May 2023 - Monthly Update

Kaitlyn Richardson - May 01, 2023

Hope this note finds you well heading into the weekend.

Monthly Update, Peebles Martin Wealth Management, BMO Nesbitt Burns

April was another good month for your portfolio and builds on the general trend of recovery and growth of the last six months.


We're getting back to a more normal level of baseline uncertainty. This is happening in part, as we move further away from the big changes in 2022 that North America experienced around inflation, interest rates and supply chain.


Investment markets for currencies, bonds, and stocks continue to stabilize. Issues around supply chain have largely been solved leading to more consistent and stable access to goods and services. Price stability breeds confidence and translates into continued economic activity.


The businesses that we own are extremely well run, profitable and central to the economy while providing something tangible that creates a true economic value.


The job market is healthy and corporations continue to invest in people and technology to remain profitable and relevant into the future. Executives are confirming their respective businesses are in great shape by raising guidance of what we should expect going forward. While we do not anticipate the years ahead to produce an economic boom, the present conditions do not reflect an economic bust either.


Tighter economic conditions and higher than normal overnight interest rates, have slowed down the pace of economic expansion to bring inflation under control and back in line with the long term 2% target. Later this year economic conditions will moderate and become less tight as the North American economy shifts back into a normal cycle of economic expansion.


Your investment portfolio remains in a strong and stable position.

The view from Brian Belski, BMO's Chief Investment Strategist:

“The S&P 500 logged a … gain in April amid a fairly narrow trading range and lower VIX (Volatility Index) backdrop with mega-cap “tech” stocks once again among the notable outperformers. The kickoff of Q1 earnings season was the highlight of the month, but the widely anticipated earnings apocalypse predicted by many investors has yet to materialize. In fact, with ~70% of the index having reported thus far, quarterly earnings have come in better than feared with EPS beat rates and positive surprises tracking above 10-yr averages. This has helped slash the estimated Q1 y/y EPS decline by more than half, while 2023 bottom-up EPS has ticked higher in the latter part of April. On the performance front, we do not see a huge amount of price upside at the index level in the coming months … [W]e believe the host of uncertainties investors continue to face will lead to choppiness and a range-bound market for the foreseeable future. As such, stock selection, not indexing, should be the focus, in our view, particularly given the elevated levels of NTM P/E and NTM EPS growth dispersion across companies... The S&P/TSX gained … in April, outperforming the S&P 500 … and partially reversing the sharp underperformance in March. From a sector perspective, the gain was relatively broad as all 11 GICS (Global Industry Classification Standard) sectors posted positive returns this month. While Communication Services was the top sector, the heavily weighted Energy and Materials sectors both meaningfully outperformed, driving the bulk of the TSX outperformance in April. Meanwhile, Industrials and Real Estate were key laggards with many sub-industries posting negative returns. Overall, we continue to believe the TSX remains well positioned to outperform in the near term. In our opinion the strong relative value and cash flow position of the TSX remains a clear source of downside protection in 2023.”

Portfolio Strategy – May 2023. BMO Capital Markets.


Stocks in your portfolio that made a new 52 week high this past month:


Stocks in your portfolio that made a new 52 week low this past month:


The Loonie was unchanged versus the U.S. dollar at:


Thank you,

Ian, Gab, Kaitlyn & Nataliia