We hope you had a wonderful holiday season and were able to enjoy some quality time with friends and family. As we begin the new year, we wanted to share a brief update on how markets finished the fourth quarter, reflect on the strong results from 2025, and outline our outlook for the year ahead.
Equity markets ended the fourth quarter on a positive note, supported by resilient economic data, easing inflation pressures, and growing confidence that interest rates are likely near their peak. Corporate earnings generally held up better than expected, allowing equities to close the year higher despite periods of volatility along the way.
Looking back, 2025 delivered stronger and more consistent returns than many investors anticipated. Entering the year, expectations were cautious given higher interest rates and ongoing economic uncertainty. Instead, growth proved resilient, labour markets remained healthy, and consumer spending held up well, contributing to a very strong two-year period for markets overall.
Fixed income and alternative investments also contributed meaningfully this year. Higher yields allowed bonds to once again provide income and stability, while alternatives helped diversify portfolios beyond traditional stock and bond markets. These allocations are designed not only to enhance returns, but also to help dampen downside risk when markets inevitably become more challenging.
Looking ahead to 2026, we remain cautiously optimistic. We believe the economy is healthy enough to support positive returns, though after two strong years, we expect results to be more moderate and uneven. In this environment, staying disciplined, well diversified, and focused on quality remains especially important.
Thank you for your continued trust and confidence. We truly appreciate the opportunity to work with you and your family, and we wish you a healthy, happy, and successful 2026. As always, please feel free to reach out if you would like to review your strategy or have any questions.