We want to take the opportunity to wish you a Happy New Year from your CrossPoint Financial Team. COVID is very much still a force in all of our lives which makes all things a little more challenging, but hopefully, this will pass soon, and we can get back to a level of normalcy that we all need. After a couple of great market return years, the new year has started with a level of volatility. This is a result of the Federal Reserve in the states slowing the easy monetary policy and inflation concerns.

Thank you for your continued trust in us. We’re always watching and thinking about your investments with the appropriate level of diligence, commitment, and care. If you need anything, please reach out.

December 2021

Ending on a High Note

Equity markets showed strength in December, including the S&P 500 which saw returns of 4.36% as hospitalizations from the COVID‐19 Omicron variant appeared to be fewer than expected. Industrial commodities, the US dollar, and Euro all saw encouraging uptakes in value, recovering from weak returns in the prior month.

Oil prices surged the most since 2009 as high vaccination rates and economic reopening spurred global consumption while production remains moderate. Over the year, West Texas Intermediate and Brent Crude gained 55% and 50%, respectively. Production disruptions in countries such as Ecuador, Libya, and Nigeria coupled with the expectation of decreased levels of crude oil inventory in this U.S. supports the price appreciation.

Caterpillar Inc., Chevron Co., and BNSF Railway Co., a subsidiary of Berkshire Hathaway Inc., agreed on an initiative to manufacture a prototype hydrogen fuel cell locomotive with the intent to reduce carbon emissions. The locomotive will be developed by Caterpillar, powered by Chevron, and be demonstrated on BNSF rails. Berkshire B‐Class shares rose by 8.72% on the announcement.

Nutrien Ltd. shares rose 14% in December, prior to the announcement that CEO Mayo Schmidt will be stepping down. Mr. Schmidt had held the position for only 8 months, causing concern for investors. Ken Seitz, who has been leading the potash division, will be taking his place.

As 2021 ended, we capped off a year where financial markets saw all‐time highs in many areas. Moving into 2022, we maintain a high conviction on our model positions as business and household balance sheets remain financially sound amid higher inflation expectations and central bank policy tightening. Barring a policy misstep or black swan event, we should expect moderate equity returns through the new year.

Portfolio Contributors

• Nutrien gained 14% as materials picked up with global demand.
• Procter & Gamble reached new all‐time highs after gaining 11.7%.

Portfolio Detractors

• iShares Global Clean Energy slid 7% during the month after California introduced restrictions against residential solar usage
• ARK Innovation shares fell 4.1% as the Federal Reserve communicated a more hawkish stance than expected

All returns are for the reported month and in local‐currency.
All data sourced from SIACharts and FACTSET.

Proxy funds used for benchmark indexes:

• Canadian Universe Bond Index: iShares Canadian Universe Bond Index EFT (XBB.TO)
• MSCI World Index (CAD): iShares MSCI World Index EFT (XWD.TO)