Welcoming Summer: A Mid-Year Financial Update
Dear Friends, Clients, and Fellow Investors,
I hope this newsletter finds you well and that you are enjoying the start of summer. Whether you’re spending time at the lake, on the golf course, at the job site, or simply enjoying some well-deserved family time, I hope things are going well for you and your family.
If the news headlines have felt a little exhausting lately, you’re not alone. One day it’s tariffs, the next it’s interest rates, then inflation, then geopolitical tensions. Despite the constant stream of headlines, markets have remained remarkably resilient.
Markets Continue Higher Despite Ongoing Uncertainty
Markets moved higher in May, driven by strong corporate earnings and continued enthusiasm around technology and artificial intelligence. The U.S. stock market reached new highs despite ongoing concerns surrounding inflation, interest rates, and global conflicts.
While a relatively small group of large technology companies continues to drive much of the market’s gains, corporate earnings remain healthy and supportive of long-term growth.
Energy prices moved higher during the month as tensions increased in the Middle East before easing later on. These events serve as a reminder that inflation pressures can return quickly when geopolitical events disrupt global supply chains.
Central banks, including the U.S. Federal Reserve and the Bank of Canada, continue to take a cautious approach. The Bank of Canada held its policy rate unchanged at 2.25% this morning, signalling that it remains focused on keeping inflation under control before considering further rate cuts.
What About Canada?
Canada’s first quarter GDP numbers came in weaker than expected, but we do not believe Canada is currently in recession territory.
The economy continues to face challenges from trade uncertainty, higher borrowing costs, and slower business investment. However, overall conditions remain relatively stable. For business owners and investors alike, this reinforces the importance of focusing on the factors we can control and maintaining a long-term perspective.
Offence Sells Tickets. Defence Wins Championships.
Legendary football coach Bear Bryant once said, “Offence sells tickets, but defence wins championships.”
Investing is much the same. While everyone enjoys hearing about the latest hot stock or AI breakthrough, long-term success usually comes from balancing growth opportunities with a strong defensive foundation.
Our goal is not simply to chase returns. It is to help build a plan that allows you to participate in growth while still being able to sleep at night when markets become turbulent.
Looking Ahead
As we move into the summer months, investors will continue watching developments in the Middle East, interest rate decisions, and ongoing trade discussions between Canada, the United States, and Mexico.
While these events may create periods of short term volatility, our focus remains on helping clients stay disciplined, diversified, and focused on their long-term goals rather than reacting to every headline.
After all, successful investing is usually far less about predicting the next headline and far more about sticking to a well-thought-out plan through all of them.
Thank you, as always, for the trust you place in me and Maccabee Financial. It is a privilege to work with you and your families.
Warm regards,
David Dodgson
Maccabee Financial Inc.
