As we pass the halfway mark of 2024, it’s a good time to reflect on the year so far.

From an investment standpoint, 2024 has picked up where 2023 left off, with global markets continuing their upward trend. Contrary to the media's focus on Mega Cap Tech companies—only 1 of which are among the top 20 performers year-to-date—the market breadth has been surprisingly broad. As evidenced by data from SlickCharts, 343 companies in the S&P500 have shown positive performance so far this year (Source: www.slickcharts.com/s&p500/performance).

 

Inflation has shown signs of easing, with Canada and Europe already implementing interest rate cuts, and expectations for similar moves in the US. These developments contribute to a generally optimistic outlook for the global economy.

 

Uncertainty remains elevated, however; particularly with the upcoming election this year in the US, underscored by recent events including the attempted assassination of Donald Trump earlier this month. While such events are serious and impactful, history reminds us that resilient, well-managed businesses with strong cash positions continue to deliver essential goods and services, weathering global challenges from pandemics to inflation and geopolitical tensions.

 

Our current market stance remains cautiously optimistic, we again harken back to our favorite saying – extremely high quality well-managed companies will continue to prosper no matter the economic or political shifts.

 

As Sir John Templeton famously said, "There will always be bull markets followed by bear markets followed by bull markets," emphasizing the importance of long-term focus in investing.

 

For any questions or portfolio discussions, please don't hesitate to reach out to Peter or myself. We're here to support you every step of the way.

Thank you,

Phil