Markets in Canada and the United States remain near record highs, raising questions about how much further they can climb and where value still exists.
BNN Bloomberg spoke with Rebecca Teltscher, portfolio manager at Newhaven Asset Management, who said utilities and select energy stocks continue to offer attractive income and growth potential despite elevated valuations.
Key Takeaways
- Canadian and U.S. markets remain near record highs, sparking concern about overvaluation and speculative buying.
- Power demand from AI, data centres and reshoring is driving long-term opportunity in electricity generation.
- Brookfield Renewable Partners, Northland Power, Fortis and Emera stand out for stability and dividend growth.
- Arc Resources and Canadian Natural Resources are seen as undervalued energy names with strong management and yields above five per cent.
- Pembina Pipeline’s pullback may offer an entry point, with long-term growth potential and a rising 5.3 per cent dividend.
Read the full transcript below:
ANDREW: We heard earlier from Eddie Ghabour, who said you can invest in a market bubble — the problem is when it bursts. Let’s bring in Rebecca Teltscher, portfolio manager at Newhaven Asset Management. Rebecca, thanks very much for joining us. Do you think investors are just wearing rose-coloured glasses, assuming the AI boom will keep running?
REBECCA: It’s funny, because just before the break you were talking about real estate not doing so well, the labour market weakening, and even the trade tensions between the U.S. and China. We’re still in a U.S. government shutdown, so we’re really running blind when it comes to economic data. You’d think that would lead to weaker markets, but not at all — they just keep ramping higher. The more they rise, the more it feels like manic buying, and I think we’re getting close to bubble territory.
ANDREW: Incredible. You’ve got a few ideas in energy generation, but it’s interesting that AI companies are now measuring investment by how much electricity their data centres will consume.
REBECCA: Exactly. Investing in this market is tough because so many stocks are fully valued or even overvalued. As dividend-yield investors, it’s getting harder to find strong yields when stock prices keep rising faster than dividend growth. We’re looking for reasonably priced stocks in sectors with long-term, secular growth — ones that can hold up even if the economy slows.
Our main theme right now is power consumption. There’s enormous demand for electricity to fuel AI, data centres and chip production. You also have reindustrialization and reshoring in North America, which use huge amounts of power. At the same time, older coal plants are coming offline and being replaced by renewables, which are great but not always reliable. So in addition to renewable growth, we’ll need reliable baseload supply — that means nuclear and natural gas.
I’m not sure who the ultimate winners in AI or EVs will be, but I know they’ll all need a lot of power. That’s where we see opportunity.
ANDREW: Let’s gallop through a few names. Brookfield Renewable, a major global player, and Northland Power, huge in wind. And then the more traditional utilities — Fortis and Emera.
REBECCA: Right. Brookfield Renewable has been executing very well. They recently announced two big corporate deals — one with Microsoft last year for wind and solar, and one with Google last month for hydropower. These large tech companies are trying to lock in clean energy, and Brookfield is well positioned to supply it.
And just last week, Pembina announced a deal — it hasn’t said who with, but the rumour is Meta — to build a data centre in Alberta supported by a new natural gas plant.
As for Northland Power, one of its biggest projects right now is an offshore wind development near Taiwan — the same region as Taiwan Semiconductor. Manufacturing chips also requires enormous electricity, so there’s a clear connection there. Northland’s stock is up about 38 per cent, and while not as flashy as AI names, that growth looks sustainable given reasonable valuations.
ANDREW: Arc Resources has been under some pressure. You still see potential there?
REBECCA: We’re struggling to find value in a market that feels bubbly — it’s easier in Canada than in the U.S., but still challenging. Arc Resources is one of those names that’s come off short term because of a delayed project start. But as long-term investors, we view that as a buying opportunity. They have premium assets in the Montney, roughly 15 years of reserves, and strong management. They also have flexibility — some plants are shut in, ready to restart when natural gas prices rise during heating season. It’s a good long-term holding with a growing dividend.
ANDREW: And CNQ — the reliable one for so many investors, with strong returns and a big yield.
REBECCA: Absolutely. Canadian Natural Resources is one of the best-run companies anywhere — not just in Canada or the energy sector. They have premium assets, low decline rates, and a real culture of rewarding shareholders through dividends and buybacks. You’re getting paid to wait with a 5.5 per cent yield. The stock’s down a bit lately as oil prices have softened, but that’s largely due to easing geopolitical tensions. For us, that’s a short-term buying opportunity in a name we’d own forever.
ANDREW: Speaking of dividends — what about Pembina Pipeline?
REBECCA: Pembina recently signed what we believe is a deal with Meta to supply natural gas for that Alberta data centre. The stock surged above $60 but has since pulled back. There’s talk that KKR might sell its stake in Pembina Gas Infrastructure, and Pembina may issue equity to buy it. That could cause short-term dilution, but it’s the kind of move that supports long-term growth. The dividend yield is about 5.3 per cent and growing, so we’re happy to hold it.
This market makes it hard to find good value, but names like Arc, CNQ and Pembina have faced short-term pressures that create longer-term opportunity.
ANDREW: It’s interesting — the CFO of Citi said he sees “areas of froth” in the market but wouldn’t say which ones.
REBECCA: Exactly. It’s a self-fulfilling cycle. U.S. banks are reporting strong earnings right now, but that’s partly because markets are at all-time highs — so trading, investment banking and wealth management fees all go up. Then those good earnings push stocks even higher, reinforcing the cycle.
We’re in a U.S. government shutdown, flying blind on data, and yet the market keeps rising. In Canada, we already see weakness in housing and labour, and the U.S. likely isn’t far behind. Eventually, markets will get a wake-up call. Central bank easing can only go so far — a correction is inevitable. I don’t know when or how big, but it’s coming.
ANDREW: Rebecca, thank you very much.
REBECCA: My pleasure.
ANDREW: Rebecca Teltscher, portfolio manager at Newhaven Asset Management.
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This BNN Bloomberg summary and transcript of the Oct. 16, 2025 interview with Rebecca Teltscher are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.