Market Call: Gordon Reid's Outlook on U.S. Equities (May 21, 2026)

Why It Matters

Investors should reassess concentration risk amid leadership narrowness and may find tactical opportunities in out-of-favor sectors like health care and selected homebuilders, while avoiding value traps in high-multiple companies with weakening growth. Rebalancing toward quality and diversification could reduce downside if market leadership rotates.

Summary

Gordon Reid told BNNBloomberg that corporate fundamentals, not daily geopolitical headlines, have driven U.S. equity performance in the first half of 2026, and warned that heavy concentration in hyperscalers and chip names raises latent portfolio risk. He flagged health care as a deeply underweighted sector that could re-emerge as a leadership group and recommended quality-focused research when reallocating away from AI/tech. On individual names, Reid said Boston Scientific’s sharp sell-off reflects a disappointing guidance cut and lost share versus peers, suggesting investors consider reallocating rather than averaging down; he views homebuilders such as Lennar, Pulte and Toll Brothers as showing signs of bottoming and like the group longer term. Reid emphasized diversification and waiting for greater certainty before buying into high-multiple names that have slowed organic growth.

Original Description

Gordon Reid, president & CEO of Goodreid Investment Counsel, shares his outlook on U.S. Equities.

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