen.

June’s Hot Picks: Stocks to Watch

For June, Mokhtari presents an updated lineup featuring nine newcomers and one returning stock: - **Aritzia (ATZ-T)** - **Eldorado Gold (ELD-T)** - **Exchange Income (EIF-T)** - **Killam Apartment REIT (KMP-UN-T)** - **MDA Space (MDA-T)** - **NGEx Minerals (NGEX-T)** - **Parkland (PKI-T)** - **Shopify (SHOP-T)** - **Sun Life (SLF-T)** - **Power Corp. (POW-T)** (previously featured)

Market Insights: Technical Patterns Indicate Strong Momentum

In a recent interview, Mokhtari elaborated on the notable ‘cup and handle’ and ‘pole and pennant’ patterns observed in the TSX Composite Index and the S&P 500. These patterns signal strong accumulation and indicate that, while a brief consolidation might occur, the upward momentum is anticipated to return soon.

June: A Month for Strategic Buying?

Mokhtari boldly proposes a shift from the old saying ‘sell in May and go away’ to ‘buy the dips in June and go away’. He emphasizes the strong health of market internals and breadth, which suggests that any upcoming dips should be viewed as prime buying opportunities—historically, a strong May leads to continued momentum into July.

Forecasts and Opportunities: Eyes on Growth and Bitcoin

CIBC's analysts remain optimistic, targeting high single-digit to low double-digit returns for both the S&P/TSX and S&P 500 indices this year, with potential price targets soaring up to 6,500 for the S&P 500. On the cryptocurrency front, Mokhtari predicts Bitcoin is unlikely to drop below $90,000, forecasting a bullish upside towards $150,000.

Emerging Sectors: Defensive Streaks vs. Offensive Strength

Analyzing sector performance, Mokhtari finds that the defensive sectors are currently lagging, while growth and momentum are gaining traction. Specifically, he sees a very positive landscape for financials and technology, hinting at the potential rise of stocks like Galaxy Digital and Strategy (formerly MicroStrategy).

Global Perspectives: Where to Invest Beyond North America?

For those looking at international opportunities, Mokhtari points to European ETFs, specifically highlighting Greece and Italy, which have shown strength. Meanwhile, ETFs focused on Hong Kong and Japan are also gaining attention, indicating a wider geographical investment strategy amid U.S. market fluctuations.

Conclusion: The Road Ahead

In conclusion, Mokhtari's analysis provides crucial insights for investors as we venture into summer. With robust technical patterns, promising stock selections, and a strategic buying strategy in place, there remain ample opportunities to harness market momentum and craft a winning portfolio this June.