Should you sell your AI stocks right now?

Veritas Asset Management portfolio manager Sam Labell says rising uncertainty in the U.S. economy, exacerbated by a government shutdown that has delayed key data releases, is feeding skepticism across the technology sector and weighing on some of the market’s highest-valuation names.

Appearing on BNN Bloomberg’s Market Call on Nov. 17, he said the tech-heavy Nasdaq 100, which remains up about 22% over the past year, is showing signs of fatigue as investors reassess stretched valuations without reliable economic indicators.

Labell said the absence of retail sales, GDP and other core data has made it difficult to determine whether recent weakness is a conventional slowdown or the direct after-effect of the shutdown.

Many economists expect the disruption to shave one to two percentage points from annualized fourth-quarter GDP. That slowdown has implications for inflows into equities, he added, noting that reduced paycheques for federal workers and contractors temporarily curtailed retirement contributions.

“When we think about these tech valuations, I believe they require new blood all the time,” he said. “If fundamentally there’s no cash moving into the markets… it’s really hard to sustain things that are mostly based on hopes and dreams about where we’ll be in ten years in the tech world.”

He expects weakness across the AI complex in the fourth quarter and said upcoming U.S. retail earnings, including Walmart, Target, Home Depot, Lowe’s and TJX, will provide the first meaningful read on shutdown-related pressures.

“The uncertainty really isn’t good for markets,” he said. “Here you might be dialing back risk just on the lack of data and the lack of confidence in what might happen in the next couple of months.”

Labell said he remains cautious on Brookfield Asset Management and Brookfield Corp., despite their long-term results, citing premium valuations vulnerable to compression, especially as U.S. peers have already repriced.

Brookfield Infrastructure Partners however, up 3.3% over the past year, is one of his preferred picks.

“You’re getting double-digit FFO growth,” he said, noting disciplined capital recycling and growing exposure to major utilities buildouts. “It’s a good yielding play.”

He also highlighted Bombardier, whose shares have surged 138% over one year, 356% over three years and more than 1,500% over five years. He said the company is increasingly viewed as a potential beneficiary of future defence procurement decisions, while its fundamentals remain strong.

“Their order backlog is very strong and they’re growing in the aftermarket business,” he said. “There’s still some room for the multiple to expand.”

Labell also sees value in Canadian Pacific Kansas City (CPKC Stock Quote, Chart, News, Analysts, Financials TSX:CP), down about 5% over the past year amid tariff-related concerns. He expects low double-digit EPS growth in 2026 and said its valuation has fallen back toward peers.

“We think the real economy will likely hold up,” he said.

Lower interest rates and improved long-term mortgage affordability in the U.S. could revive homebuilding and related freight volumes, he added, benefiting rail carriers like CPKC.

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