Good day,

 

It feels as though spring has tiptoed in, promising warmer days ahead.

 

This is a perfect time to dive into how things have been to kick off the year;

 

Reflecting on the start to our year, Q1 felt much like a sequel to 2023, with its mix of ongoing geopolitical tensions in the Middle East and Ukraine, alongside lingering concerns about rising rates. Yet amidst these worries, rays of optimism shone through. Inflation remained in check, and there’s talk of potential rate cuts ahead.

 

While the market may have sprinted ahead in Q1, it’s wise to keep focused on a much longer time horizon. Whether inflation lingers or rates take their time to retreat, investing in robust cash-rich businesses offers a certain level of comfort in our portfolios irrespective of any short-term market fluctuations.

 

Looking ahead, we maintain our bullish stance on the equity market, foreseeing potential rate cuts later this year. Such moves should offer welcome relief to both businesses and consumers alike.

 

While the challenges persisting over the past couple of years remain, our optimism stems from our belief that by continuing to invest in high quality well-run businesses they will thrive over time.

 

I believe Peter Lynch said it best: " Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves."

 

Please feel free to connect with Peter and/or myself if you have any questions or would like to discuss your portfolio, we’re here for you, anytime.

 

Warm regards,

Phil