Welcome to Our Monthly Newsletter - Pharus Perspectives!

The leaves are turning, and so are the markets—fast. With policy shifts, global jitters, and valuations that make even seasoned investors raise an eyebrow, staying informed isn’t just smart—it’s essential.

What You’ll Discover Inside

• North American Equities: What’s next after the recent rally? We break down the momentum, the risks, and where opportunity might be hiding.

• Year-End Strategy Session: From tax planning tips to business succession moves, we’ve got your fall checklist to help you finish strong and set up for success in 2026.

• Liquid Alternatives & Beyond: Curious about alternative assets? We’ll show you how these flexible investments can add resilience and spice to your portfolio.

• Financial Brain-Teaser: A fun riddle to keep your mind sharp and your investing instincts sharper.

So grab your pumpkin spice latte (or your spreadsheet), and let’s navigate October’s financial landscape together—with clarity, confidence, and maybe a little caffeine.

Monthly World Markets Report

Equities in 2025: So Far So Good. What Now?

Summary

• Market performance: Year-to-date, the TSX is up ~21.4% and the S&P 500 is up ~13.7; 10 of 11 sectors in each index show positive price returns, indicating broad market breadth.

• Canada drivers: Materials (precious metals/mining) lead performance, boosted by a strong rise in gold prices; gold stocks now represent over 10% of the TSX.

• U.S. drivers: Technology leadership continues, powered by massive corporate spending on generative A.I. infrastructure and rollout of large language models.

• Macroeconomic tailwinds: September rate cuts from the Bank of Canada and the Fed provide central-bank support for equities and reduce interest-rate pressure on valuations.

• Macroeconomic headwinds: Increased U.S. federal debt, tariffs announced by President Trump and a sharp downward revision in U.S. job creation raise risks to growth and consumer demand.

• Sector implications: Rate-sensitive sectors (financials, utilities, pipelines, telecom, real estate) benefit from lower rates; this effect is proportionally larger for the TSX than for the S&P.

• Relative outlook: Canada may finish 2025 ahead of the U.S. if gold and rate-sensitive sectors stay strong; U.S. equities could reclaim leadership in 2026 if the consumer remains resilient and A.I. spending persists.

Key Takeaways

• What to remember: Broad market breadth and central-bank easing explain strong 2025 returns, but meaningful fiscal and geopolitical risks remain.

• What to try: Increase exposure to interest-rate sensitive Canadian sectors and selective gold/mining names while keeping a tactical position in U.S. A.I.-driven technology leaders.

• What to watch: U.S. consumer spending and labor-market signals, further tariff pass-through to prices, trajectory of gold, and corporate A.I. spending into 2026.

Monthly Performance Update

 

Market Performance- Sep 30, 2025.
Index	1 Month	3 Months		YTD		1-Year		3-Year		5-Year
S&P TSX	5.4%	12.5%	23.9%		28.6%		21.3%		16.7%
S&P 500	3.7%	8.1%	14.8%		17.6%		24.9%		16.5%
NASDAQ	5.60%	11.2%	17.3%		24.6%		28.9%		15.2%
MSCI EAFE	2.0%	4.8%	25.7%		15.6%		22.3%		11.7%
MSCI Emerg. Mkts	7.2%	10.9%	28.2%		18.2%		18.8%		7.5%
MSCI World	3.1%	7.0%	16.2%		15.7%		21.9%		12.7%
FTSE Canada Bond Univ.	1.90%	1.50%	3.0%		2.90%		4.57%		-0.24%

 

Source: Click Here for Monthly World Market Report.

Observed Trends from Our Research Models

Recent market conditions have prompted several notable trends in how investment portfolios are being managed. These trends reflect a focus on balancing risk and return in an uncertain environment:

• Modest Equity Underweights and Fixed Income Overweights: Many portfolios are reflecting a slight reduction in equity exposure due to profit-taking, with a corresponding increase in fixed income allocations.

• Emphasis on Active Management: There is a growing tendency to leverage active management strategies, aiming to take advantage of market inefficiencies and unexpected corporate earnings results.

• Short-duration exposure cautious: One major central bank continues to tighten while others are showing less room to cut, creating uneven front-end dynamics.

• Alternatives and hybrids pared back modestly: Taking a slightly more selective stance amid valuation and liquidity considerations.

These observed trends reflect the dynamic nature of market conditions and the diverse strategies being explored to navigate them. As always, individual circumstances and objectives should guide any investment decisions.

Financial Planning Feature

Keeping the Business in the Family: Succession Strategies for Generational Wealth Transfer

Succession planning is more than just passing on a business—it’s about preserving a legacy, protecting family harmony, and ensuring financial sustainability for future generations. The Sopuch family’s journey from father to son to grandson offers a compelling example of how early planning, expert guidance, and open communication can make all the difference.

Key Insights for Business Owners

• Start Early, Plan Ahead

  • Begin succession conversations well before retirement—ideally 10 years in advance.

  • Early planning allows time to align family expectations and prepare successors.

• Lean on Trusted Advisors

  • Financial advisors can guide ownership transitions, beneficiary arrangements, and liquidity planning.

  • They also help educate the next generation and facilitate sensitive family discussions.

• Balance Family Dynamics Thoughtfully

  • Consider fairness when children have different career paths—some involved in the business, others not.

  • Transparency and early conversations help avoid future conflict.

• Adapt to New Opportunities

  • Take advantage of evolving tax rules, like the increased lifetime capital gains exemption ($1.25M).

  • Explore new tools like the Canadian Entrepreneurs’ Incentive (CEI) and Employee Ownership Trusts (EOTs), which offer significant tax benefits.

• Don’t Go It Alone

  • With over $2 trillion in business assets expected to change hands in Canada over the next decade, expert advice is essential.

  • Advisors bring experience, reduce stress, and help optimize outcomes for families and businesses alike.

Source: Click Here for the Article.

CIBC Smart Advice Feature

Smart Tax Strategies: The Key to Preserving Wealth

In a recent episode of Smart Advice, Carissa Lucreziano sat down with Jamie Golombek, Managing Director of Tax and Estate Planning at CIBC, to unpack how Canadians can use tax planning to protect and grow their wealth. From capital gains and foreign property ownership to estate planning and year-end tax tips, this conversation offered practical insights for anyone serious about financial security.

Summary

• Tax Planning Is Wealth Planning

  • Wealth isn’t just about income—it’s about retention.

  • Smart tax strategies align with long-term goals and help build financial resilience.

• Federal Budget & Tax Policy Outlook

  • Anticipated fall budget may bring increased taxes for high-income earners.

  • Recent tax cuts for the lowest bracket came with reduced non-refundable credits, limiting their impact.

  • Possible changes to principal residence exemptions are being watched closely.

• Capital Gains Inclusion Rate: What Happened

  • Proposed increase from 50% to 66.7% inclusion rate was cancelled.

  • Surge in asset sales occurred before the June 25 deadline.

  • Current 50% rate remains favorable for entrepreneurs and investors.

• Strategic Investment Advice

  • Hold capital-appreciating assets in non-registered accounts to benefit from lower tax rates.

  • Real estate profits (outside principal residence) are taxed at ~26% in Ontario—lower than rental income.

  • Investors should leverage the current inclusion rate while it lasts.

• Foreign Property Ownership: Tax Implications

  • Selling U.S. property triggers tax in both the U.S. and Canada.

  • Canadian residents can claim a foreign tax credit—but currency fluctuations may reduce its effectiveness.

  • Gains must be reported in Canadian dollars, potentially inflating the taxable amount due to exchange rate shifts.

  • U.S. estate tax may apply if the property is owned at death—specialized cross-border advice is essential.

• Estate Planning & Intergenerational Wealth Transfer

  • Canada is undergoing a major generational wealth shift.

  • Emotional assets like cottages require thoughtful planning and family discussions.

  • Key questions: Do heirs want the property? Can they afford it? How will it be shared?

  • Ownership structures (e.g., joint ownership vs. family trusts) have tax and control implications.

  • Trusts trigger a 21-year deemed disposition rule—timing matters.

  • Life insurance can help equalize inheritance or cover tax liabilities on death.

  • Legal and tax advice is essential to ensure smooth execution through wills and estate plans.

• Year-End Tax Planning Tips

  • Consider tax-loss selling to offset gains or carry losses back up to 3 years.

  • Contribute to a First Home Savings Account before year-end to maximize annual room.

  • Make charitable donations by December 31—donating appreciated securities avoids capital gains tax.

  • Business owners should review compensation strategies (salary vs. dividends).

  • Speak with advisors to uncover tax-saving opportunities year-round.

Key Takeaways:

• Tax strategy is a cornerstone of wealth preservation—especially amid policy uncertainty.

• The cancellation of the capital gains inclusion rate hike offers a window of opportunity for investors.

• Real estate and portfolio structuring should be approached with tax efficiency in mind.

• Canadians investing abroad must understand cross-border tax implications to avoid costly mistakes.

• Estate planning should combine emotional sensitivity with financial foresight to ensure smooth asset transfer.

• Year-end is a prime time to act—but tax planning should be ongoing, not seasonal.

 

For more insights, visit jamiegolombek.com or explore CIBC’s Smart Advice hub. If this sparked ideas for your own financial journey, share it with your network and subscribe to Smart Advice on your favorite podcast platform.

 

Source: Click Here for the Article.

Financial Solution Feature

In this section, we educate the reader on different financial solutions. We discuss and elaborate each idea over a couple monthly editions. This section is not to be taken as specific advice.

Investment Feature: Exploring Alternative Assets

When most people think of investing, they picture stocks and bonds—traditional assets that form the backbone of many portfolios. But beyond these familiar choices lies a broader universe of opportunities: alternative assets.

What Are Alternative Assets?

Alternative assets include investments outside the conventional stock and bond markets. These can range from:

• Commodities: Gold, oil, agricultural products

• Real Estate: Commercial buildings, rental units

• Infrastructure: Toll roads, airports, energy facilities

• Currencies: USD, EUR, GBP, JPY

• Private Equity & Debt: Non-public companies and specialized lending

These assets often behave differently than traditional investments, offering unique return patterns and lower correlation to market movements. That means they don’t always rise or fall in tandem with stocks and bonds—making them powerful tools for diversification.

Why Consider Alternatives?

Incorporating alternative assets into your portfolio can offer several potential benefits:

• Improved Diversification: Reduces reliance on traditional market cycles

• Enhanced Risk-Adjusted Returns: Balances performance with volatility

• Inflation Protection: Real assets like infrastructure and real estate often hold value during inflationary periods

• Downside Resilience: May cushion your portfolio during market downturns

Infrastructure, for example, involves financing essential projects—like highways or energy grids—that generate stable, long-term cash flows. These investments are often tied to economic activity and can provide consistent returns even in turbulent markets.

How to Incorporate Alternatives?

Clients can gain exposure to alternative assets through:

• ETFs and Mutual Funds focused on commodities, real estate, or infrastructure

• Direct Investments in rental properties or private equity funds

• Managed Portfolios that include alternative allocations tailored to risk tolerance and goals

It’s important to work with a financial advisor to determine the right mix and ensure these assets complement your broader investment strategy.

Key Takeaway

• Alternative assets offer diversification beyond stocks and bonds

• They can improve portfolio resilience and reduce volatility

• Exposure can be gained through funds, direct investments, or managed strategies

• Infrastructure and real assets may provide inflation protection and stable returns

Fun Stuff

Finance Funnies: Because Even Money Needs a Laugh

We know finance can be serious business—but who says it can’t be fun too? This month, we share a money-themed joke to lighten the mood and keep your financial spirits high.

 

This Month’s Chuckle:

Why don’t stock market experts ever read novels? Because the only numbers they care about are in the indexes!

 

Got a favorite finance joke? Send it our way—yours might be featured next month!

 

To stay up to date on market events, news, and reports, follow Pharus Wealth Advisory Group on our Social Media Pages. For Financial Literacy and Planning, visit Pharus Resources, where we upload timely articles on Financial Planning and Financial Literacy Resources.

 

Click here to visit Pharus Resources.

 

Pharus Wealth Advisory Group

The Beacon to your Financial Journey

1623 Avenue Road, Toronto ON M5M 3X8

Phone: 416 861-2460

Email: mailbox.pharuswealth@cibc.com

Website: www.pharuswealth.ca