Our outlook on the markets from our June 2025 market commentary
As we enter the second half of 2025, the outlook remains constructive for both U.S. and Canadian equities—despite the noise that continues to dominate the headlines. Investor sentiment is turning more optimistic, underpinned by a resilient U.S. economy, stabilizing global conditions, and the growing likelihood of a policy pivot later in the year.
Markets are beginning to price in a positive resolution to ongoing tariff negotiations, with several bilateral agreements already in motion. This reduction in trade tension not only lowers risk premiums but also restores visibility for corporate earnings into year-end. Meanwhile, geopolitical tensions in the Middle East have eased, following a brokered ceasefire between Israel and Iran—removing one of the biggest short-term wildcards from the market’s radar.
Growth expectations are improving, inflation continues to cool, and while central banks remain cautious, the foundation is forming for potential rate cuts in the fall. Against this backdrop, we have reinstated our original S&P 500 target of 6,700, aligning with the renewed bullish stance of our Chief Equity Strategist, Brian Belski. Likewise, the TSX Composite’s return to the 28,500 target reflects growing strength in Canada’s energy, financial, and industrial sectors.
At MSB Wealth, we help our clients stay grounded by focusing on what matters—earnings, fundamentals, and thoughtful allocation—not the day-to-day distractions. For nervous investors, our advice remains timeless: volatility is the price of admission for long-term returns. Stick to the plan, stay diversified, and trust in disciplined guidance.
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