July was another summer month of back-and-forth action in the markets. We

did finally see a pullback in the overheated semiconductor companies and

some money start to flow back into other sectors. We continue to have issues

in the Middle East, and I do not see this ending anytime soon, so I expect more

volatile moves in energy shares. Additionally, there is still no indication of a

trade deal with the United States, which has also contributed to the volatility

we saw in July.

In Canada, the financials and our energy companies continue to be strong, but

overall, we continue to grind higher. If a trade deal ever gets done, this will be

very good for our country and help us get back to some good growth.

In the U.S., the economy remains strong. The artificial intelligence buildout

remains intact, and I do not see this trend changing any time soon. There have

definitely been pockets of froth in certain sectors, and the market has a way of

taking care of those issues quickly—as we saw at the end of this month. This is

a healthy move, and it’s why we continue to keep some funds on the sidelines

to take advantage of opportunities as they arise. I believe the healthcare

and software sectors have been beaten down and offer some great value at

current levels.

The overseas markets are going through the same summer doldrums, and with

two wars taking place, this is weighing on the European economies.

August is shaping up to look similar to the past two months—a lot of back-and forth

movement, but nothing meaningful in either direction. It’s a good time to

have some dry powder on the sidelines to take advantage of any opportunities

that present themselves. I do think we should see a strong finish into year-end.

Paul Belous, CIM

Senior Portfolio Manager