Market Update January 2024

As we step into 2024, we reflect on a year marked by the resilience of the U.S. economy and stock markets, while maintaining a cautiously optimistic outlook in Canada. The economic landscape has shifted from fears of a deep recession to discussions of a softer landing.

Inflation is anticipated to realign with the Federal Reserve's target by April, potentially leading to rate cuts in the U.S. later in the year, and perhaps even earlier in Canada. However, with historical patterns and certain indicators still pointing towards a potential recession, 2024 is a year for vigilance, not complacency.

Portfolio Strategy Update:

In line with these developments, we're tactically adjusting our strategy. We're putting cash to work by investing more in bonds and, to a lesser extent, increasing our exposure to stocks. These steps are taken to effectively manage risks associated with our portfolio positions, and harness potential buying and income opportunities.

Balancing Opportunities and Risks:

While these market shifts present opportunities, they also come with inherent risks. Our priority is to ensure your portfolio remains resilient and responsive to these changes. We continue to prioritize your objectives and adhere to our core investment principles, focusing on robust, income-generating investments ideal for those seeking either retirement income or growth.

Our Investment Philosophy:

On the fixed income side, our focus remains on simplicity and stability, with trusted choices like GICs, cash, and bonds managed by reputable external entities. This strategy provides a strong, balanced foundation for your investments.

In shaping your equity portfolio, we carefully select investments, including standout Canadian stocks that you can track in the news, and that align with both market opportunity and your personal investment preferences while staying firmly rooted in our unwavering commitment to our core principles: preserving capital, effectively managing risk, and generating income.

Comprehensive Portfolio Management:

Our portfolio creation process is underpinned by thorough research, leveraging our almost three decades of experience. We meticulously assess stability over at least a 5-year horizon, scrutinize performance history, investment tenure, fees, and consistency in style and income generation. Building strong partnerships and maintaining a solid institutional reputation are integral to our philosophy.

Looking Ahead:

As 2024 unfolds, our commitment is to navigate these uncertain times with a strategy rooted in experience, transparency, and a dedication to aligning your portfolio with your evolving financial goals.

Thank you for entrusting us with your financial journey. We look forward to continuing to serve your investment needs with diligence and foresight.