Market Outlook - July 2025

With both the S&P 500 and TSX Composite entering August at record highs, our original year-end targets of 6,700 and 28,500, respectively, remain firmly in place. The potential for rate cuts later this year, coupled with low and stable inflation, sets a supportive backdrop for equity markets. The ongoing tariff agreements, while not without controversy, are generating billions in new revenue for the U.S. economy, and corporate earnings across North America are showing a welcome trend toward greater consistency.

That said, we believe this optimism should be tempered with discipline. Markets are being driven in part by momentum and sentiment, both of which can shift quickly if macroeconomic or geopolitical conditions deteriorate. The remainder of 2025 may present bouts of volatility, but for well-positioned, resilient companies, the environment remains favourable.

Our approach continues to focus on quality, resilience, and selective opportunity, ensuring that we participate in the upside while maintaining the flexibility to adjust if the winds change. In this environment, patience and discipline will be just as valuable as optimism.

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