Most stock markets around the globe continued their upward trend in the second quarter, albeit at a more muted pace than we saw in Q1. After a strong start in April, markets pulled back in May amidst another round of negative trade rhetoric from the US president. June saw that rhetoric cool, and the focus quickly shifted to more accommodative language from the US Federal Reserve, hinting at a potential interest rate cut in the coming weeks.

The TSX finished the quarter up 1.74%, the S&P 500 was up 3.79%. The Chinese market suffered the most over the quarter as trade tensions with the US continue to weigh on Chinese companies (Shanghai Composite down 7.72% CAD). Oil declined by just over 5%. A late surge in the Canadian dollar served as a 2% headwind for investment returns on US investments when reported in Canadian Dollar terms.

We are very pleased with our results this quarter. 3/4 of our core US Equities outperformed the broader S&P500 index, and our sole core Canadian Equity (Loblaws) outperformed the broader TSX (Canadian) index. In addition, 2/3 of our US sector based ETFs also outperformed the S&P500. Finally, our core mutual funds positions had positive returns on the quarter, as did our Fixed Income positions in both the Rockridge Private Debt & Real Estate Pool and US Corporate bonds, which provided excellent support in a challenging fixed income environment.

We continue to look for opportunities to add to existing positions, while managing our risk exposure, during the what has officially become the longest expansionary period on record.

-The Gilman Deters Private Wealth team

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