Friends & Partners,

Discipline Over Distraction: The View from 30 Years

As we move into February, the initial "January Effect" often gives way to a more

sober assessment of the year ahead. Having managed client portfolios through

three decades of market cycles, I have learned that this "mid-winter" period is

when the noise of daily headlines is loudest. As your family wealth advisor at

RBC Dominion Securities, my goal remains to bring clarity, discipline, and perspective to your financial picture—helping you stay informed without feeling overwhelmed.

Market Overview: Signals Amidst Uncertainty

Sharp spikes in assets like gold are not random; they send important signals

about global shifts. Today, U.S. policy changes are a primary source of global

uncertainty, affecting capital flows and what investors define as "safe". While

Canada faces challenges—with GDP growth projected near the bottom of

developed countries for 2026—U.S. companies are set for solid profit growth of

around 12–15% for the S&P 500.

Rather than a simple tech-selloff, we are seeing a move toward real assets with

scarcity and control. Investors are increasingly favoring physical assets like

metals, power, and logistics over the mere promise of future profits.

The Infrastructure of Intelligence

A recurring theme in our portfolio positioning is the "plumbing" behind the AI

revolution. Big tech plans to spend roughly $490 billion to $500 billion on AI

infrastructure in 2026 alone, covering power, data centers, and networks.

This acceleration is best highlighted by NVIDIA, which recently reported record

Data Center revenue of $51.2 billion for their recent quarter—a 66% increase

from a year ago.

Powering the Grid: The "AI Factory" Needs

This infrastructure requires immense electricity. Global electricity demand to

meet data center needs is projected to grow from 460 TWh in 2024 to over 1,000

TWh by 2030. In the U.S., data centers are set to consume more electricity than

all other energy-intensive goods combined by the end of the decade.

Core Portfolio Holdings in Power & Energy:

• Constellation Energy (CEG): The largest U.S. electricity producer is leveraging its nuclear fleet to provide 24/7 baseload power. They recently secured 20-year supply agreements with major tech leaders.
• NextEra Energy (NEE): A leader in renewables, NextEra delivered adjusted earnings of $3.71 per share in 2025. They are targeting 8%+ growth through 2032 to meet accelerating demand.
• Targa Resources (TRGP): Targa plays a critical role in NGL transportation and processing, essential for supporting the broader North American energy grid.

Strategic Portfolio Additions

In addition to our focus on physical assets and power, we recently identified a tactical

entry point into the health care sector with Novo Nordisk (NVO).

Novo Nordisk (NVO) Valuation Reset

2024 High: ~$142.44

2025 Low: ~$43.08

Our Entry Point: Below $60 (Attractive Price Entry)

After trading in the triple digits for much of 2024, the stock underwent a significant

correction, falling below $50 by late 2025. We believe this repricing provided an

excellent opportunity to own a world leader in metabolic medicine at an attractive

valuation.

February Call to Action: Maximize Your Tax Savings

The transition into February is the most critical time of year for Canadian tax

planning.

1. The RRSP Deadline: Monday, March 2, 2026

The contribution deadline for the 2025 tax year is fast approaching.

• Immediate Savings: A $10,000 RRSP deposit could save you $3,000 to $5,000 in taxes right away, depending on your income bracket (30% to 50% rates).
• 2025 Limit: You can contribute an additional $32,490 (or 18% of your 2024 earned income).

2. The 2026 TFSA Opportunity

Pairing your RRSP with the $7,000 TFSA room for 2026 is a powerful

combination. RRSPs lower your taxes now, while TFSAs allow tax-free

withdrawals anytime. Utilizing both can help build 20-30% more retirement

wealth through smart tax planning.

How We Can Help:

Please review your contribution room on CRA My Account. Our team can help

confirm your limits, decide on a funding source (cash or non-registered assets),

and ensure these contributions are aligned with our 2026 themes in power,

health care, and infrastructure.

Would you like our team to verify your remaining 2025 RRSP room before

the March 2nd deadline?