October 2025
Brent Joyce, CFA, Chief Investment Strategist
“There are two ways of spreading light: to be the candle or the mirror that reflects it.”
– Vesalius in Zante (1902), Edith Wharton, American writer and poet, first female recipient of the Pulitzer Prize for Fiction
Looking at the impressive returns from capital markets in the third quarter, sell in May would have been bad advice (it’s never good advice). Summer markets were definitely not mired in the doldrums.
A few adages are worth remembering: equity markets climb a wall of worry, and they lead earnings, which, in turn, lead the economy.
In Q3, equity markets climbed a wall of worry and negative headlines dominated. Yet, earnings growth (the most potent and healthy fundamental driver of equity market advances) propelled stocks higher. These earnings surprises were global and substantial. They defied the widespread beaten-down sentiment generated by the chaos of shifting and sometimes confusing economic policy (tariffs, industrial policy, legal challenges, immigration changes, and Federal Reserve personnel shake-ups).
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Do not hesitate to give either of us a call at 416 359-7565 or 416-359-7564 or email Sharon Kubicek or Alisa Carli if you have any questions respecting your portfolio and the prevailing investment, economic and political issues at play today.