As we hang the lights and head into the final stretch of the year, it’s a good moment to reflect on 2025.

Early in the year, markets were rattled by tariff headlines and political uncertainty following the U.S. election. For many investors, the instinct was to step aside and move to cash. In hindsight, that reaction would have been costly. Despite the noise, markets have once again reminded us of a simple truth: over time, they tend to move up.

2025 is the perfect example of why we should stay invested, be diversified, and avoid the noise and the short-term headlines. Because once you step out of the market, getting back in is hard – especially if you’re waiting for the “perfect” pullback that often never comes.

2026

The rotation that we talked about last week is continuing to happen this week, especially with commodities. This bodes well for places like Canada whose economy is directly correlated with commodity prices. You have heard us reference Newton’s First Law before, “An object in motion stays in motion at the same speed and in the same direction until acted upon”. Commodities appear to be following Newton’s first law and the forces that are currently in play appear to be adding fuel to the fire. Elevated inflation, currency volatility, and geopolitical uncertainty are making commodities look more attractive both as an investment and as a diversification or hedge against a potentially falling US dollar.

Without a doubt, 2026 is shaping up to be another volatile year with lots of surprises. We are looking forward to the new technology, the geopolitical uncertainty and the unconventional administration in the US. Well we understand that most people don’t like volatility we realize that volatility is the price of admission for long term returns and discipline is the gift that keeps us focused.

I've also included a piece from our CIBC Economics team entitled "Out of the darkness and into the fog".

As always, if you have any questions, please feel free to give us a call at any time.

Have a great weekend.

Milan