October continued with warm temperatures and fairly good markets that seemed to be in a range awaiting earnings and the outcome of a U.S. presidential election. October is usually a scary month, but this year was a nice relief with it being a little dull however this could change at any moment.

     The U.S. election will be over by the time you receive this, and I do feel regardless of who wins; the markets may sell on the news. We are at all time highs, and everything looks great going forward and multiples are not cheap. These are all ingredients for an excuse to have some sort of pullback. I am not predicting the end of the current bull market just a little pullback and we have been preparing for this should it occur.

     Earnings will continue streaming in at from late October into November and for the most part they have not been bad. When we get the ‘Mag 7’ companies reporting this could potentially cause some volatility as they carry a huge presence in our indices.

     The Bank of Canada followed the Federal Reserve and lowered interest rates this month as the economy and inflation have declined to acceptable
levels. In Canada we have also been hit with falling oil prices due to less risk of increased Middle East tensions. I do feel as China works its stimulus package this will help oil and these stocks remain overlooked and very inexpensive.
     Overall if we did get a pullback, it is a buying opportunity. The economy in the U.S. is not bad and you have a combination of positive backdrops. The Fed is on an easing pattern, and the majority of corporate earnings as well as outlooks are favorable. I do believe the market should be bought on pullbacks.
     The artificial intelligence build out will continue as this is not a short-term event and along with this comes the need for more power. The need for cybersecurity remains large and we are investing accordingly. It will be nice to get this election out of the way so we can take advantage of opportunities accordingly.