We don't normally send out two market notes in one week, but given everything that has happened over the past few days, we thought a few additional comments might be worthwhile. Between the midterm elections, renewed concerns about AI spending, increased market volatility and a federal budget, investors have certainly had plenty to digest. Apparently, the markets didn't think one note from us this week was enough.

One interesting development we're watching is what appears to be an early rotation in the market away from high-growth technology companies toward more traditional value-oriented businesses. It's too early to know whether this will become a lasting trend, but it is worth paying attention to. After several years of strong performance from technology stocks, a broadening of market leadership into other sectors would not necessarily be a bad thing.

In fact, we began making some of these adjustments in our portfolios more than two months ago, gradually shifting some exposure away from growth-oriented investments toward companies with more attractive valuations and stronger underlying fundamentals. These weren't changes made in response to headlines, but part of our ongoing effort to position portfolios for opportunities and risks as they develop.

The new political landscape creates legitimate questions surrounding AI investment, potential government restrictions on data-centre construction and the broader economic outlook. We're watching closely to see whether these concerns begin to affect corporate spending, earnings or economic growth. If they do, we'll reassess our positioning. For now, we remain constructive but recognize that markets may be entering a period where a wider range of companies and sectors begin to lead.

Markets will always change and it’s important that we pay attention to what they are telling us. Our goal isn’t to predict every move,
but to remain diversified avoid becoming overly concentrated in anyone area and adjust our portfolios as opportunities and risks evolve.

I have also included a piece from Jamie Golombek on the 2026 Federal Budget.

As always, if you have any questions, please feel free to give us a call at any time.

Have a great weekend.

Milan