April has proven to be a little choppy, and we’ve seen more of a pause happening in the good move we saw in the first quarter. Inflation has proven to be a challenge, and this has readjusted expectations of any interest rate cuts happening soon – instead, they’re expected to be extended out further. (I have always been in the camp thinking rate cuts will come, but not for a bit yet).

Earnings have been coming in very nicely and the reporting company’s outlook going forward is still positive. We continue to see employment remain strong, which leads us to feel the economy is still in good shape and a potential recession is not close at this time.

Conflicts in Ukraine and the Middle East remain a concern, and we still have China struggling along with their economy. These are just a few of the items requiring attention as these, too, could derail the current situation.

The instant reaction to Artificial Intelligence (AI) and the big wave of investing in a few AI companies seems to be reaching a high point. I like AI going forward, and we are positioning for the extra power (hydro) that is going to be required, as well as the extra copper that will be needed to build data centres and power utilities. This is an exciting technology with much more to come as companies build this out and use this technology.

Canada does not have the same excitement as the U.S., and we may have to lower rates sooner than our U.S. partners, as our economic numbers are not as strong and our economy has been weakening. With the new proposed tax on carbon and capital gains, this will also present some challenges going forward. I remain confident in the oils and the metals, but it is with subdued optimism.

The summer always has some doldrums with the vacuum of news and earnings. This summer looks to be similar as we await economic numbers into the fall.