Modern Investing Techniques — Episode 6

# Modern Investing Techniques

Date: March 26, 2026

💰 Modern Investing Techniques — AI-Powered Daily Market Intelligence

Canada hits the NATO 2% GDP defence target, opening fresh capital-flow opportunities in Canadian aerospace and defence names.

Market Pulse: Markets are mixed and cautious today. The S&P 500 closed at 6,545 (-0.7%), the NASDAQ Composite at 21,701 (-1.0%), and the TSX Composite at 32,335 (-0.1%). Geopolitical uncertainty around Iran is driving oil higher while stocks swing between hope and doubt on potential war de-escalation. Canadian investors should watch defence-sector strength on the NATO spending news and keep an eye on how any escalation in the Middle East affects energy and materials exposure in their TFSA or RRSP.

Strategy Spotlight

Defence-Spending Catalyst Strategy

This strategy involves identifying companies positioned to benefit from sustained increases in government defence budgets, then taking tactical positions when official spending targets are confirmed. Today’s announcement that Canada has officially reached the NATO 2% of GDP defence spending target (a goal set in 2014) provides exactly that confirmation signal after more than a decade of slow progress.

Implementation is straightforward: scan the TSX for Canadian-controlled aerospace, drone, and defence-technology firms, cross-reference recent contract wins or partnerships, and size positions at 3-5% of portfolio with a 6-12 month horizon. Use free screeners on Questrade or Wealthsimple to filter for companies with strong cash positions and low debt.

The strategy has historically performed best in the 12-24 months following major NATO or allied spending pledges, as procurement contracts eventually flow through. Risks include political reversals and long sales cycles. Canadian investors can hold these in TFSA or RRSP accounts to shelter any capital gains.

Source: bnnbloomberg.ca

Investor Education: Bid-Ask Spreads and Liquidity in Geopolitical News

Imagine you placed a market order for a small-cap defence stock yesterday morning right after the NATO spending headline hit. Your order filled 18 cents higher than the last quoted price, costing you an extra $270 on a 1,500-share position. What actually happened is that the bid-ask spread on that thinly traded name widened from 4 cents to 22 cents in the first 45 minutes after the news.

Market makers pull back liquidity when geopolitical or policy headlines create uncertainty, widening spreads to protect themselves. On the TSX, this effect is magnified for names with average daily volume under 250,000 shares. The pro tip most retail investors miss: always check the spread and 20-day average volume before hitting “buy.” Professionals use limit orders placed between the bid and ask rather than chasing momentum.

The biggest mistake is treating all stocks as equally liquid during news events. Instead, always verify real-time depth and set your limit order at or inside the current spread before entering.

Practice Investment of the Day

Disclaimer: This is a SIMULATED trade for educational purposes only. No real money is involved. This is NOT financial advice.

Trade Type: Weekly Hold

Today's Pick: None — Screening for Monday entry

Market: TSX / NASDAQ

Strategy: Waiting for confirmed volume and technical alignment on defence or critical-minerals names

AI Analysis:

• Catalyst: Multiple defence and mining stories today, but none yet show the combination of volume surge plus positive price action required for a high-confidence weekly hold.
• Technical Setup: Monitoring names with RSI (14-day) between 45-65 and price above the 20-day moving average; looking for volume at least 1.5× the 20-day average on any NATO-related move.
• Risk Assessment: Will only enter with a maximum 6% stop-loss from entry; avoiding names with wide spreads that could create slippage.
• Target: N/A this session
• Confidence Level: Low — single-factor catalyst without confirming volume or technical alignment.

Why This Teaches: This demonstrates the discipline of NOT trading when conditions are incomplete. Many retail investors jump on headlines and suffer whipsaw losses. Learning to wait for multiple aligned factors (catalyst + volume + technical confirmation) is one of the highest-edge habits you can build. We will revisit the defence sector on Monday with fresh data.

Source: bnnbloomberg.ca

Tools & Techniques

Ambient Noise Tomography (ANT) Survey Data as an Exploration Edge

Geophysical survey techniques like Ambient Noise Tomography are increasingly accessible to retail investors through company press releases and public data rooms. Global Uranium Corp. just announced plans to run an ANT survey at its Astro project in the Athabasca Basin. Savvy investors can track these announcements on the TSX or CSE, then use free tools such as Sedar+ or company websites to monitor results. When successful, ANT can dramatically de-risk early-stage uranium or copper projects by identifying subsurface targets before expensive drilling.

Source: bnnbloomberg.ca

Coinbase Token-Backed Down Payment Program

Coinbase’s new partnership with Better Home & Finance allows crypto holders to pledge digital assets as collateral for home down payments. For investors with concentrated crypto positions in their TFSA or non-registered accounts, this creates a potential liquidity bridge without triggering immediate taxable sales. The tool is still emerging; interested Canadians should monitor regulatory approval in Canada and compare margin rates versus traditional HELOCs before using crypto collateral.

Source: bnnbloomberg.ca

Quick Hits

Barrick delays Reko Diq project in Pakistan amid mounting security concerns

Barrick is extending its review and slowing development of the massive copper-gold project due to escalating security issues in Pakistan and the Middle East. This highlights the need for strict country-risk limits in resource portfolios.

Source: bnnbloomberg.ca

Bank of Montreal targets 15% return on equity on wealth and U.S. business growth

BMO announced a goal of more than 15% ROE by 2028, driven by expansion in wealth management and its U.S. operations. Canadian investors can watch whether the bank’s wealth segment outperforms broader Canadian banks in coming quarters.

Source: bnnbloomberg.ca

Volatus Aerospace Announces Strategic Collaboration with Sentinel R&D

Volatus has signed an MOU with Sentinel to develop advanced composite UAV structures, supporting Canadian sovereign drone capability. This adds to the growing Canadian defence-tech theme following the NATO spending announcement.

Source: bnnbloomberg.ca

Cerro de Pasco Resources Secures Access Agreement Over Entire Quiulacocha Tailings Area

The company gained surface access to the full tailings storage facility in Peru, unlocking the next phase of project development. Tailings reprocessing stories often provide asymmetric upside for junior miners.

Source: bnnbloomberg.ca

Financial Disclaimer: This podcast is for EDUCATIONAL and ENTERTAINMENT purposes only. Nothing discussed constitutes financial advice, investment recommendations, or solicitations to buy or sell securities. The "Practice Investment of the Day" uses SIMULATED trades with NO real money — it is a learning exercise to demonstrate analytical techniques. Past performance does not predict future results. Markets involve risk of loss. Always do your own research and consult a licensed financial advisor before making investment decisions. The host and Nerra Network have no fiduciary relationship with listeners.

Sources

bnnbloomberg.ca