The month of April was anything but dull. Throughout the month, uncertainty continued at levels not seen since events of years ago. Those events were not man made but this one was. This actually makes it more difficult, as the rules and the statements can change and reverse at any time. The implementation of tariffs was not a surprise, however, the number of them on almost every country in the world was and, hence, the market’s reaction. Markets tend to overreact in the short term and, in my experience, it is always good to step back and look at the facts rather than get caught up in the volatility.

     In Canada, although we just finished a federal election, we will still be without direction until trade deals are completed with the U.S. Our team has been shrinking our Canadian holdings and looking for more long-term foreign holdings while the three pillars of our market have been weak. Financials have uncertainty, oils and energy have been soft and looking weaker as oil declines, and both metals and minerals have been satisfactory, but not sustainable long term, in my opinion, as there has been a rush to sell U.S. holdings and buy gold. This is not a long-term strategy. Therefore, Canada is not where we are looking for good growth until we see more clarity on the above issues. Overseas, European and Asian markets are in a spot with the trade disputes, and here, as well, I would rather wait on the sidelines and avoid both areas as this plays out.

     The fear is that tariffs could lead to a global recession, and this fear explains the markets’ recent downward move. We are seeing a slowing in growth at the moment, and we have seen some weak consumer confidence but no signs of a recession as of yet. We are being held to headline risk day to day, but I am trying to use this to our advantage. The need for data centres and power, which includes natural gas, as well as more housing and cybersecurity remain a few themes of interest. These should be strong growth areas even with all the noise around us, and I am continuing to build on these while using the volatility to our advantage.