Markets continue to be choppy into the end of this year.  It has been an interesting year to say the least as we look back. It certainly followed the pattern of the 3 T’s…. Trump, Tariffs, and Taxes and all lived up to a good amount of volatility. The themes of data centers, the need for more power, and cybersecurity continued to propel the U.S. market. In Canada, it was gold and silver as the big drivers with some help from financials. Energy prices were negatively affected with the declining price of oil.  All in all, we had a good year in our portfolios and even through the talk of bubbles and expensive markets I still see good things for 2026.

     We are starting off the year with a Federal Reserve continuing to be in the camp to lower rates. We will be seeing U.S. corporations have lower tax rates, and financials getting lower regulation. This all bodes well for U.S. equity markets. The buildout of data centers and the need for more power will continue throughout the next year.  Housing of which I didn’t mention above was not as good as expected in 2025, and this will be an issue to keep an eye on as North America does need more affordable housing.  We might see a change in the leaders of the magnificent seven as their spending for data centers might finally slowdown in the next year and this could provide a good opportunity for the rest of the 493 companies in the S&P 500 which have been ignored.

     In Canada, we too have a low-interest rate environment, but we need a trade agreement. I am seeing our government looking at ways to get around this, and to do some much-needed capital projects that are positive signs for next year. Our country does have a lot of the minerals and mines needed for this AI buildout so Canada will play a role. Oil does not appear to be heading higher anytime soon as there is currently a lot more supply than demand and this will keep pressure on oil prices to stay low. Canada will have headwinds heading into the new year, but I remain positive if a trade deal does come about, it will be good for our companies and markets.  Europe and Asia look ok, but I see better opportunities here closer to home.

     It will be an interesting year next year to say the least, but we have a game plan and look forward to moving your financial well-being in the right direction.