Keith Richards’ Top Picks for Oct. 20, 2026

Published: October 20, 2026 at 1:17p.m. EDT Keith Richards, president and chief portfolio manager at ValueTrend Wealth Management, shares his outlook on Technical Analysis. Keith Richards, President, Chief Portfolio Manager, ValueTrend Wealth Management Focus: Technical Analysis Top Picks: State Street Consumer Discretionary Select Sector SPDR ETF , WSP Global , BMO Equal Weight Global Base Metals Hedged to CAD Index ETF MARKET OUTLOOK: On my last BNN show in September, I called ValueTrend’s approach to the markets as the “buy anything but tech trade”.

That, of course, was contrarian in light of the market’s sole focus on tech stocks at the time. It would appear that my call for buying “anything else but tech” is coming to fruition. A rotation into undervalued stocks has begun.

My view has not changed. The top 10 stocks now hold roughly 40 per cent of the S&P 500 index. Sheer lunacy!!!

Soon, nearly 50 per cent of the S&P will be a roll of the dice on AI.The passive share of the market – aka retail investors- hold Index ETF’s. Their exposure keeps climbing. Moreover, large institutional investors such as pension managers also hold significant passive index exposure.

One source I read showed passive index exposure to equities is well over 50 per cent. Why does this matter? More and more equity sits locked down at large institutions and ETF behemoths State Street, Vanguard, and BlackRock, etc.

The “market” is becoming dangerously under-diversified and illiquid. These institutions hold the 10 big tech names in They hold & do not sell, given their passive mandate. If & when any of the top tech stocks disappoint – a lack of liquidity will impact them strongly if it becomes a rush to the exits.

Why? Well, in a panic selling situation you will have a smaller percentage of buyers, given the huge per cent of float held in passive index platforms. Who will absorb the selling?

Hedge funds, individual traders, etc are quick to exit when their sell rules trigger. Look what happened to TXN in June & July – a 30 per cent drop with a massive gap down in one day alone! Decades of trading experience tells me that, in years when the S&P 500 is up on narrow leadership, buying a basket of beaten-down names will dramatically outperform the index from the fourth quarter through the second quarter of the following year.

Profit taking, rebalancing overweight positions in the tech names, followed by further pressure on oversold stocks via tax loss selling will likely present massive opportunity in those undervalued names. How to set BNN Bloomberg as your preferred source on Google Market-moving news, fast: Get the BNN Bloomberg App now Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/newsletters TOP PICKS: Keith Richards' Top Picks: State Street Consumer Discretionary Select Sector SPDR ETF, WSP Global Keith Richards, president and chief portfolio manager at ValueTrend Wealth Management, shares his top stock picks to watch in the market.

State Street Consumer Discretionary Select Sector SPDR ETF (XLY NYSE) Consumer discretionary ETF. This is an oversold trade to US$120 target then we review to sell. WSP Global (WSP TSX) This is an oversold trade to $200—then will review to sell.

BMO Equal Weight Global Base Metals Hedged to CAD Index ETF (ZMT TSX) BMO metals ETF. We view the metals as oversold – or target is $140 then will review to sell. DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND XLY NYSE Y Y Y WSP TSX Y Y Y ZMT TSX Y Y Y PAST PICKS: AUG.

17, 2026 Keith Richards' Past Picks: Tourmaline Oil, Cameco & General Motors Keith Richards, president and chief portfolio manager at ValueTrend Wealth Management, discusses his past stock picks and how they're doing in the market today. Tourmaline Oil (TOU TSX) Then: $60.09 Now: $66.21 Return: 10% Total Return: 11% Cameco (CCO TSX) Then: $136.94 Now: $113.19 Return: -17% Total Return: -17% General Motors (GM NYSE) Then: $84.37 Now: $77.74 Return: -8% Total Return: -8% Total Return Average: -5% DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND TOU TSX N N N CCO TSX Y Y Y GM NYSE Y Y Y