January ushers in the new calendar year and with it brings the opportunity to both reflect as well as to plan ahead. As the philosopher George Santaya said in his book, The Life of Reason, “Those who cannot remember the past are condemned to repeat it.” With the advent of yet another hugely impactful technological change (Artificial Intelligence or “AI”) it is easy to get caught up in the notion that “all that is new is necessarily better” and that “this time is different.” While the circumstances are indeed different, one thing that experience teaches us is that, as King Solomon wrote in Ecclesiastes, “There is nothing new under the sun.” Technological advances in each generation may indeed differ but human reaction to those changes remain the same, vacillating between extremes of greed and fear – and perhaps it is that to which King Solomon was referring and about which the philosopher Santaya was warning. AI is a tool which may help us in our daily routines. It may improve the lives of some while eliminating many of the tasks currently performed by others, but it cannot replace the human being.

As has been my practice for well over a decade, my first monthly newsletter of the year is an opportunity for me to share some of the many lessons which I have personally (not AI) learned over the previous year. I hope some of them resonate with you!

1.AI is an amazing tool – Part I: A client of many years is a lawyer in a downtown law firm, and he recently told me that he used AI for the first time to analyze several lengthy legal discourses. He told me that literally in a matter of minutes the AI software he tried was able to do what a junior associate would take 6-8 hours of “billable hours” to complete. The cost savings to the law firm and presumably to their clients will undoubtedly be incredible!

2.AI is an amazing tool – Part II: that same lawyer started to surmise that due to AI, law firms may have less need for junior associates, which may translate into less lawyers being hired, and therefore less office space may be needed…in other words, the ramifications of implementing AI may be felt in more ways than imagined…

3.There is no limit to the potential – Part I: The main U.S. stock index – the S&P 500 – rocketed higher in 2022 and 2023 mainly due to the famed Mag 7 – Microsoft, Google (Alphabet), Facebook (Meta), Nvidia, Amazon and Tesla. Active portfolio managers had a difficult time keeping up with the performance of this “passive” index, primarily due to its heavy concentration of those 7 stocks, as most market indices weight the returns of the largest companies more than the returns of the smaller companies. The result is a skewed view of how the “average” stock performed.

4.There is no limit to the potential – Part II: In 2025, while the S&P 500 still had very good performance, it paled in comparison to its previous two years. Why? Due to the same Mag 7 – as there is ALWAYS a limit to the heights in valuation a company can sustain. So, which areas outperformed the technologically dominant Mag 7 in 2025? Gold, silver, uranium, platinum. The times are a changin’…

5.Is it a good time to invest? Part I: Without a doubt, the most common question I received in 2025, as the markets advanced, pulled back on the announcement of Trump tariffs, and then advanced right through to the end of the year, was, “Is it a good time to invest?” Those who sat on the sidelines in 2025 certainly suffered from “FOMO” (Fear of Missing Out) syndrome. In short, it was certainly a time to invest, as each market high was followed by yet another market high.

6.Is it a good time to invest? Part II: With many markets, including Canada, the U.S., Europe, Japan, etc. near or at all-time highs, as are many of the commodity prices like gold, silver, platinum and uranium, investors need to remember that valuation eventually does matter and it may be a time to take some gains off the table (EVEN IF this means paying some taxes), leaving some money in cash for upcoming investment opportunities, and most of all…being patient.

7.Income producing stocks – Part I: While not as eye-catching as AI chips produced by Nvidia, or VR goggles produced by Meta, stocks in banks, pipelines, utility companies, and some basic consumer companies, provided investors with great “total” returns (gains plus the dividend income) in 2025. While these stocks lagged the markets for the previous 3 years, on the mere “sniff” of interest rates dropping, these “interest-rate sensitive” stocks started to climb in value. This is a pattern I have seen several times in my career - the investment version of the tortoise vs. the hare story.

8.Income producing stocks – Part II: While many of these stocks are also trading near all-time highs, if interest rates continue to fall, the dividends of these stocks will continue to get more attractive. As well, historically they are less volatile than the markets. So, if you are concerned about future volatility, owning these may be just what the doctor ordered!

9.“That young guy has never seen a down market” – in late 1999, as a rookie advisor in my third year in the business, I walked out of a presentation by a highly rated telecommunications analyst who was touting the future returns of Bell Canada (BCE), based on its ownership of Nortel (of blessed memory). I overheard a seasoned portfolio manager (who was probably about my age today) who quipped, “That young guy has never seen a down market.” Just sayin…

Bottom line

As we enter a new calendar year, there is a lot for investors to consider. The first thing is to take care of your own health, both physical, mental as well as financial. This includes making sure your will and powers of attorney are up to date, that you have filled out the Krygier Wealth Management Family Inventory, or another version of such, and that you ensure your investment strategies match your individual needs both for the near-term and for the long-term. Contact us to discuss any of these needs, or about any concerns you may have for the coming year, and let’s have another great one!

Global benchmarks

As of December 31, 2025 (Canadian $ Returns – except where noted)

Source: RBC Capital Markets Quantitative Research