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“Bulls markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria” – Sir John Templeton After a stellar 2024, investors displayed some caution during the month of December, largely driven by the hawkish tone by the United States Federal Reserve during its meeting on December 18th, 2024. The committee delivered a 25 basis points cut, in line with market expectations, however it has dialed back on the expectations of policy easing during 2025. The Fed dots plot that shows the leaning of committee participants on a potential rate trajectory indicated that median policy rate in the United States, as at the end of 2025, is now projected to be 3.875%, up from 3.375% as projected in meeting during September (See Figure 1 and 2). In other words, the rate cut expectations were dialed back from four cuts to only two cuts during 2025. The fixed income asset class witnessed further losses as bond yields jumped higher on a more hawkish than anticipated tone of the Federal Reserve. Figure 1: Federal Open Market Committee Dots Plot 18th December 2024 Source: Bloomberg   Figure 2: Fed Dots Median Source: Bloomberg On this side of the border, the Bank of Canada delivered another jumbo cut of 50 basis points on 11 December and brought the policy rates to 3.25%. Increasing unemployment put together with benign inflation readings had placed the Bank of Canada in a comfortable position to ease monetary policy. The resilience of the United States economy, even in the face of high interest rates, backs the caution in the tone of the United States Federal Reserve on forward trajectory of policy rates. On the other hand, back-to-back jumbo rate cuts by the Bank of Canada were underpinned by the anemic growth in the Canadian economy. While Bank of Canada guided for a more measured approach to rate cuts going forward, the concern around the uncertainty caused by threat of 25% tariffs on good exported from Canada to the United States was palpable. We think the heightened caution resulted in the absence of a typical ‘Santa Claus rally’ during 2024. The Santa Claus rally refers to a seasonal advance in the North American markets during the sparsely traded last weeks of the year. Nevertheless, we think the silver lining of recent price action and market commentary is that the market sentiment can no longer be classified as euphoric, i.e., if one were to heed to the wise words of “Sir John Templeton”, the case of bull markets being over is not strong yet. We think the that markets in 2025 are set up to face several crosscurrents and investors are taking a notice. We note a few of the most importance as below The rising bond yields even in face of the lower interest rates implies bonds markets’ concerns on potential resurgence of inflation continue to linger, therefore, Central Banks can not put this issue to bed yet. The potential for increase in geopolitical tensions is high given the recent posturing of the incoming Trump administration on political issues around the globe. Trade and tariffs are going to be the weapon of choice for aggression and retaliation, which bring direct but idiosyncratic risks to the capital markets.   The risk of a recession remains low; and policy rate trajectory continues to be favorable, though at a slower pace. Lower regulations and business friendly policies from the new administration in the United States are likely to support markets. As per Bloomberg data, the index level headline earnings growth expectations for the S&P 500 Index and S&P TSX Index are in the range in low-to-mid double digits. As long as the expected earnings growth remains robust, the case for constructive outlook on markets remains strong, in our opinion. Overall, we think the ebb and flow of developments around the above topics will determine the direction of the markets. Layering on high valuation and healthy corporate profits, we think a choppy but still a net positive price action could be the theme for North American markets this year.

The S&P 500 Index and the S&P TSX Index both registered healthy gains during the month of November as the North American equity markets celebrated the results of the United States Presidential Elections.  Equity Investors viewed the expectations of continuing tax breaks from 2017 and less onerous regulations as a positive.  The fixed income asset class was also green on both sides of the border; however, we think this was largely driven by investors dialing back expectations of higher inflation due to trade wars. The Cabinet announcements by the President-Elect, Donald Trump, were keenly analyzed by investors. The announcement of ‘Scott Bessent’ being picked as a Treasury Secretary, who has been known to have a moderate and prudent voice about tariffs, brought some relief to fixed income investors after a tough October. Higher tariffs will increase the cost of imports and, therefore, are inflationary.   The uncertainty around the policy rate trajectory has increased again with a higher potential of trade wars and its inflationary impact. Although the details on tariffs are still missing, initial volleys have been fired. China has prohibited exports of Gallium, Germanium, and Antimony to the United States in response to the USA's latest ban on export of advanced memory chips and chip-making tools to China. These banned materials are used in applications across semiconductors, solar cells, and military. The fixed income markets have reacted adversely to the developments given the impact of tariffs on inflation and the rate trajectory. Equity markets, however, are still to discount this development, in our view. The United States accounts for nearly two-thirds of Canada’s trade and therefore tariffs will have a substantial impact on the Canadian economy. Whether tariffs are implemented or not remains to be seen, however, it is certain that the rhetoric on trade will increase with the incoming United States administration. We think it will bring idiosyncratic volatility to the North American equity markets. Notwithstanding some concerns, the macro environment has continued to remain mostly favorable for the markets so far, in our view. The headline inflation has been benign for Canada and the United States (see Figure 1). The unemployment rate in Canada has continued to increase; while the unemployment rate in the United States has remained low by historical standards (see figure 2). Given the increase in unemployment numbers in Canada, industry participants are expecting a 50 basis points cut in policy rates after the upcoming Bank of Canada meeting on the 11th of December. In the United States, the expectations are more muted at 25 basis-points cut on the 18th of December. Figure 1: Headline inflation remains benign in Canada and the United States Source: Bloomberg Figure 2: Unemployment has been rising in Canada Source: Bloomberg Looking ahead, we think some market jitters can be expected due to the tariff talks and the potential escalation in geopolitical tensions. However, as long as macro environment remains favourable with robust economic data and accommodative Central Banks policies; the markets should overcome any short-term jitters and extend the current bull run. We wish our readers very Happy Holidays.

The holiday season is upon us! We are quickly approaching one of the busiest times of the year and it can be so easy to get wrapped up in its comings and goings. We partake in family traditions like Christmas gatherings, decorating the tree, or perhaps for your family it means watching “The Grinch” together every year.   We tend to focus on those closest to us – family, friends, and/or colleagues. But perhaps there are takeaways we could draw on from The Grinch. We must not forget to show kindness to not only those around us, but to strangers as well, just as Cindy Lou Who demonstrated to The Grinch. There are many who no longer have family with them to celebrate with and some may be less fortunate. A small gesture can go a long way to help everyone in our community have a wonderful holiday season. Several community organizations host social gatherings or Christmas meals for everyone to enjoy. This is an easy and meaningful way for our community to come together, enjoy each other’s company, and make new friends in what can be a difficult time for many.   You could also consider donations to local organizations or charities, like food banks or service clubs that help those who may have fallen on hard times. Donations do not always have to be monetary; often organizations struggle to find enough volunteers during these busy times. Your time is often just as valuable as financial assistance. It is also a good way for those who want to help but may not necessarily be able to financially.   We are lucky to live in a community that takes care of each other. We can continue to care for and support each other by buying from local businesses. We are fortunate to have such a wide array of small businesses in our area, so take the time to go out and see what they can offer you and your loved ones this holiday season.   So, in the words of Dr. Seuss “What if Christmas, he thought, doesn’t come from a store. What is Christmas…perhaps…Christmas means a little bit more!”.   We wish you all a very happy holiday season and a healthy and prosperous new year!     Allison Martin is a Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact her at 613-774-2456 or visit ofarrellwealth.com to discuss your particular circumstances prior to acting on the information above. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

HOME SERVICES ADVANTAGE CARRIERS ABOUT US More CONNECT WITH US Our Team We are proud of our dedicated Team members who provide top-tier services with professionalism every day. Our Team Request your quote anchor Dermid O'Farrell President & Managing Partner O'Farrell Financial Services Inc. Alex Zewuster Director of Operations & Partner O'Farrell Financial Services Inc. Jayne Lavergne Receptionist & Records Coordinator O'Farrell Financial Services Inc. Donna Lee O'Farrell Operations Consultant & Partner O'Farrell Financial Services Inc. Kari Ross Operations Associate & Partner O'Farrell Financial Services Inc. Christine Aubin Branch Practices & Partner O'Farrell Financial Services Inc. Erin Campbell Employee Benefits Group Broker O'Farrell Financial Services Inc. Andrew MacKinnon Director of Finance & Partner O'Farrell Financial Services Inc. Andrew Beek IT Manager O'Farrell Financial Services Inc. OFSI Team The O'Farrell Story Most businesses have a story behind them, and O’Farrell is no different. In 1997, Dermid and Donna Lee O’Farrell founded the company with a belief that when relationships are strong, people will have the confidence to act on their plans. Recognizing that financial planning would be deeply valuable to the people in their community and surrounding area, they set out to build a company that would provide clients with an experience of quality advice, professional discipline, and compassion; something that their clients could believe in, something they can trust. From the beginning, the company has grown steadily each year and has proven that their belief was one that was shared by their clients. While it was not without its challenges and hardships, Dermid and Donna Lee put in the tough work that is required to build any meaningful business. Now, as the company celebrates its’ 28th year in business, they have attracted a Team that shares their commitment to relationship and their desire to help clients plan for their financial future. Ready to discuss how an employee compensation plan can enhance your business? Our Group Benefits Brokers can provide a no-cost, no-obligation analysis to evaluate your group retirement savings plan and benefits needs. Please contact us using one of the methods below. O’Farrell Financial Services Inc. 613.774.2456 Toll-free: 1.877.989.1997 Fax: 613.774.0371 Monday - Friday 8:30 a.m. - 4:30 p.m. benefits@ofsi.ca We have five locations in Eastern Ontario and the Ottawa Valley to serve you. Name Phone Number City / Town Email Address Prefered Method of Contact Reason for Contacting Us Preferred Office Location Who would you like to connect with? SEND CONTACT REQUEST Thanks for submitting! By providing your email address, you provide O’Farrell Financial Services Inc. with your express consent to receive Commercial Electronic Messages related to finances and/or investments that may be of interest to you. If you no longer want to receive emails of this nature, you can withdraw your consent at any time by contacting marketing@ofsi.ca . Office Locator We are regionally located across Eastern Ontario and the Ottawa Valley to serve you. O’Farrell Financial Services Inc. 40 Brock Street, Brockville, ON 613.865.8080 O’Farrell Financial Services Inc. 108 Second Street East, Unit 103, Cornwall, ON 613.935.6254 O’Farrell Financial Services Inc. 292 County Road 44, Kemptville, ON 613.258.1997 O’Farrell Financial Services Inc. 1035 O’Brien Road, Unit 14, Renfrew, ON 343.361.0212 O’Farrell Financial Services Inc. 510 St. Lawrence Street, P.O. Box 518, Winchester, ON 613.774.2456 Looking for information regarding investments and wealth planning? Visit O’Farrell Wealth & Estate Planning. O'FARRELL WEALTH & ESTATE PLANNING © 2023 | All Rights Reserved We collaborate with you and each other to deliver unbiased advice that meets your personal and business needs. Investments and wealth planning are provided through Assante Capital Management Ltd. (“ACM”). Mutual fund products are provided through Assante Financial Management Ltd. (“AFM”). Employee benefits and pension consulting services, mortgage lending services, and insurance products and services are provided through O’Farrell Financial Services Inc. (“OFSI”). OFSI is an independent company unrelated to ACM and AFM. AFM, ACM, and/or its affiliates are not responsible for any service or product provided through O’Farrell Financial Services Inc. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association of Canada (“MFDA”) and MFDA Investor Protection Corporation (excluding Quebec).

Wealth planning for everyone, in all stages of life WEALTH & ESTATE PLANNING Group Benefits & Group RRSPs, for all sizes of business O'FARRELL FINANCIAL SERVICES INC. < Back to Home Page Our Team We are proud of our dedicated O'Farrell Team members who provide top-tier service with professionalism every day. Dermid O'Farrell President & Managing Partner O'Farrell Financial Services Inc. Cynthia Batchelor Financial Advisor Assante Capital Management Ltd. Partner O'Farrell Financial Services Inc. Andrew MacKinnon, CPA Director of Finance & Partner O'Farrell Financial Services Inc. Allison Martin Financial Advisor Assante Capital Management Ltd. Andrew Beek IT Manager O'Farrell Financial Services Inc. Brenda Mayhew Administrative Associate to Cynthia Batchelor Assante Capital Management Ltd. Donna Lee O'Farrell Operations Consultant & Partner O'Farrell Financial Services Inc. Daren Givoque, CDFA Financial Advisor Assante Capital Management Ltd. Partner O'Farrell Financial Services Inc. Alex Zewuster Director of Operations & Partner O'Farrell Financial Services Inc. Peggy Mathieson Financial Advisor Assante Capital Management Ltd. Taylor Connell Administrative Associate to Peggy Mathieson Assante Capital Management Ltd. Jenna Piché Administrative Associate to Daren Givoque & Cole Seabrook Assante Capital Management Ltd. Matthew Felker, EPC Financial Advisor Assante Capital Management Ltd. Partner O'Farrell Financial Services Inc. Vipul Arora, CFA Portfolio Manager Assante Capital Management Ltd. Partner O'Farrell Financial Services Inc. Kari Ross Operations Associate & Partner O'Farrell Financial Services Inc. Cole Seabrook Financial Advisor Assante Capital Management Ltd. Connie Heffernan Administrative Associate to Keeley Patterson Assante Capital Management Ltd. Jennifer Shaddick Administrative Associate to Sarah Chisholm & Hugh O'Neill Assante Capital Management Ltd. Keeley Patterson, CFP® Financial Advisor Assante Capital Management Ltd. Partner O'Farrell Financial Services Inc. Christine Aubin Branch Practices & Partner O'Farrell Financial Services Inc. Erin Campbell Employee Benefits Group Broker O'Farrell Financial Services Inc. Bonnie Wilson Financial Advisor Assante Financial Management Ltd. Haley Hopkins Administrative Associate to Daren Givoque & Cole Seabrook Assante Capital Management Ltd. Amanda Pratt Administrative Associate to Matthew Felker Assante Capital Management Ltd. Hugh O'Neill Insurance Advisor Assante Estate & Insurance Services Inc. Partner O'Farrell Financial Services Inc. Sarah Chisholm Financial Advisor Assante Capital Management Ltd. Partner O'Farrell Financial Services Inc. Andrew Goetz Financial Advisor Assante Capital Management Ltd. Kieran Beavis Investment Funds Associate Assante Capital Management Ltd. Jayne Lavergne Receptionist & Record Coordinator O'Farrell Financial Services Inc. Scott Prince Investment Funds Associate Assante Capital Management Ltd. Connect with a Team member today and get focused on your future. The O’Farrell Team looks forward to helping you plan a growth strategy for your wealth that you can preserve and pass on. CONNECT WITH US CONTACT YOUR O'FARRELL TEAM TODAY AT ONE OF OUR FIVE LOCATIONS: Feel free to contact us toll-free: 877.989.1997 BROCKVILLE 613.865.8080 40 Brock Street, Brockville ON CORNWALL 613.935.6254 108 Second Street East Unit 103 Cornwall ON KEMPTVILLE 613.258.1997 292 County Road 44 Kemptville ON RENFREW 343.361.0212 1035 O'Brien Road Unit 14 Renfrew ON WINCHESTER 613.774.2456 510 St. Lawrence Street P.O. Box 518 Winchester ON © 2023 | All Rights Reserved We collaborate with you and each other to deliver unbiased advice that meets your personal and business needs. Investments and wealth planning are provided through Assante Capital Management Ltd. (“ACM”). Mutual fund products are provided through Assante Financial Management Ltd. (“AFM”). Employee benefits and pension consulting services, mortgage lending services, and insurance products and services are provided through O’Farrell Financial Services Inc. (“OFSI”). OFSI is an independent company unrelated to ACM and AFM. AFM, ACM, and/or its affiliates are not responsible for any service or product provided through O’Farrell Financial Services Inc. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association of Canada (“MFDA”) and MFDA Investor Protection Corporation (excluding Quebec).

HOME SERVICES ADVANTAGE COMMUNITY RESOURCES ABOUT US More CONNECT WITH US Invest in your future with a personalized Wealth Plan. Anchor 1 Are you looking for a wealth plan that fits your life now and grows with you? With your goals and dreams in mind, our Financial Advisors work with you to create a plan that grows your wealth and secures your future. Together we find the right solution to grow your investments, and keep you protected. Your Financial Journey You have a vision of where you want to go in life — all you need now is a map! Our Financial Advisors listen to you and apply their knowledge and tools to guide you towards your financial goals. We provide you with a practical, personalized wealth plan to set you on the right path. When life puts up a roadblock, we will be here to steer you in the right direction. We provide a multitude of investment options that we tailor to your specific needs. These include registered, non-registered, fully guaranteed, and non-guaranteed investment vehicles. Experience something different with the O’Farrell Wealth & Estate Planning Team. CONTACT US TODAY Meet the Advisors Matthew Felker Financial Advisor Assante Capital Management Ltd. Daren Givoque Financial Advisor Assante Capital Management Ltd. Keeley Patterson Financial Advisor Assante Capital Management Ltd. Vipul Arora Portfolio Manager Assante Capital Management Ltd. Hugh O'Neill Insurance Advisor Assante Estate & Insurance Services Inc. Sarah Chisholm Financial Advisor Assante Capital Management Ltd. Cynthia Batchelor Financial Advisor Assante Capital Management Ltd. Peggy Mathieson Financial Advisor Assante Capital Management Ltd. Cole Seabrook Financial Advisor Assante Capital Management Ltd. Bonnie Wilson Financial Advisor Assante Financial Management Ltd. Andrew Goetz Financial Advisor Assante Capital Management Ltd. Allison Martin Financial Advisor Assante Capital Management Ltd. MEET OUR TEAM Our Services We offer the following suite of services to meet your personal and business Wealth Planning needs: Insurance Investments Retirement Planning Succession & Estate Planning Business & Tax Planning Wealth Management Discretionary Trading Mortgage Referrals * Charitable Giving Visit our Services page to read more about each of our services. Read more I highly recommend Sarah Chisholm and O’Farrell Wealth for all your investment needs. I've been with them for 3 years and have had a great experience so far! I love that Sarah is always there to help me with my financial questions — knowing she is just a phone call away for any concerns I have regarding my investments is a real comfort to me. I feel very comfortable with Sarah and she is very knowledgeable. I came to O’Farrell looking for a retirement savings plan and a few TFSAs and I left feeling like I made the right decision going with them. Jenna Blais Contact Us Today Live the life you want today and secure the legacy you want for tomorrow. Contact the O’Farrell Team to start planning a growth strategy for your wealth that you can preserve and pass on. Name Phone Number Email Address Prefered Method of Contact Reason for Contacting Us Preferred Office Location Who would you like to connect with? SEND CONTACT REQUEST Thanks for submitting! By providing your email address, you provide O’Farrell Wealth & Estate Planning with your express consent to receive Commercial Electronic Messages related to finances and/or investments that may be of interest to you. If you no longer want to receive emails of this nature, you can withdraw your consent at any time by contacting ofarrell@assante.com Meet with an O'Farrell Advisor at one of our five office locations. Feel free to contact us toll-free: 1.877.989.1997 BROCKVILLE 613.865.8080 40 Brock Street, Brockville ON CORNWALL 613.935.6254 108 Second Street East Unit 103 Cornwall ON KEMPTVILLE 613.258.1997 292 County Road 44 Kemptville ON RENFREW 343.361.0212 1035 O'Brien Road Unit 14 Renfrew ON WINCHESTER 613.774.2456 510 St. Lawrence Street P.O. Box 518 Winchester ON Looking for information regarding employee benefits and group pension plans? Visit O’Farrell Financial Services EMPLOYEE BENEFITS & GROUP RRSP *Mortgage products and services are provided by Assante Capital Management Ltd. through its strategic partnership with Bank of Montreal. We collaborate with you and each other to deliver unbiased advice that meets your personal and business needs. Important Disclosures Assante Capital Management Ltd. (“ACM”) is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. Know Your Advisor: Advisor Report | Canadian Investment Regulatory Organization (ciro.ca) Assante Financial Management Ltd. (“AFM”) is a member of the Mutual Fund Dealers Association of Canada (“MFDA”) and MFDA Investor Protection Corporation. www.mfda.ca Stocks, bonds and mutual funds are provided through ACM. Mutual fund products are provided through AFM. Only those services offered through ACM are covered by the Canadian Investor Protection Fund, and only those services offered through AFM are covered by the MFDA Investor Protection Corporation. For more information please visit http://www.assante.com/legal or contact our office for clarification. To research the background, qualifications and disciplinary information on advisors at IIROC regulated firms please generate an IIROC Advisor Report. Employee benefits and pension consulting services, Mortgage lending services, and insurance products and services are provided through O’Farrell Financial Services Inc. (“OFSI”). OFSI is an independent company unrelated to ACM and AFM. For further Assante Wealth Management important legal and compliance disclosure, please visit www.assante.com/legal For more information on our privacy policy, please visit http://www.assante.com/privacy-policy www.cipf.ca https://www.ciro.ca/ © 2023 | All Rights Reserved