March has been a month of volatility. The headlines and the media have made it out more like turmoil, but I would classify it a little lighter. The U.S. market is down around 10% from the highs which is a normal correction and Canada is off not quite as much. The news headlines continue to make it appear a lot worse.  We remain in the dark regarding facts which creates a lot of uncertainties and hence this volatility. By the time you receive this newsletter we will have a lot more clarity and this will be good for decision making going forward.

In Canada we are in the middle of a federal election and again we have uncertainty around who wins and what policies and tax implications are coming. This leaves us again in a state of uncertainty and will cause us more volatility in the short term this month. Add the U.S. tariffs to this picture and it will be a challenging month. Does this mean we should sell?  Absolutely not. This is a time to be patient and pick off deals. Knowing what you own is key as it is these times when companies get mis-priced to the downside.

Europe and Asian markets have been doing fairly well in this uncertainty as money moves to cheap areas. These areas have been cheap for a long time and overdue for some strength.

Going forward I expect April to be a challenge as we go through the above issues, but we should look forward. Especially true in the U.S. with the potential reductions to taxes and regulations which are both business positive. We still also have the continued build out of data centers and the huge demand for power.

Although none of us like this volatility, it is a necessary cleanse for the markets.  This creates very good opportunities as there are a lot of companies who have been passed over for years as the magnificent seven have taken in all the investment dollars. There is a lot of year left and we will use the current uncertainty to our advantage.