July Newsletter

The month of July continued to bring on mixed results across major indexes. As the war in Iran started to settle down under a preliminary peace agreement, oil prices had continued to slide and markets began to slowly rise. However when the agreement fell apart and oil prices spiked, the markets responded with selling. The S&P 500 finished the month flat leaving it positive for 2026 at 9.41% gain. The NASDAQ tried to rally in the last week of the month, but still ended down 3.2% for July, trimming year to date gains to 9.17%. In Toronto, the TSX posted a 1% gain for July, bumping it to 11.08% for 2026.

Some of the key information from this past month shows economic growth in the US slipping as GDP for the second quarter slipped to 1.5% from 2.1% in Q1 and inflation remaining above the 3% max target at 3.3% for the month. Canadian inflation data remains elevated with the higher oil prices at 2.8%, but in the expected range of 2-3% per year. Canadian GDP was up 0.3% for the month of May, continuing a recovery from the previous 2 quarters of negative growth.

Higher oil prices have, to no surprise, led to oil and gas companies reporting increases in their profits, as many have seen a doubling in profit margins over their 2025 numbers. Other popular sectors continue to show mixed results, as recent technology earnings are showing some strength (Microsoft) and some weakness (Meta), based on corporate decision making and spending practices.

One of the keys in the US is consumer spending, which continues to support the local economy and keep the GDP in the positive side. Imports into the US have spiked in Q2 as more conversations of trade wars and increased tariffs and uncertainty over the CUSMA trade agreement set into every day life.

For any Canadian travelling abroad this summer, you will notice our dollar not going as far as it did even just last spring. The dollar has crashed with all the trade war speculation, and defies the normal tendency for it to strengthen when oil prices spike.

Have a safe and happy Civic Holiday weekend!

Saving money is a habit that is best taught to young adults and teenagers. The earlier you start to build good habits, the likelier it is for those habits to stick through your adult years. When students save from their part time or summer jobs, and transition into full time employment they have the foundation to build on. As their incomes rise, learning how to take advantage of TFSA and RRSP savings strategies to maximize their benefits as they file tax returns each year.

CPP is a pension plan that all Canadians (except in Quebec) pay into during their working years. The pension contributions are matched by your employer up to a maximum each year. A very popular question is when is it right to start your Canada Pension Plan payments? The video here goes through some basic calculations on what the retirement income can look like.