We trust this letter finds you in good spirits as we delve into the promising opportunities that the new year has brought forth. Reflecting on our journey together through 2023, we remain committed to navigating the intricacies of the market landscape while keeping your investment needs at the forefront of our strategies.

 

Update on Q1 2024

 

2024 commenced with a remarkable start in broader markets, reminiscent of the buoyancy witnessed in 2023. We conducted two broad rebalances to capture gains and realign our positions. Notably, our digital asset holdings underwent an additional rebalance as Bitcoin and Ethereum reached record highs.

 

Digital assets and technology continued to lead the way in our portfolios’ performance, with other core investments in minimum volatility ETFs beginning to catch up as market dynamics evolve. While we maintain our bullish outlook on digital assets, we prudently manage its weight in portfolios to mitigate risks.

 

Our tactical hedge in energy proved quite fruitful as oil prices surged towards US$85 a barrel. We maintain our favour towards U.S. assets and currency, considering the U.S.’s stronger position to withstand economic headwinds compared to Canada.

 

As anticipated, headwinds persist into 2024, with imminent rate cuts on the horizon. Our defensive strategy in minimum volatility ETFs aligns with this outlook, providing stability amidst market uncertainties.

 

We strategically adjusted the duration of our fixed income solutions, benefiting from the slower pace of anticipated rate cuts. The addition of two new public fixed income funds and a new private credit manager further enhances our portfolio’s credit quality and income potential.

 

Looking Ahead

 

While we anticipate opportunities for equities to continue their upward trajectory into the summer, we remain vigilant against looming headwinds. Geopolitical tensions, including ongoing conflicts and the upcoming U.S. Presidential election, coupled with economic uncertainties globally, underscore the importance of our diversified and resilient approach to investment.

 

As always, we are here to ensure that our strategies align with your investment objectives. Please feel free to reach out for a discussion about your portfolio in light of these updates. Your trust and support are invaluable to us.

Sincerely,

The Team at Stonehaven Private Counsel

 

About the Authors
This commentary was prepared by Jeff Sproul, PFP®, CIM®, Victor Kuntzevitsky, CFA, CAIA, and Grant Dawes, CIM®, CFP®, TEP of Stonehaven Private Counsel at Wellington-Altus Private Counsel. Together, they provide portfolio management and wealth planning guidance to business owners, executives, affluent families, retirees, and multi-generational wealth clients. Learn more about their experience, credentials, and areas of expertise and explore how Stonehaven supports different client needs through its work with business owners, retirees, professionals, families, and next-generation wealth clients.

The material contained herein has been provided for information purposes only.  The information has been drawn from sources believed to be reliable.  Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment.  The information does not provide financial, legal, tax or investment advice.  Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance.  This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document.  Wellington-Altus Private Counsel  (WAPC) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPC assume any liability for any loss that may result from the reliance by any person upon any such information or opinions.  Before acting on any of the above, please contact your financial advisor.