Markets continue to be weak into the new year and it has been long overdue in the technology sector that has earnings multiples at very high levels, levels that would be hard to maintain. We also have a little uncertainty this week until the new U.S. administration comes in on the 20th and we get some clarity on tariffs. I have felt for a long time the largest companies in the world were taking in all the funds and maybe this year we will finally see this area give back and allow other companies, which are a lot cheaper, to get some recognition. This means we could see the daily index moves become large as these companies control almost 30% of the indices. A few more issues; the bond market in the 10 year and 30 year area in the U.S. has risen to 5% which there is a lot of talk around but to be honest that is actually a long term normal rate.  We had great economic numbers which raised the concern the Federal Reserve may hold off lowering rates all of which caused a short term pullback.

I am actually welcoming this pullback and it allows us to look at adding to our portfolios in the areas of natural gas, cyber security, metals and minerals among a few other areas which have great potential going forward. The theme of building data centers and artificial intelligence are still in the early phases and they will need more power and construction materials going forward. Now we have a devastating fire in California requiring a rebuild and this too will require lots of construction material - all positives for Canada as well. Once we solve our political uncertainty we should see better events happening for our country.

We shall see how the new Trump era plays out in the next few weeks but overall the U.S. economy remains strong and he is pro-U.S. so I see this continuing and will use the short term pullback to increase our exposure to the above themes.

Have a great day.