December 2025
As we approach the holidays, we want to take a moment to reflect on the past year in the market and discuss our outlook for the months ahead. This year brought a mix of strong performance for North American markets, amid ongoing economic shifts and policy uncertainty. The Fourth quarter begins with a reminder of potential challenges, but our focus remains on strategic, long-term growth.
The year of 2025 was marked by a robust performance driven by factors like AI enthusiasm and expectations of American interest rate cuts.
Technology-driven gains: Technology gains around artificial intelligence helped fuel a surge in equities with strong growth recorded in the last couple of quarters.
Central bank actions: In Canada and the US we have experienced a balance price stability with modest growth. We anticipate interest rate cuts continue into 2026.
Geopolitical and trade tensions: Regional disparities and trade policies added volatility to global markets throughout the year. New tariffs announced earlier in the year caused uncertainty, impacting corporate investment plans, though the US economy has remained largely stable.
Shifting economic landscape: Some regions faced more significant challenges, such as Canada and Europe. However domestic-facing sectors have shown resilience.
The markets recent strong run, while encouraging, may face some headwinds. Our approach in the coming months will remain one of cautious optimism, emphasizing quality and diversification. With ongoing global geopolitical tensions and potential policy shifts heightened market volatility should be expected. Historically markets experience three 5-8% pullbacks a year. These bouts of volatility are normal expectations of stock investing and are key to healthy functioning markets.
Upcoming fiscal tax cuts in the US will become topical shortly and help provide some stimulus to the consumer. Interest rate stabilization has also provided good returns and defensive positioning against economic unknowns. As we navigate this “old normal” environment, our strategy will continue to focus on disciplined, long-term investing. By staying informed and focusing on quality we can position ourselves to capture opportunities while managing risk.
Wishing you and your family a safe and happy holiday season.
Sincerely
Lonnie Schick & Dave Sim