Given the evolution of domestic inflation, we expect the Bank of Canada ("BoC") to continue cutting its policy rate this year. However, barring a swift weakening of the economy, the BoC has stressed that rate cuts will materialize at a slower pace than the hikes they delivered in 2022 and 2023. Equity market returns remain positive year-to-date. While the U.S. market, and in particular technology-related names, are among the leaders, all S&P 500 Index sectors and many major equity markets are up this year. We believe that the equity market has a balanced return outlook.