The first half of 2026 has been a reminder that markets rarely move in a straight line.
We've continued to see headlines about tariffs, geopolitical tensions, government debt, and changing interest rate expectations. While these stories can make the markets feel uncertain, they're also a good reminder that uncertainty is normal. There's always something for investors to worry about.
Fortunately, markets have continued to look beyond the headlines. Corporate earnings have generally remained resilient, inflation has continued to ease from its highs, and investors are increasingly focused on long term economic growth rather than day to day news.
One of the biggest themes this year has been the broadening of market leadership. Rather than only a handful of large technology companies driving returns, we've seen participation expand into financials, industrials, healthcare, infrastructure, and international markets. That's exactly why diversification matters. We never know in advance which sectors or countries will lead next, so owning a well diversified portfolio continues to be one of the best ways to manage risk while participating in long term growth.
Interest rates remain an important story. While central banks are becoming less willing to signal exactly when rates may change, they continue to base decisions on incoming economic data. Markets will likely remain sensitive to inflation and employment reports over the coming months, so some short term volatility should be expected.
As always, our focus isn't on reacting to headlines. It's on building portfolios that can weather different market environments while helping you achieve your long term goals. History has shown that patience, discipline, and staying invested have been far more rewarding than trying to predict the next market move.
Market at a Glance:
Canadian Markets
• The S&P/TSX Composite Index finished the second quarter up
6.4%, marking its
eighth consecutive quarter of gains, the longest winning streak in nearly 30 years. Financials and technology have been key contributors.
U.S. Markets
• U.S. stocks continue to be supported by strong corporate earnings and expanding market leadership beyond the largest technology companies. Investors remain focused on economic growth and interest rate expectations.
Interest Rates
• Interest rates remain one of the biggest drivers of markets. Investors continue to watch inflation and employment data closely as central banks evaluate their next moves.
Canada's Economy
• Manufacturing continues to expand, although service sector activity softened in June as businesses faced ongoing geopolitical uncertainty and higher costs.
What We're Watching
• Inflation trends
• Interest rate decisions
• Corporate earnings season
• Global trade negotiations and geopolitical developments
Year To Date Returns:
| Market | YTD Returns |
|---|---|
| TSX/S&P 500 (Canada) | 12.7% |
| S&P 500 (US) | 10.9% |
| MSCI EAFE (Europe and Asia) | 13.2% |
| Canadian Bonds | 1% |
Source: Ycharts
The headlines change every week, but our investment philosophy doesn't.
Rather than trying to predict the next market move, we continue to focus on building diversified portfolios of quality investments that can perform through a variety of market conditions. While volatility can create uncertainty in the short term, history has consistently rewarded disciplined investors who stay focused on their long term financial goals.
As always, if your goals or circumstances have changed, please let us know. Financial planning isn't just about your investments. It's about making sure your entire financial picture continues to move in the right direction.
If you have any questions about your portfolio or your financial plan, please don't hesitate to reach out. We're always happy to chat.
Source: bloomberg.com
