A. North American Equity Market Statistics
During the first quarter, the Canadian equity market as measured by the S&P/TSX increased by 6.4%. Year-over-year, the index increased 13%, including dividends. The markets continued to be preoccupied with Central Banks as they focused on inflation and how to get it down to more “acceptable levels”. The large rise in interest rates throughout most of 2023 weighed heavily on capital intensive businesses that typically utilize higher levels of debt on their balance sheets. This included banks, real estate businesses along with utilities/infrastructure companies. As we discussed in our last two quarterly reports, some of the businesses we own including infrastructure and precious metals businesses struggled throughout much of 2023, finally rebounding in November and December. For the first quarter of this year these same businesses continued to make solid advances despite a reversal in interest rates in February and March, as inflationary concerns returned.
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