Where to begin on this one...

Q2 was certainly eventful. Let’s start with the big news at home first; Canada elected a new Prime Minister, largely seen as the best candidate to navigate a looming “trade war.” That timing proved critical, as just days into the quarter, the U.S. government imposed sweeping tariffs on much of the globe in what they deemed as “Liberation Day.” As expected, markets responded with heightened volatility and fear.

What was less expected, however, was the reaction from Asia-Pacific nations, which responded by flooding the market with long-dated U.S. treasuries. This drove the U.S. dollar sharply lower, prompting the U.S. to pause tariffs for 90 days. Was this a win? It's debatable.

The much-touted promise of “90 trade deals in 90 days” has fallen flat. We're 90 days in and only three deals have been finalized, while a number of countries have instead received letters informing them of their new tariff rates. The pause, it seems, is officially over (or is it? Who knows…).

Remarkably, despite all the turbulence, global equity markets have posted gains this year, with Canada leading the charge. “Buy Canadian” appears to be paying off. While total returns are more muted than in recent years, and despite relentless headlines, markets continue to push forward. As we've consistently emphasized: “well run businesses will continue to prosper.” The market may be volatile, but long-term discipline and a level-headed approach will be rewarded.

As we move forward, we expect the news cycle to become chaotic once again with trade tensions taking center stage.

I’ll leave you with this thought: while the market dislikes uncertainty, it is always forward looking. As clarity begins to emerge on the trade front, the market will inevitably continue to move assets into these well run businesses that are able to deliver in any circumstance.

As always, thank you for placing your trust in our team. We’re here to discuss your portfolio and answer any questions or concerns you may have.

Phil