It’s been another interesting stretch in the markets since our last update.

After a strong start to the year, March was much more volatile, and April has continued that pattern with big swings in both directions. We’ve seen markets drop quickly and then rebound just as fast, which can feel unsettling when you’re watching it day to day.

Where are markets now (roughly year to date)?

• Canada (TSX): still up about 3% for the year despite a tough March
• U.S. (S&P 500): slightly down year to date after recent volatility
• International markets: generally modestly positive, with Europe and Japan holding up better earlier in the year

So overall, it’s a bit of a mixed picture. Canada has held up better, while the U.S. has been bumpier.

Why all the volatility?

There isn’t just one reason right now. It’s a combination of a few big themes:

1. Geopolitics and oil prices
Ongoing tensions in the Middle East have pushed oil prices higher at times, which creates uncertainty for markets. When oil spikes, markets often react quickly, especially in the U.S.

2. Tariffs and global trade
We’re still seeing the ripple effects from last year’s “Liberation Day” tariffs. Trade uncertainty tends to create stop and start markets, as companies and investors adjust expectations.

3. Interest rates and inflation
Inflation is still not fully under control, and investors are trying to figure out when and how much central banks will cut rates. That uncertainty alone can cause markets to move around quite a bit.

4. Technical factors (this one is less obvious)
Some large institutional strategies actually buy and sell automatically based on volatility. In March, these strategies amplified the downturn by selling into weakness, which made the drop feel worse than it otherwise might have been.

The big picture

Even though markets feel choppy right now, a few important things are still true:

• Companies are still making money
• Economic growth is slow but positive
• Interest rates are expected to trend down over time

That’s why you’re seeing markets recover quickly after dips. For example, the S&P 500 recently had one of its strongest short-term rebounds in the past year after a rough patch.

What this means for you

This is a very normal part of investing, even if it doesn’t feel like it in the moment.

Markets don’t go up in a straight line. They move in fits and starts, especially when there is uncertainty in the world. The key is staying focused on the long term and not reacting to short term noise.

If anything, periods like this are a good reminder of why we diversify and stick to a plan.

As always, if you have questions or just want to talk it through, I’m here.

Source: www.bloomberg.com