North American stock markets continued their upward trend in February. We finally started to see the rally move into other areas rather than the seven stocks that have been receiving all the attention.

I do feel the excitement around the Federal Reserve poised to lower rates sooner is fading and I do not expect any rate decreases until the late summer which could be stretched further if the economy stays strong. However, we do have a U.S. presidential election in the fall, and this could cause a reduction in rates at that time.

Earnings have been coming out quite nicely and the excitement over artificial intelligence (AI) continues to bolster certain areas. AI will be a topic for a while as companies look to incorporate this and what it can actually do for these companies still remains an uncertainty.

Conversations still point to a soft landing in the U.S. economy and currently it appears this could be the case as earnings remain strong and outlooks remain positive despite the amount of rate increases, we have experienced.

Canada has been a laggard to all the good news as our country has very limited exposure to technology and healthcare. We have seen some good earnings from the oil and gas sector and decent earnings from the financials, but nothing compared to the good news items in the U.S. Utility stocks have been the most punished in market prices as growth is limited and debt is higher. We own utilities through the good and the bad as they are regulated and continue to pay out great income streams however, they are unloved in high growth conditions, and this will change as time goes by.

I continue to like the oil and gas areas as the balance sheets continue to strengthen. We continue to look to expand our foreign investments as I continue to see better opportunity south of our border. March is usually a time when markets take a breather, and we are set up to add to good positions should we get an opportunity.