Boxing Day Comes to Markets
Any seasoned bargain hunter knows the best deals often appear just after the holidays, when unwanted inventory is marked down because, by spring, no one is looking for fuzzy socks or eggnog candles.
Markets saw a similar dynamic this January. Investors stepped in to purchase value stocks — companies trading at meaningful discounts to faster-growing technology names and premium global franchises.
In January, the Vanguard Value Index ETF rose 4.6%, led by commodity, mining, and financial stocks. Growth stocks, represented by the Vanguard Growth Index ETF, fell just over 1%, resulting in a notable 6% outperformance by value stocks.
International markets, particularly Europe and Japan, tend to carry more value characteristics, so their outperformance was not surprising, especially with the weakening U.S. dollar providing an additional tailwind.
Figure 1. Value outperformed Growth by 6% in January 2026
Source: Murray Wealth Group, Refinitiv Workspace
At MWG, we look for value in every investment we make, whether in a high-growth technology leader, a European discount retailer or a dominant Canadian airline. After all, if beauty lies in the eye of the beholder, value lies in the eye of the shareholder.
Market Update
North American equity markets posted modest gains in January 2026, with the S&P 500 up 1.4% year-to-date, outperforming the TSX Composite’s 0.7% gain.
Commodity markets drove much of the month’s volatility. Gold surged 9.0% YTD to $4,714/oz, fueled by speculative demand and geopolitical hedging. Meanwhile, WTI crude oil rose 13.6% YTD, closing at $65.21 per barrel, supported by supply disruptions from Winter Storm Fern and renewed tensions in the Middle East.
Month-end figures mask the turbulence beneath the surface. Gold briefly peaked near US$5,500 late in the month, while oil prices dipped mid-January amid renewed U.S. political involvement in Venezuela.
Meanwhile, fixed-income markets remained largely unchanged through the month.
MWG Global Equity Growth Fund Performance
The MWG Global Equity Growth Fund Series O fell 0.8% in January, slightly trailing its benchmark’s -1.0% increase.
Top performers:
- Moderna (+48%)
- Hudbay (+18%)
- Major Drilling (+16%)
Bottom performers:
- lululemon (-17%)
- LVMH (-15%)
- UnitedHealth (-14%)
Source: Murray Wealth Group, Refinitiv Workspace
Portfolio Managers’ Summary
No portfolio changes were made in January.
We may sound repetitive, but our outlook remains unchanged: we expect continued strength in the AI economy through 2026.
Earnings from the four dominant technology companies (Microsoft, Alphabet/Google, Amazon and Meta) continue to show above-average revenue and earnings growth despite another surge in capital spending, projected to total $650 billion combined in 2026.
While this level of investment has unsettled some investors, we continue to highlight two important considerations.
First, these companies have spent over a decade building the backbone of enterprise and consumer computing. AI represents a significant evolution, but fundamentally, this remains a data and infrastructure business.
- Microsoft effectively runs the computing environments of millions of small and medium-sized businesses, from interface to storage to cybersecurity.
- Amazon’s AWS S3 now stores over 500 trillion objects. Statistically speaking, if you stored 10,000 objects in S3, you might lose one every ten million years.
- Google operates a private global fiber network spanning 4.8 million miles, including 35 subsea cables connecting even remote hubs such as Fiji, Christmas Island, and Guam.
Second, these companies are also among the largest internal users of AI services. Over time, productivity gains should offset higher capital expenditures, supporting margin expansion.
MWG Income Growth Fund Performance
The MWG Income Growth Fund Series O rose 4.9% in January, outperforming its benchmark’s 0.7% increase.
Top Performers:
- Exchange Income (+16%)
- Rio Tinto (+12%)
- PHX Energy Service (+12%)
Bottom Performers:
- Opera (-11%)
- Power Corp (-5%)
- Flagship Communities REIT (-2%)
Source: Murray Wealth Group, Refinitiv Workspace
Portfolio Managers’ Summary
No changes were made to the portfolio in January.
Value stocks were clearly back in favour during the month, and the Income Growth Fund’s holdings largely fall into this category.
Canadian energy stocks rebounded following early concerns around potential Venezuelan oversupply. As we discussed on BNN, while increased Venezuelan production is possible, achieving it would require major political alignment, significant U.S. involvement and billions in incremental investment.
Despite a relatively muted oil price environment, the sector has rallied back toward recent highs — a reminder that markets often price future expectations well ahead of present conditions.
