It's been another exciting week in the markets. Taiwan and South Korea experienced some eye-popping swings as speculative trading in AI-related stocks continues to resemble a casino more than an investment market. It's a reminder that not every market behaves the same way. 

                                                                                 Source: LSEG. [KCI-SE] Daily Close. Data retrieved Jul 29, 2026.

Meanwhile, a much more important story has been unfolding in the U.S. Companies have been reporting another excellent earnings season, with profits continuing to surprise to the upside. At the end of the day, earnings are what drive long-term stock prices not the daily headlines.

             Source: Factset. Data as of Jul 27, 2026.

It's a good reminder that there's a difference between volatility and value. News, tariffs, geopolitical events, and investor emotions can move markets in the short term, but growing earnings are what build wealth over time.

As we head into the August long weekend, I hope you get the chance to relax and spend time with family and friends. The market will still be here on Tuesday – and chances are the headlines will have found something new to worry about.

I have also included a link to the latest podcast from our CIBC Economics team entitled “AI, inflation and the Central Bank dilemma”.

Have a safe and enjoyable long weekend. Stay invested, enjoy the sunshine, and leave the market watching to us.

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

Milan