From sanitation workers in Philadelphia to Boeing machinists in Missouri to nurses in California, thousands of workers across the country went on strike last year to demand higher pay, better benefits, and safer working conditions. New data from the Bureau of Labor Statistics (BLS) show that 306,800 workers were involved in 30 major work stoppages in 2025, a 13% increase from 2024. This is likely an undercount of strike activity given data limitations. However, the number of workers involved in major strikes remains elevated compared with the strike activity that occurred in the early 2000s (see Figure A).

Figure A

Most major work stoppages in 2025 (17) took place in the public sector. Six involved workers at public colleges and universities, including a five-day strike involving 1,400 custodial, maintenance, and services workers at the University of Minnesota where the Teamsters secured higher wage increases and other concessions. Public administration had five major work stoppages and the health care sector had four major work stoppages.

Thirteen major work stoppages took place in the private sector. Seven involved health care workers, including a historic 46-day strike involving 5,000 nurses at Providence Hospitals where the Oregon Nurses Association secured substantial wage increases, better staffing plans for patient care, and guaranteed pay for missed breaks or meals. Manufacturing and retail trade had two major work stoppages each.

Major work stoppages took place in 15 states across the U.S. in 2025. The five states with the most stoppages were California (18), Washington (3), Colorado (2), Illinois (2), and Oregon (2). Some strikes took place across state lines: For example, the five-month strike involving 3,200 Boeing machinists occurred in both Missouri and Illinois where the International Association of Machinists and Aerospace Workers secured a 24% general wage increase during the length of the contract.  

As noted above, there are limitations to the BLS data, which only include information on work stoppages (both strikes and lockouts) involving 1,000 or more workers and lasting one full work shift between Monday–Friday, excluding federal holidays. For example, the 2025 data did not capture a four-day strike involving 580 hockey players and the East Coast Hockey League because it didn’t meet the size limitations.

Given that a majority (58%) of private-sector workers are employed by firms with fewer than 1,000 employees, these size and duration limits mean that BLS is not capturing many workers who walked off the job in 2025. While BLS shows 30 major work stoppages in 2025, Cornell’s Labor Action Tracker reports 303 work stoppages—298 strikes and 5 lockouts.

Policymakers should strengthen workers’ right to strike

Strikes are a powerful tool that workers can use to rectify the imbalance of bargaining power in the labor market. At a time when affordability and rising income inequality are at the front of workers’ minds, strikes can provide critical leverage to win wage gains, maintain and expand benefits, and improve working conditions. The National Labor Relations Act provides most private-sector workers, whether they are in a union or not, the right to strike. However, bad National Labor Relations Board (NLRB) and Supreme Court decisions have eroded this right over time. For example, in NLRB v. Mackay Radio & Telegraph Co., the Supreme Court ruled that employers can legally hire permanent replacements for striking workers in some cases.

There is no federal law that gives public-sector workers the right to strike, but a dozen states have extended this right to some state and local government workers. Even with these limitations, thousands of workers across the country and across sectors went on strike to demand fair pay and improved working conditions.

Policymakers—on the federal and state level—should pass laws that strengthen workers’ right to strike. Congress should pass the Protecting the Right to Organize (PRO) Act, which strengthens private-sector workers’ right to strike by eliminating the prohibition on secondary strikes, allowing the use of intermittent strikes, and prohibiting employers from permanently replacing striking workers. Congress should also pass the Striking and Locked Out Workers Healthcare Protection Act, which would prevent employers from cutting off workers’ health care as a form of retaliation, and the Food Secure Strikers Act, which would allow striking workers to qualify for Supplemental Nutrition Assistance Program (SNAP) benefits.

State lawmakers should extend full collective bargaining rights, including the right to strike, to all public-sector workers. State lawmakers should also join New Jersey, New York, Oregon, and Washington state in making striking workers eligible for unemployment insurance benefits.

OMERS released a press release stating its economic contribution to Ontario grows to $15.3 billion, delivering stability and social value for members and communities:

OMERS latest economic and social value analysis reveals that pensions do far more than support retirees; they fuel local economies, drive job creation, and provide lasting stability for communities across Ontario.

New data from the Canadian Centre for Economic Analysis (CANCEA) shows OMERS added $15.3 billion to Ontario’s GDP in 2025 and its activities benefitted 1 in 11 households, confirming its importance to the province’s economy. The research into the social value generated across Ontario by OMERS in 2025 – a year marked by global economic uncertainty - demonstrates the meaningful positive impact delivered to Plan members and their communities.

With more than 665,000 members, OMERS continues to deliver strong economic value through the spending of pension benefits, ongoing operations, and investments in communities across the province.

“OMERS is a powerful economic engine for Ontario,” said Jonathan Simmons, OMERS Chief Financial and Strategy Officer. “In 2025 alone, our activities generated billions in GDP and helped support more than 135,000 jobs across the province. These results underscore how pensions don’t just support retirees—they help strengthen local economies, create jobs, and provide a stable foundation.”

Beyond its economic impact, the research highlights the growing social value of OMERS defined benefit pension, particularly in today’s challenging economic environment.

CANCEA’s social value survey found that OMERS retirees report significantly high levels of life satisfaction, financial security, and overall well‑being, a difference researchers describe as the “stability dividend.”

“Every month, OMERS pensions reach communities across Ontario, providing reliable income that retirees can count on,” said OMERS Chief Pension Officer Celine Chiovitti. “This report demonstrates just how meaningful that stability is, not only for our members, but for the local businesses, services and communities they support. These findings reaffirm the value of a secure, defined benefit pension and show how OMERS continues to make a positive impact across generations.”

The study found that Defined Benefit (DB) pension members are significantly more likely to support their communities through charitable giving, with 61% of non-retired DB members donating $100 or more annually to charity. OMERS active members have higher workforce retention, with 90% citing their pension as a key reason for staying with their employer.

“By supporting local jobs and helping retirees enjoy greater dignity and confidence, OMERS plays an important role in Ontario’s social and economic fabric,” said Ms. Chiovitti.

“These findings highlight why defined benefit pensions are so valuable to current retirees and to the province’s continued well-being,” adds Dr. Paul Smetanin, President and CEO of CANCEA.

For more information, explore Essential Stability: OMERS continued impact on Ontario's Economy and members' livesOpens new window.

A growing economic impact

The new report shows that OMERS activities contributed to:

• $15.3 billion in provincial GDP (an 11% increase from 2023 and a 28% increase from 2020).

• 135,200 jobs across Ontario, including almost 40,000 jobs in rural communities.

• Nearly $4.2 billion in combined federal and provincial tax revenue.

• In total, more than 832,000 Ontarians - the equivalent of 1 in 11 households - benefited from OMERS activities in 2025.

Impact across all regions of Ontario

OMERS contribution to economic activity is felt across every region:

• Greater Toronto Area: 71,500 jobs; $7.9B GDP contribution

• Southwestern Ontario: 25,800 jobs; $2.7B GDP

• Eastern Ontario: 16,800 jobs; $1.7B GDP

• Central Ontario: 14,900 jobs; $2.4B GDP

• Northern Ontario: 6,200 jobs; $0.6B GDP

Social value and essential stability

The social value of DB pensions has shifted from offering a 'lifestyle advantage' in 2020 to providing 'essential stability' in 2025, highlighting the OMERS role as a stable part of Ontario’s social infrastructure.

OMERS retirees scored high in life satisfaction. This reflects the well-being associated with retirement support programs like OMERS.

Health and well-being

DB retirees are more likely to report lower stress, positive mental health, and good physical health.

Community impact

Charitable Giving (Not Yet Retired): Active DB members are more than twice as likely to donate $100 or more each year to charity.

Charitable Giving (Retired): 75.7% of DB retirees donate significant amounts to charity.

Volunteering: 61% of OMERS retirees volunteer in their communities.

Workforce retention

Keeping employees: OMERS active members have higher workforce retention, with 90% citing their pension as a key reason for staying with their employer.

Retirement planning confidence

DB Members: 93% say their pension plays a meaningful role in their retirement planning.

About OMERS

OMERS is a jointly sponsored, defined benefit pension plan, with more than 1,000 participating employers ranging from large cities to local agencies, and 665,000 active, deferred and retired members. Our members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers, and originating and managing a diversified portfolio of high-quality investments in government bonds, public and private credit, public and private equities, infrastructure and real estate.

Alright, I was going to talk about OMERS again but today is Pension Awareness Day in Ontario and Don Peat at OMERS sent me this press release which is worth highlighting.

Worth noting again what Jonathan Simmons, CFO & CSO at OMERS states above:

 “OMERS is a powerful economic engine for Ontario,” said Jonathan Simmons, OMERS Chief Financial and Strategy Officer. “In 2025 alone, our activities generated billions in GDP and helped support more than 135,000 jobs across the province. These results underscore how pensions don’t just support retirees—they help strengthen local economies, create jobs, and provide a stable foundation.”

There is no question OMERS and other large defined benefit plans in Ontario do their part in helping that province's economy over the long run and it's important to highlight this.

OMERS quantifies it and while it and other top Canadian pensions get criticized in the media for not investing enough in Canada relative to the US, the truth is they do invest across public and private companies and have a material impact on the economy.

By the way, Vincent Morin, President of Trans-Canada Capital shared this with me after reading my post earlier this week on top pension funds investing in the US:

I don’t usually comment publicly on these issues, but this one matters to me. 

Many are missing an important point. Yes—fiduciary duty, diversification, and strong risk‑adjusted returns must drive pension investing. And I also agree that adding constraints is not a good idea. But beyond where assets are invested, we should also look at where management fees go. When Canadian pension plans hire managers with a strong local presence, the fees flow back into the Canadian economy through jobs, business activity, and taxes. When plans hire foreign firms with no real Canadian footprint, those profits, salaries, and taxes go offshore. With the rise of alternatives, a large share of fees paid by Canadian plans now ends up abroad, amounting to billions annually. 

Where a firm is based also influences where capital ultimately gets deployed and which ecosystems grow. A Canadian PE firm with a global mandate is still more likely to invest in Canadian projects than one based in Texas or California. Location shapes networks, deal flow, and future Canadian headquarters. 

There is also an asymmetry in regulation. Under ERISA, U.S. pension fiduciaries face personal liability if they hire a non‑SEC‑registered foreign manager, which discourages them from hiring Canadian firms (SEC registration is quite a burden for small firms). Canada has no equivalent barrier; foreign firms can compete freely here. The protectionism is one‑way. 

Of course, I am biased—we are trying to win clients. But at equal talent and expected returns, Canadian allocators should consider firms with a strong domestic presence. In our own large plan, the Canadian based alternative managers we hired have performed just as well as foreign ones. We must remain global investors, but even a marginal shift toward local providers—when mandates can be managed from Montreal, Toronto, Calgary, Vancouver, or Halifax—strengthens the Canadian ecosystem and economy. 

I thank Vincent for his wise insights and agree with him.

Maple 8 funds have allocated to Canadian private equity and venture capital, not so much to Canadian alpha managers (hedge funds). 

In fact, apart from La Caisse which has a seeding/ growth mandate in Quebec to all asset managers, no other Canadian pension fund has an explicit mandate to invest in Canadian hedge funds.

Vincent rightly notes that those fees go right back into the Canadian economy. 

I'll publicly plug Trans-Canada Capital here because I think they do excellent work and their absolute return fund is second to none. Well worth looking into them. 

That's all from me, the main message here is OMERS does a lot to support the Ontario economy through direct and indirect jobs, through its retired and active members.

And if you really want to appreciate all that OMERS and other large DB plans across Canada do to bolster the domestic economy, listen to the podcast below where Avis Favaro discusses 'aging without dignity', it's sobering. 

From going without electricity to relying on food banks, Canada’s seniors are struggling to age with dignity. Data shows that 1 in 5 live at the poverty line, with rent and housing eating up their meagre incomes. As well, 91% of seniors say they want to live at home, but the support isn’t always there — for example, home care may not reach seniors in rural communities. 

All of this is leaving our stressed health systems to fill the gap. And the pressure is only growing. In fact, in 2026, Canada officially became a super-aged nation — meaning that at least 20% of the population (1 in 5 people) is age 65 or older.

In this episode, host Avis Favaro speaks with seniors across Canada who are struggling to make ends meet, as well as with Dr. Samir Sinha — a geriatric specialist at the Sinai Health System and an advisor to Canada’s National Institute on Ageing — on why, despite decades of warning, our country seems wholly unprepared to care for our aging population.

Business Wire reports Paradigm signs definitive agreement to be acquired by Patient Square Capital:

WALNUT CREEK, Calif.--(BUSINESS WIRE)--Paradigm (“Paradigm” or the “Company”), a specialty care management organization focused on delivering solutions that improve outcomes for individuals with complex injuries and diagnoses, today announced that it has entered into a definitive agreement to be acquired by Patient Square Capital (“Patient Square”), a leading health care investment firm.

This planned investment by Patient Square reflects a long‑standing relationship with Paradigm’s leadership and deep familiarity with the Company’s mission and performance. It underscores Paradigm’s proven ability to manage complex, high‑acuity cases and its growing leadership in payment integrity, home health, and network services. It also reflects strong confidence in the Company’s ability to deliver measurable cost savings and improved outcomes for patients and clients in both the workers’ compensation and health care payer sectors. The transaction marks the successful conclusion of Paradigm’s partnership with OMERS Private Equity.

“Patient Square shares our commitment to improving outcomes for people facing the most complex health challenges. Their partnership will help Paradigm extend our proven model in workers’ compensation and accelerate our impact across the broader health care landscape,” said John S. Watts, Jr., CEO, Paradigm. “We are proud of the progress achieved in partnership with OMERS, and grateful for their support of our strategy and investment in our team and platform, which helped position Paradigm as a leader in complex care management.”

“Paradigm has built a leading business that delivers reliable outcomes in complex care management,” said David Katz, Partner at Patient Square. “We’re excited to partner with this seasoned team as the Company accelerates its growth and expands its impact for patients and payers.”

The transaction is expected to close in the first half of 2026. Leerink Partners served as lead financial advisor to Paradigm. Truist Securities, Inc. also served as financial advisor to the Company. Weil, Gotshal & Manges LLP is serving as legal advisor to Paradigm. Greenberg Traurig is acting as legal counsel to Patient Square, and UBS Investment Bank and Santander are serving as its financial advisors.

About Paradigm

Paradigm is a specialty care management organization, focused on improving the lives of people with complex injuries and diagnoses. For nearly 35 years, the company has been a pioneer in value-based care, generating the very best outcomes for patients, payers, and providers in the workers’ compensation and healthcare markets. Paradigm impacts complex, high-cost care and spend categories through risk-based clinical solutions and case management, specialty networks, home health, shared decision support, and payment integrity programs. The company consistently delivers proven cost savings, while improving outcomes across the continuum of care. For more information, please visit www.paradigmcorp.com.

About Patient Square Capital

Patient Square Capital is a dedicated health care investment firm with approximately $17 billion in assets under management. The firm aims to achieve strong investment returns by partnering with growth-oriented companies and top-tier management teams whose products, services, and technologies improve health. Patient Square utilizes deep industry expertise, a broad network of relationships, and a partnership approach to make investments in companies that will grow and thrive. Patient Square invests in businesses that strive to improve patient lives, strengthen communities, and create a healthier world. For more information, visit www.patientsquarecapital.com.

OMERS Private Equity recently announced the sale of Paradigm:

Transaction delivers significant value for OMERS members and positions Paradigm to sustain investment in innovation and extended capabilities

New York, NY – OMERS Private Equity (OPE) announced today that it has entered into a definitive agreement to sell Paradigm, a leading specialty care management organization, to a leading health care investment firm.

Since its investment in Paradigm in October 2018, OMERS and the Paradigm leadership team have worked closely together to transform the company into a robust, data-driven specialty care management platform delivering value-based solutions for individuals with complex injuries and diagnoses, serving workers’ compensation and group health payors. During OMERS ownership, Paradigm broadened its offering across workers’ compensation into adjacent healthcare end markets, expanded its capabilities in complex case management, home-based care, payment integrity and specialty networks, and invested in technology, analytics and clinical talent to support sustainable growth.

“OMERS has been an outstanding partner to Paradigm, backing our strategy, investing in our people and capabilities, and sharing our long term commitment to improving outcomes for some of the most complex patient populations,” said John Watts, Chief Executive Officer of Paradigm. “We are well positioned as we move into our next chapter, extending our proven, value based model and continuing to deliver meaningful results for patients, payors and providers.”

“The sale of Paradigm represents a great outcome for OMERS and our members and marks an important milestone for a business we have been proud to back for many years,” said Geoffrey Bird, Co-Head of Private Equity at OMERS Private Equity. “Paradigm has established itself as a differentiated leader in complex care management and cost containment and we look forward to watching their continued success as they move towards a new phase of growth."

The sale represents the successful realization of OPE’s long-standing partnership with Paradigm marked by a period of strong operational and financial performance, and is consistent with OPE’s thesis driven, partnership first strategy of backing market leading, mission critical businesses on behalf of OMERS more than 640,000 members. The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.  

Even though financial details were not disclosed, this is another great distribution for OMERS Private Equity. 

Recall, in December, OMERS Private Equity announced the sale of CBI Health’s home care business to Extendicare (I covered it here). 

At the time I noted: 

[..] carving out CBI Home Health and selling it to Extendicare for $517 million was a great way to realize value on this deal.

OMERS PE did its job to nurture and help grow the operations at CBI Health which it still owns (the physiotherapy and rehabilitation services sector) and realized great value for its members on this distribution.

This is also a great acquisition for Extenidcare and it will help solidify the company as Canada's leader in the home care business.

This transaction with Paradigm is expected to close in the first half of 2026.  

OMERS Private Equity did its job nurturing this company since 2018, adding value, and now Patient Square Capital has acquired it for an undisclosed amount to take it to the next level. 

The key points were in the OMERS PE press release:

“OMERS has been an outstanding partner to Paradigm, backing our strategy, investing in our people and capabilities, and sharing our long term commitment to improving outcomes for some of the most complex patient populations,” said John Watts, Chief Executive Officer of Paradigm. “We are well positioned as we move into our next chapter, extending our proven, value based model and continuing to deliver meaningful results for patients, payors and providers.”

“The sale of Paradigm represents a great outcome for OMERS and our members and marks an important milestone for a business we have been proud to back for many years,” said Geoffrey Bird, Co-Head of Private Equity at OMERS Private Equity. “Paradigm has established itself as a differentiated leader in complex care management and cost containment and we look forward to watching their continued success as they move towards a new phase of growth."  

Alexander Fraser is the Global Head of Private Equity at OMERS, responsible for the overall leadership and performance of the business. He joined OMERS in March 2025 and is based in New York.

Clearly he has directed his troops to sell some assets to shore up liquidity and realize on gains and he is setting the course of their new strategy.

More on that next week when I cover OMERS' 2025 results. 

Below, Paradigm CEO John S. Watts, Jr. sits down with R&I at the 2019 National Workers' Compensation Disability Conference & Expo to discuss how Paradigm has continued to evolve its whole person, whole family approach to catastrophic care management and how that experience can be used to drive better outcomes overall.

Dave Seglins of the CBC reports amid 'Buy Canadian' fervour, Canada's top pension funds still heavily invested in U.S.:

For all the fear over the U.S. trade war and President Donald Trump's threats to Canadian sovereignty, this country's biggest pension funds remain heavily invested in the U.S.

The Canada Pension Plan (CPP), the largest pension fund in the country, announced this week that it has grown to a record $780.7 billion in assets, with 47 per cent invested in the U.S., compared to only 13 per cent in Canada. 

That level of U.S. ownership hasn’t budged in the year since Trump retook office, according to third-quarter results released on Friday.

The CPP’s U.S. assets have grown steadily since 2005, when Ottawa removed a cap on foreign holdings in Canadian pensions and RRSPs.

The CPP now has $366 billion invested in the U.S., compared with $98 billion in Canada.

A CBC analysis found the CPP is not alone among the "Maple Eight," the biggest pension funds in Canada, which collectively hold $1 trillion in U.S. assets. 

For example, 55 per cent of the portfolio held by OMERS (the Ontario Municipal Employees Retirement System) is American, as is 40.5 per cent held by the PSP (Public Sector Pension). 

Only three of the Maple Eight have more Canadian assets than American — the Healthcare of Ontario Pension Plan, the Ontario Teachers' Pension Plan and the Alberta Investment Management Corp.

When asked this week about its U.S. holdings, CPP spokesperson Michel Leduc acknowledged investors are increasingly concerned about geopolitical risks. But he emphasized that the CPP invests long-term.

“We are not easily whipsawed by current events or by any economic or even electoral cycles, even as we monitor turmoil very carefully to avoid excessive risks,” he said.

Leduc says CPP is in fact below the average for the size of its U.S. holdings when compared to leading measures of global investment diversification, such as the MSCI World Index and the Financial Times Stock Exchange 100.

“All of those global indices are 65 per cent U.S. content,” Leduc said. “So yes, I understand Canadians are wondering, 'Why so much in the U.S.? Why not more in Canada?'... 47 per cent is actually well below [the average].”

Calls for domestic investment

Daniel Brosseau, president of Letko Brosseau Global Investment Management in Montreal, said pension funds don't just sign people’s cheques to support them in retirement. They have many impacts on the economy.

“They are also investing in things, investing in plants, equipment and economic activity," he said. "They can influence people's wages in Canada, they can influence the wealth of Canadians in Canada through their investments.”

In 2024, Brosseau co-wrote a letter signed by 90 investment leaders calling on Ottawa to create new incentives for the Maple Eight to invest a greater share of their capital domestically.

“We have a lot of dry powder, about $3 trillion that can be invested in Canada,” said Brosseau.

Sen. Clément Gignac, an economist by profession, says concerns over uncertainty south of the border and new opportunities to invest here are prompting Canadian pension funds to rethink their U.S. holdings.

“The environment has changed a lot. It's still a liquid market but it's very unpredictable, the economic policies from the Trump administration,” Gignac said. “I think the risk/return has shifted regarding the U.S., and that's the reason that, in fact, I think that Canadian pension funds are currently re-evaluating their exposure to the U.S. market.”

Pensions, feds met on Bay Street

Managers of the Maple Eight funds met with Canada’s finance minister in Toronto in January to discuss new ventures for the $2.6 trillion in assets they have amassed, and to encourage more domestic investment.

“We have had a recent discussion with all of them to say … can we do more together, respecting that they are independent but at the same time looking at opportunities,” Finance Minister François-Philippe Champagne told CBC News. 

“We have created a meeting point every quarter that we're going to be sitting together … looking at the kind of projects that could lead them to invest more in Canada.”

But the government has made no moves to regulate or force pension funds to "Buy Canadian," which was the case prior to 2005, when Ottawa imposed foreign ownership limits on RRSPs and pension funds.

”There's tools in the toolbox, but I would say at this stage, I think that [the big pension funds] have realized themselves the interest of investing in Canada,” Champagne said. 

Keith Ambachtsheer of the International Center for Pension Management at the University of Toronto’s Rotman School of Management was among the people who fought to remove those foreign investment caps.

“I was part of a long campaign to say, ‘That's a really bad idea. We've got to get rid of this.’ Pension funds have to be able to diversify globally,” Ambachtsheer said.

He says he’s not surprised their U.S. holdings are large.

“If you put the global portfolio together and look at it, it’s got a big chunk of the U.S. in it, just because it's a big country with a big capital market,” he said. “The good news is when you measure it as to how we've actually done the last 10, 20 years, it's pretty good.”

As an example, CPP reported on Friday that it had averaged 8.4 per cent annualized returns over the last 10 years, despite recent “geopolitical tensions.”

Looking long-term

CBC requested comment from each of the Maple Eight pension funds. Several didn’t reply. 

Others stressed that their fund managers are watching developments in the U.S. closely and are seeking new ventures in Canada, given the mega-projects that have recently been announced by various governments. Ottawa earmarked $264 million to be allocated by its new Major Projects Office.

“We recognize that this is a pivotal time for Canada, and we see significant opportunities to advance transformative, nation-building projects," said Don Peat, spokesperson for OMERS, in an email. "We are engaged with all levels of government and other partners and are reviewing several opportunities at this time.”

CPP’s Michel Leduc said the fund is ultimately interested in low-risk investments that deliver predictable returns.

“We’re monitoring very closely the public policies that are being put in place at the federal and provincial levels to supply opportunities…. we're looking for assets that provide predictable, long-term sources of returns that are de-risked,” he said, citing things "like infrastructure, utilities, airports.”

“The fund is not managed according to any whims. We are acting on very clear objectives in the [Canada Pension Plan] Act, and not based on sudden, impulsive, unpredictable desires.”

Alright, I read this article over the weekend because Senator Clement Gignac who was once my boss at the National Bank posted it supporting the "Buy Canadian" narrative.

I replied to Clement:

I’ve discussed this issue in-depth on my blog. Canada’s large pension funds invest enough in Canada across public and private markets and are looking to invest more in Canadian infrastructure assets if the federal government creates winning conditions. Over the long run, US equities will outperform for a lot of reasons so their strategy there is smart. Sure, Canadian equities dominated by resources, financials and telcos can do well over a year or three but that’s not a secular trend. Ask yourselves why Norway’s giant wealth fund invests almost exclusively abroad, primarily in US equities and has done extraordinarily well over the long run. We need to trust our pension fund managers, they get paid big bucks to figure out how their funds can outperform over the long run. 

He responded:

Very good arguments mon ami. However, as former Strategist and Portfolio manager, I will refrain myself to mention that US equities (which represent now above 60% of Global MSCI capitalization) will automatically outperform their counterparts (or Canada in CDN dollar denominated) over the long-run! 

I remember similar conviction from Portfolio managers about Japanese equities in Mid 80’s when Japan country weighting exceeding 40% of MSCI (versus about 30% for US equities).

Given the ongoing unpredictable US trade policies, unsustainable fiscal situation not to mention very rich US equities valuation, nobody really knows about the future relative performance including our “very smart and talented” CPP Investments and other Canadian public Pension funds managers!

And once again, I ended this exchange with this response:

Nobody knows the future but the US 2026 isn’t Japan 1980, far from it. It remains the most liquid and diverse market in the world with the best tech exposure in world. Will it always outperform rest of world? No, 2025 was perfect example but over next 20 years, I feel comfortable with US exposure. Lastly, let’s not forget Canada has its own structural issues to address, the productivity gap being number one. As far as Trump, he’s becoming more predictable (and irrelevant) by the day, so I’m not worried about a full on trade war despite saber-rattling. 

I think there's a move to capitalize on tenuous US-Canada relations to push our large pension funds to invest more at home.

But our pension funds have been very clear with government officials, their governance is set in law, they operate independently and are overseen by an independent board and they have a fiduciary and legal duty to act in the best interests of their stakeholders and that's where their focus is.

Nonetheless, they're looking to invest in very specific Canadian infrastructure assets which will help them invest billions as they achieve their long-term return target without taking undue risk.

All this has been clearly discussed with government officials.

What they're not looking to do is invest more in Canadian equities and that has some people upset but these critics don't understand their mandate and mission and have ulterior reasons for wanting this.

When Daniel Brosseau, president of Letko Brosseau Global Investment Management in Montreal,says the following on pension funds:

“They are also investing in things, investing in plants, equipment and economic activity," he said. "They can influence people's wages in Canada, they can influence the wealth of Canadians in Canada through their investments.”

He's making a policy decision because he says pension funds are better off investing at home to increase Canadians' wealth through higher wages.

It sounds great but there are a few major flaws.

First, the number one job of all our large pension funds is to achieve returns to meet long-dated liabilities. They do this by diversifying globally, investing across public and private markets.

Second major flaw in Daniel Brosseau's thinking is that pension funds can be part of public policy and help the economy over the long run when we know the only thing that can achieve this over the long run is higher productivity growth.

What irks me is that over the last 10+ years, Trudeau's Liberals halted all resource projects, made it next to impossible for foreigners to invest in Canada and now to clean up the mess, we expect to use pension assets to "invest more in Canada" instead of getting to the real root of the problem, namely asinine regulations and public policies that have set our economy back decades.

I'm so tired of this "invest in Canada" nonsense, our pension funds already invest more than they really need to in Canada across public and private markets, they're not going to save the Canadian economy  over the long run and by imposing constraints to invest more in Canada, you risk jeopardizing their long term sustainability.

I'll say it over and over to Daniel Brosseau, Peter Letko, Clement Gignac and anyone else, leave our large pension funds alone, go after the politicians and force them to make drastic changes to public policy to spur more investment in Canada. 

Canada's large pension funds have one mandate (apart from the Caisse which has a dual mandate), it's to take intelligent risks all over the world to make sure there are more than enough assets to meet long-dated liabilities. 

That's it, that's all, if they can invest in Canadian infrastructure to help them realize their long-term objectives, fine, if not, forget about this call for action that our pension funds invest more in Canada.

Lastly, since we are talking about good public policy, the best way we can help the Canadian economy over the long run is to leave our pension funds alone to ensure Canadians retire well and spend more money into the economy when they reach retirement.

Below, Amanda Lang takes a ‘by the numbers’ look at the state of Canada’s infrastructure needed for housing – then talks it over with Peter Weltman, Vice-chair of the Canadian Infrastructure Council. Amanda then looks at innovation in how we finance our infrastructure needs with Ben Dachis, Vice-President of Outreach & Research at Clean Prosperity (December, 2025).

GE All-in-One Washer Dryer Manual: A Comprehensive Guide

This guide provides detailed instructions for GE combination washer dryer units, including model-specific manuals available on the official GE Appliances website.
Discover essential information regarding installation, operation, troubleshooting, and safety precautions for optimal performance and longevity of your appliance.

Understanding GE Combination Washer Dryer Models

GE combination washer dryers represent a space-saving solution, integrating washing and drying functionalities into a single unit. These appliances, like the GE Profile PFQ97HSPVDS 4.8 cu. ft. model, utilize ventless heat pump technology, eliminating the need for external venting – a significant advantage for apartments or spaces lacking traditional dryer ductwork.

Unlike separate washer and dryer sets, combo units typically have a smaller capacity for each cycle. Understanding this is crucial when selecting a model. GE offers various series, including the GFQ14, each with specific features and specifications. The all-in-one design streamlines laundry routines, but requires careful consideration of load sizes and cycle selections.

These models are designed for convenience, offering a range of wash and dry cycles to accommodate different fabric types and laundry needs. Proper usage, guided by the official GE Appliances manual downloadable from GE.com, ensures optimal performance and extends the appliance’s lifespan. Familiarizing yourself with the unique characteristics of these units is key to maximizing their benefits.

Locating Your Specific Model Number

Identifying your GE combination washer dryer’s model number is paramount for accessing the correct documentation and support resources. This unique identifier is essential when downloading the official GE Appliances manual from GE.com, ensuring you receive instructions tailored to your specific unit.

The model number is typically found on a label located in one of several places: inside the washer/dryer door, on the unit’s back panel, or on the appliance’s original packaging. It’s a combination of letters and numbers, such as PFQ97HSPVDS or GFQ14ESSNWW.

Having this number readily available streamlines troubleshooting, warranty claims, and contacting GE customer support. Without it, accessing accurate information becomes significantly more difficult. GE’s updated website directs users to standalone sites – GE Aerospace, GE Vernova, and GE HealthCare – but the appliance manuals remain accessible through the GE Appliances portal using your model number. Accurate identification is the first step towards effective appliance management.

Downloading the Official GE Appliances Manual

Accessing the official GE Appliances manual for your all-in-one washer dryer is straightforward and crucial for optimal use. Begin by visiting the official GE Appliances website – GE.com. Navigate to the support or owner’s manual section, typically found through a search bar or dedicated support link.

You will be prompted to enter your specific model number, which, as previously detailed, is located on the appliance itself or its original packaging. Inputting the correct model number ensures you download the manual specifically designed for your unit, including detailed instructions, safety information, and troubleshooting guides.

The manual is usually available as a downloadable PDF, allowing you to view it on any device; GE.com has been updated to reflect the company’s spin-offs (Aerospace, Vernova, Healthcare), but appliance manuals remain readily accessible. Downloading the manual empowers you to understand your appliance’s features and maintain its performance effectively.

Key Features of GE Profile PFQ97HSPVDS

The GE Profile PFQ97HSPVDS represents a premium all-in-one laundry solution, boasting a 4.8 cu. ft. capacity for handling substantial loads. Its defining characteristic is the integrated ventless heat pump technology, eliminating the need for external venting and offering installation flexibility. This innovative system efficiently dries clothes using a closed-loop process, conserving energy and reducing environmental impact.

This model features UltraFast Wash and Dry cycles, significantly reducing laundry completion times. SmartDispense technology automatically dispenses the correct amount of detergent for each load, optimizing cleaning performance and minimizing waste. The unit also incorporates steam functionality to refresh and sanitize garments, removing wrinkles and odors.

Furthermore, the PFQ97HSPVDS offers a range of customizable wash and dry cycles, catering to various fabric types and cleaning needs. Its sleek design and intuitive controls enhance the user experience, making laundry day more convenient and efficient. Detailed operation is available in the downloadable instruction manual.

GFQ14 Series: Overview and Specifications

The GE Combination GFQ14 series offers a compact and versatile laundry solution, ideal for smaller spaces. These 2.4 cu. ft. capacity units combine washing and condensing drying capabilities into a single appliance, eliminating the need for separate machines. Designed as front-load models, they prioritize space efficiency without compromising performance.

GFQ14 series washers feature multiple wash cycles, accommodating diverse fabric types and soil levels. The integrated condenser dryer utilizes ventless technology, simplifying installation as no external exhaust is required. This makes them suitable for apartments, condos, or areas lacking traditional venting options.

Key specifications include a standard 120V power supply and various control options for customized washing and drying. Access to the complete owner’s manual and installation instructions is readily available online through the GE Appliances website, ensuring users can maximize the appliance’s functionality and maintain optimal operation. Detailed support information is also provided.

Ventless Heat Pump Technology Explained

GE Profile PFQ97HSPVDS utilizes advanced ventless heat pump technology, representing a significant departure from traditional condenser dryers. Unlike vented or conventional condenser dryers, this system recirculates air within a closed loop, efficiently removing moisture without requiring an external exhaust vent.

The heat pump works by heating the air, passing it over the wet clothes to absorb moisture, and then cooling the air to condense the water. This process is remarkably energy-efficient, consuming significantly less electricity compared to conventional drying methods. The condensed water is collected in a reservoir for easy disposal;

This ventless design offers installation flexibility, eliminating the need for ductwork and allowing placement in various locations. Furthermore, the lower operating temperatures are gentler on fabrics, reducing the risk of shrinkage and damage. This innovative technology delivers powerful drying performance while prioritizing energy savings and fabric care.

Installation Instructions: General Guidelines

Prior to installation, carefully inspect the GE combination washer dryer for any shipping damage. Ensure you have the necessary tools, including a level, screwdriver, and potentially pliers, readily available. The unit requires a dedicated 120V electrical outlet; avoid using extension cords.

Position the appliance on a firm, level surface capable of supporting its weight, even when fully loaded. Adjust the leveling feet to eliminate any wobble. Water connections should be made according to local plumbing codes, utilizing new supply hoses. Because this is a ventless model, no external venting is required, offering installation flexibility.

Refer to the specific model’s owner’s manual – downloadable from the GE Appliances website using your model number – for detailed diagrams and step-by-step instructions. Proper installation is crucial for optimal performance and to prevent potential issues. Always follow safety precautions during the installation process.

Washer Cycle Options and Settings

GE combination units offer a variety of washer cycles to accommodate different fabric types and soil levels. Common cycles include Normal, Delicates, Heavy Duty, Quick Wash, and Bulky/Bedding. Temperature settings range from Hot, Warm, to Cold, allowing for customized washing.

Spin speed is also adjustable, with options for High, Medium, and Low, impacting water extraction and drying time. Utilize the “Sanitize” option for enhanced cleaning and disinfection, ideal for heavily soiled items or allergy sufferers. The “Steam” function can pre-treat stains and refresh garments.

For optimal results, consult your model’s manual for recommended cycle settings based on fabric care labels. Load size adjustments are crucial; avoid overloading to ensure thorough cleaning. Explore features like delayed start for convenient operation and automatic detergent dispensing (if equipped). Proper cycle selection maximizes cleaning efficiency and fabric protection;

Dryer Cycle Options and Settings

GE all-in-one units provide diverse dryer cycles tailored to various needs. Options typically include Normal, Delicates, Heavy Duty, Timed Dry, and Air Fluff. Temperature settings range from High, Medium, to Low, ensuring appropriate heat for different fabrics. Ventless heat pump technology offers energy efficiency and gentle drying.

Utilize the “Steam Refresh” cycle to reduce wrinkles and odors without full washing. The “Sanitize” cycle employs higher temperatures for enhanced disinfection. Moisture sensor technology automatically detects dryness levels, preventing over-drying and saving energy. Adjust the dryness level to your preference – More Dry, Medium Dry, or Less Dry.

Refer to your specific model’s manual for detailed cycle descriptions and recommended settings. Proper cycle selection protects fabrics and optimizes drying performance. Regularly clean the lint filter to maintain efficiency and prevent fire hazards. Explore features like wrinkle shield to minimize creasing.

Troubleshooting Common Issues

Encountering problems with your GE all-in-one washer dryer? Common issues include error codes, failure to start, insufficient drying, or excessive noise. First, verify the power supply and water connections. Check for overloaded drums or improper load balancing, which can cause vibrations.

If the unit doesn’t start, consult the error code section of your manual for specific diagnoses. Insufficient drying often stems from a clogged lint filter – clean it after each cycle. For drainage issues, inspect the drain hose for kinks or obstructions. Unusual noises may indicate foreign objects within the drum.

Before contacting support, attempt a power reset by unplugging the unit for several minutes. Refer to the manual for detailed troubleshooting steps related to specific error codes. Always prioritize safety; never attempt repairs while the unit is connected to power.

Error Codes and Their Meanings

GE all-in-one washer dryers utilize error codes to signal malfunctions, aiding in efficient troubleshooting. These codes, displayed on the unit’s control panel, pinpoint the source of the problem, ranging from water supply issues to internal component failures. A “WD” code often indicates a water drainage problem, potentially caused by a blocked drain hose.

“LE” signals an imbalance during the spin cycle, requiring load redistribution. “OE” typically denotes an overflow error, suggesting a water inlet valve malfunction. Other codes may relate to heating element failures, motor issues, or sensor errors. Your specific model’s manual provides a comprehensive list of error codes and their corresponding solutions.

Always consult the manual before attempting any repairs. Ignoring error codes can lead to further damage. Document the error code before contacting customer support for faster assistance. Understanding these codes empowers you to resolve minor issues independently and communicate effectively with service technicians.

Cleaning and Maintenance Procedures

Regular cleaning is crucial for maintaining your GE all-in-one washer dryer’s performance and longevity. After each use, wipe down the door gasket to prevent mildew growth. Monthly, run a cleaning cycle with a washer cleaner to remove detergent buildup and odors. The lint filter, located within the dryer compartment, requires cleaning after every drying cycle to ensure efficient airflow.

Periodically inspect the drain pump filter for obstructions like coins or debris. Clean the exterior surfaces with a damp cloth and mild detergent. Avoid abrasive cleaners that could damage the finish. For ventless models, ensure the condenser unit is free of dust and lint, following the manual’s specific instructions.

Proper maintenance extends the appliance’s lifespan and prevents costly repairs. Refer to your model’s manual for detailed cleaning schedules and recommended products. Ignoring these procedures can lead to reduced efficiency and potential malfunctions.

Safety Precautions and Warnings

Prioritize safety when operating your GE all-in-one washer dryer. Always disconnect the appliance from the power supply before performing any maintenance or cleaning. Never attempt to repair the unit yourself; contact a qualified technician for assistance. Ensure proper ventilation to prevent moisture buildup and potential mold growth.

Do not overload the washer or dryer, as this can cause damage and affect performance. Keep flammable materials away from the appliance. Supervise children when they are near the unit. Avoid using extension cords, and ensure the appliance is properly grounded.

Read and understand all warnings and instructions in the user manual before use. Improper installation or operation can create hazards. If you detect any unusual noises, smells, or malfunctions, immediately stop using the appliance and consult the troubleshooting section of the manual or contact GE support.

GE Company Spin-Off Information (Aerospace, Vernova, Healthcare)

Recent corporate restructuring at GE has resulted in the separation into three independent, publicly traded companies: GE Aerospace, GE Vernova, and GE HealthCare. This strategic move impacts the overall GE brand landscape, but does not directly alter the functionality or support for GE Appliances, including your all-in-one washer dryer.

While GE as a unified entity no longer exists, GE Appliances remains committed to providing comprehensive support for its products. Access to manuals, parts, and customer service remains readily available through the official GE Appliances website. The spin-offs primarily affect the aerospace, energy, and healthcare sectors.

GE.com now directs users to the individual company websites: GE Aerospace, GE Vernova, and GE HealthCare. This change ensures focused information and resources for each business. Your GE appliance warranty and service are unaffected by these corporate changes.

GE’s History and Future Outlook

General Electric’s legacy spans over a century of innovation, beginning with Thomas Edison’s pioneering work in electric lighting. Throughout its history, GE has consistently pushed technological boundaries, impacting numerous industries, including appliance manufacturing. This commitment to innovation continues to shape GE Appliances’ product development, including the advanced features found in all-in-one washer dryers.

The recent spin-offs – GE Aerospace, GE Vernova, and GE HealthCare – represent a strategic refocusing of the company. While the broader GE structure has evolved, GE Appliances operates as a distinct entity, dedicated to delivering high-quality home appliances.

Looking ahead, GE Appliances will continue to leverage its rich history of innovation to develop cutting-edge laundry solutions. Expect ongoing advancements in efficiency, smart technology, and user experience, ensuring GE remains a leader in the appliance market. The future focuses on empowering consumers with reliable and innovative products.

Resources for Support and Contact Information

For immediate assistance with your GE all-in-one washer dryer, the official GE Appliances website (GE.com) is your primary resource. Here, you can download user manuals specific to your model number – crucial for understanding features and troubleshooting. A comprehensive FAQ section addresses common concerns, offering quick solutions.

If you require direct support, GE Appliances provides multiple contact options. Their customer service team is available via phone, offering personalized assistance. Online chat support provides real-time help, and a dedicated support portal allows you to submit inquiries and track their progress.

Furthermore, GE’s updated website now directs users to the standalone sites for GE Aerospace, GE Vernova, and GE HealthCare. However, appliance support remains centralized on GE Appliances’ platform. Utilize these resources to ensure optimal performance and resolve any issues efficiently.

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Innes Ferré of Yahoo Finance reports on 'the dark side of AI', Wall Street weighs recent stock sell-off over disruption fears:

The stock market just got a look at how disruptive investor concerns over AI could become across multiple industries.

What began as a shake-up in software stocks spread to the wealth management, transportation, and logistics industries last week, raising questions about just how deeply AI could transform not only tech but also high-fee service businesses.

The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) both ended the week down more than 1% as Financial Services (XLF), Consumer Discretionary (XLY), and tech stocks sold off on AI concerns. The Dow Jones Industrial Average (^DJI) was down 1.2% for the week, while the Nasdaq Composite (^IXIC) dropped 2% and the S&P 500 (^GSPC) slipped 1.4%

"That's the dark side of AI," Innovator Capital Management chief investment strategist Tim Urbanowicz told Yahoo Finance. "We need to pay attention to that because I do think there's going to be other industries that are disrupted, and this is certainly a threat."

Shares of C.H. Robinson (CHRW) and Universal Logistics (ULH) closed out the week with losses of 11% and 9%, respectively, after a Florida-based company announced a new tool that would scale freight volumes without increasing headcount.

The sell-off echoed a drop in wealth management stocks like Charles Schwab (SCHW) and Raymond James (RJF), which fell 10% and 8%, respectively, for the week, after the launch of an AI-driven tax tool that allows advisers to customize strategies for clients. The tool raised fears that automation could put pressure on the industry's high advisory fees.

The "AI scare trade" has now spread across multiple industries, with software stocks getting hammered in recent weeks amid fears that AI will take over tasks traditionally handled by enterprise giants like Salesforce (CRM) and ServiceNow (NOW) and disrupt their revenue models.

The Tech-Software Sector ETF (IGV), which also includes heavyweights like Microsoft (MSFT) and Palantir (PLTR), is down 22% year to date.

Many on Wall Street consider the sell-off overdone.

"I don't necessarily think the bottom is in here," Urbanowicz said. "Margins are through the roof in this category of stocks. Those haven't come down yet, and valuations still are pretty elevated."

That said, Urbanowicz still sees a "very supportive backdrop" for stocks, forecasting the S&P 500 at 7,600 by the end of the year.

Part of that has to do with a supportive regulatory backdrop from the Trump administration, corporate tax incentives from the Big Beautiful Bill Act, and leadership in other sectors, like Energy (XLE), Consumer Staples (XLP), and Materials (XLB), which are all up double-digit percentages year to date, compared to Technology (XLK), down 2.5% during the same period.

Amanda Agati, chief investment officer of PNC Asset Management Group, recommends looking past the volatility and focusing on the broader theme.

"I think this is a short-term blip, and the fact that we're seeing pretty significant market breadth outside of these one-off names ... really gives me confidence that the rally is sustainable even though it's going to be a choppy year," Agati told Yahoo Finance.

UBS strategists recently said investors should look beyond tech as a way to navigate potential risks and fully capture the upside AI could bring across industries.

"We also believe companies that actively use AI to enhance operations and evolve their business models should benefit, especially those in the financials and health care sectors," Ulrike Hoffmann-Burchardi, CIO Americas and global head of equities at UBS Global Wealth Management, said in a recent note.

John Towfil of CNN also reports on why the 'AI scare trade' might not be done:

A sell-off rippled through software, real estate and trucking stocks this past week as investors worried artificial intelligence could upend some industries — and analysts say the white-knuckle drops might not be over yet.

Software stocks bore the initial brunt of AI disruption nerves. But those fears soon spread to insurance companies, brokerage firms, real estate services — even logistics and trucking.

“Market is in shoot first, ask questions later mode, with any names/sectors that could be impacted by AI disruption taking a hit,” Mohit Kumar, a strategist at Jefferies, said in a note.

The slump in shares points out a major change for investors going forward: AI, which had been powering big rallies in tech and other stocks for months, could now actually drag on some parts of the market.

Financial services

Shares of major insurance brokers fell on February 9 after Madrid-based startup Tuio unveiled a new insurance app built with ChatGPT, according to UBS.

That sparked fears that AI tools could eat into existing companies’ business models and customer bases. Shares of professional services and insurance companies sank. Marsh shares (MRSH) tumbled 7.5%. Arthur J. Gallagher shares (AJG) dropped 9.85%.

But Brian Meredith, an analyst at UBS, said in a note that he thinks the sell-off was “meaningfully overdone,” noting that insurance brokers remain “essential intermediaries” for household financial decisions, and it is unlikely AI will ultimately upend the industry.

On Tuesday, tech startup Altruist announced a new tax planning feature for Hazel, the company’s AI tool. That stoked fears that the specialized client services offered by brokerage and wealth management firms could face increased competition.

Charles Schwab (SCHW) shares dropped 7.42% Tuesday. Shares of financial services company LPL Financial (LPLA) and Raymond James (RJF) slumped 8.75% and 8.31%, respectively.

Real estate

Real estate services found themselves in the barrel on Wednesday and Thursday.

Cushman & Wakefield shares (CWK) tumbled 13.8% Wednesday and 11.5% Thursday. Shares of real estate service companies CBRE Group (CBRE) dropped 12.2% and 8.8% across the two days. Jones Lang LaSalle (JLL) fell 12.5% and 7.6%. 

“We believe investors are scrutinizing high-fee, labor-intensive business models viewed as potentially vulnerable to AI-driven disruption,” Jade Rahmani, an analyst at Keefe, Bruette & Woods, said in a note.

And AI has the potential not just to compete with traditional real estate brokerages and agents, but to slash demand for office space in general, as AI executives predict their technology will eliminate swaths of the economy.

“If there are less office workers in the long run as a result of AI, there will be less demand for office space,” CBRE Group chief executive Bob Sulentic said on the company’s earnings call on Thursday morning. “That would be a long-term trend to unfold.” 

Logistics

The Dow Jones Transportation Average — an index of 20 companies in the transportation industry — sank 4% Thursday and had its worst day since April. 

The culprit was Algorhythm Holdings, which announced a new tool that could improve efficiency and better optimize the trucking business.

The reaction was swift: Shares of RXO (RXO), a freight company, plummeted 20.45% on Thursday. Shares of logistics company C.H. Robinson Worldwide (CHRW) dropped 14.54%.

“While perceptions of artificial intelligence are influencing recent market activity, C.H. Robinson has been a leader in AI for more than a decade and we believe AI will only continue to strengthen our performance and widen our competitive moat,” C.H. Robinson said in a statement.

Algorhym’s announcement was all the more surprising considering the company once specialized in selling karaoke machines before pivoting to become an AI and logistics company. 

“It’s perhaps indicative of the state of markets at the moment that a $6 million market cap company that until recently specialized in karaoke helped wipe tens of billions off logistics stocks to add to the weakness,” Jim Reid, global head of macro research at Deutsche Bank, said in a note.

Algorhythm shares (RIME) rose almost 30% last week.

Where do stocks go from here?

Angelo Kourkafas, senior global strategist at Edward Jones, told CNN that “fear of AI disruption” has been a dominant theme in markets over the past two weeks. But the ripples permeating the stock market right now are themselves based on hypothetical scenarios, he said.

Kourkafas said the fears are more “speculative in nature” rather than based on immediate, fundamental changes to companies’ revenue streams. 

“Yes, in the near term there could be fears of disruption across many different industries, but we know these companies are actively investigating ways to evolve and offer better platforms, products and services as a result of that,” Kourkafas said.

But Jonathan Krinsky, chief market technician at BTIG, said in a Thursday note that single-stock moves based on AI nerves are “getting more and more extreme.”

“At a certain point … we begin getting concerned that the weakness supersedes the strength and the broad market becomes vulnerable,” Krinsky wrote. 

And Crystal Kim of Investopedia reports investors are dealing with AI fears by 'shoting first, asking questions later':

• Companies in the financial sector were the latest casualty of perceived AI-disruption fears.
• While some fears may appear overblown, it doesn't help that AI impact has become more measurable recently, making those concerns easier to quantify.

This week it was financials. Last week it was software and legal services. Perhaps next week something else will be crushed by fears of AI disruption.

Investors appear to have pivoted from worrying about AI getting over its skis in valuation terms, to fretting about what it could displace—and selling it.

Between Anthropic's unveiling of an AI model the company said would be better at tasks including financial analysis, research, and work involving spreadsheets, and with tech platform Altruist launching an AI-powered tax planning tool, investors have panned shares of financial companies like Charles Schwab (SCHW) and LPL Financial (LPLA) this week. The SPDR S&P Software & Services (XSW) and Financial Select Sector SPDR (XLF) ETFs are down 19% and 3%, year-to-date, respectively, while the benchmark index is in the green.

AI-related disruption, real or perceived, would appear to be entrenched in market vibes. That may, in part, be driven by the impact of the technology becoming more quantifiable. And it could be a source of indiscriminate selling going forward, with equity strategists saying "disruption-related volatility" is likely to be "recurring." 

In a broader swath of companies tracked by Morgan Stanley, 30% cited at least one measurable impact of AI adoption in the fourth quarter of last year, the firm's equity analysts wrote Wednesday.  That's up from 16% over the same period in 2024. That said, the perception of disruption has "unfairly" dinged companies, including those in the software and services sectors, the analysts said.

The firm listed a set of stocks that have been subsequently "mispriced"—including Microsoft (MSFT), Intuit (INTU), and Palo Alto Networks (PANW) as well as Sony Group (SONY), Tencent Holdings, and Spotify (SPOT). 

Analysts across various firms are picking through their respective coverage universes to find stocks that deserve to be rescued because even valid concerns may have landed too early and too roughly.

"While difficult to disprove the bear narrative in software given fears are more about genAI implications for the industry in the out years, we contend that any meaningful disruption will likely play out over a much longer timeline than investors anticipate," Deutsche Bank's Brad Zelnick said in a Wednesday note.

Meanwhile, Ed Yardeni of Yardeni Research, reaffirmed his "overweight" recommendation, effectively a bullish posture, for financial stocks, characterizing the recent decline in the sector as a "sell first, ask questions later" reaction.

Alright, Monday February 16th, President's Day in the US, Family Day in Ontario, British Columbia, Alberta, Saskatchewan and New Brunswick.

Most people are off today so it's a good time to tackle this "AI disruption fear" mania gripping investors and traders alike.  

I can sum it up like this: "The 'AI tsunami' has arrived, it will rip apart many industries, not just software, it will decimate everything in its path, capitalism as we know it is ending, be prepared for massive structural changes the likes of which you've never seen before, yada yada yada"

Complete and utter horsesh*t if you ask me but proponents of the AI disruption trade are pounding the table and truth is the market is definitely in a "shoot first, ask questions later" mode.

Well folks, the market isn't always right, it wasn't right heading into the GFC, it wasn't right about the pandemic destroying the world and in my humble opinion, it's not right about Saas-Pocalypse.

But Wall Street always needs a story, brokers gang up to hit stocks so they can turn around to sell them on the cheap to their long list of elite hedge fund clients and by the time the tide turns and everyone breathes a collective sigh of relief, it's over, the elite hedgies made off like bandits and everyone else is still too scared to jump back into the market.

Now, I can't state for sure the software selloff on Wall Street is overdone but it sure feels like that to me:

Below, look at the list of the worst-performing US large cap stocks year-to-date (full list here): 

It's mostly the sheer annihilation of software shares and the baby is being thrown out with the bathwater.

Next, check out the 5-year weekly chart of the iShares Expanded Tech-Software Sector ETF (IGV):

 And really dig deep into the top ten holdings of this ETF which make up 60% of the assets:

Also keep in mind many names like Snowflake and others I covered above don't appear on this list of the top ten:

I can go on and on but you get the picture, total destruction, multi-year lows, software is dead, long live hardware in the AI renaissance era.

Now, to be clear, the trader in me says stay away from this sector until things stabilize but I nibbled on IGV because I truly believe people are losing their marbles over this AI disruption trade and fears of a Saas-Pocaplyspe are way overblown.

I know, the speed at which AI is transforming the world is unparalleled and I have no idea of what is coming next.

No, I don't and neither do people who claim AI is taking over the world and hyperscalers are toast.

When I ask all my doctor friends if AI is taking over medicine like Elon Musk is warning of, they all tell me: "I wish he was right but it's the opposite, we have more work than ever, it's depressing."

Last night I wasted an hour going to put gas in my wife's car and waiting patiently to wash the exterior.

A whole goddamn hour which I used productively to watch Jordi Visser's latest weekly clip on how the Supersonic Tsunami Hits SaaS (embedded below).

Good clip, don't agree with a lot of his insights/ recommendations, think he's more interested in being right than making money but I always listen to his insights even if I don't agree with him (there is a lot of good stuff here worth noting).

Then I had a eureka moment: "If AI is taking over the world, where are the robots that fly to my house to put gas in the car and wash its exterior? Where are the robots taking over plumbers, electricians, landscapers and greedy contractors?"

Goddammit, AI isn't moving fast enough in areas that count!! -:) 

I'm being facetious, of course, I know AI is moving fast and will change the way we live, hopefully for the better, but there's SO MUCH AI BS out there that I just had to wrote this comment and tell people to cool down and don't be swept into the AI hysteria.

Are hyperscalers spending a ton of money to be AI leaders? Are they incurring massive debt? You bet and it will impact their buyback power but maybe they know something others don't and when this AI revolution begins and they start monetizing on it in a massive way, maybe they will be proven right.

Are there going to be winners and losers in AI? Absolutely, there always are winners and losers after every technological disruption. Jordi Visser brought up Joseph Schumpeter's "creative destruction" and it's happening as we speak.  

Still, this isn't gong to happen in a year, it will take ten years before we figure out how this AI disruption plays itself out. 

Again, do not get swept up by the AI hysteria, listen carefully to all views but always ask yourself "are they talking up their book or do they really know what's going on?"

On that note, watch the clips I embedded below and enjoy the rest of your Monday, I will cover top funds' Q1 activity on Friday as rest of week is reserved to pensions.

First, in this week's video, Jordi Visser breaks down why he thinks we are now in the midst of what Elon Musk called the "supersonic tsunami", and why the acceleration phase of AI is rewriting market structure in real time. "Over the past week, the disruption spread beyond SaaS into insurance brokers, wealth management platforms, commercial real estate services, and trucking stocks. 115 S&P 500 names fell at least 7% over a rolling 8-day window, many near 52-week highs, a dispersion pattern we haven't seen since the dot-com rotation in 2000."

Next, $285 billion in market capitalization. Vanished in a week. Capgemini -9%. Publicis -9.2%. Teleperformance -5.8%. And it's not a general crash, it's surgical. A single company triggered the movement. Anthropic has just launched a two-pronged offensive that changes the rules of the game: Cowork (an autonomous agent that works within your existing systems) and Opus 4.6 (the smartest model on the market). SaaS, IT services companies, consulting firms: all in the crosshairs (Feb 7th).

Third, Chamath Palihapitiya, Jason Calacanis, David Sacks and David Friedberg jon the All-In podcast to discuss AI trends and whether thisis a debt spiral or new golden age.

Fourth, Dan Ives of Wedbush Securities says the recent software selloff is overblown. He says major players like Microsoft, Google, and Oracle will benefit from the ongoing AI infrastructure buildout and he sees many buying opportunities.

Fifth, Jonathan Golub of Seaport Research Partners says the tech basket of stocks is "incredibly attractive."

Lastly, Morgan Stanley Investment Management Portfolio Solutions CIO Jim Caron says the chance of the recent selloff in software-related stocks to create contagion is relatively low and it's a great time to be a stock picker instead of a passive investor.