Market Outlook - August 2025

As we turn our gaze forward, there's genuine reason for calm, considered optimism. Growth may be stabilizing, but this is not a sign to retreat—it’s an opportunity to lean into quality. As Brian Belski reminds us, “Quality is back in favour. We’re on the hunt for companies that can exhibit consistent earnings growth with improving operating metrics such as return on assets, on invested capital and return on equity”. With companies demonstrating reliable fundamentals, investors can find steady ground amid shifting momentum.

Across the U.S., the market environment is evolving in a way that favors thoughtful selection over blanket exposure. Smaller- and mid-cap firms with solid fundamentals are stepping into view as quality opportunities—an important reminder that compelling returns are not confined to mega-cap giants. The underlying thesis is clear: with dispersion widening and fundamentals regaining importance, disciplined stock-picking rooted in quality metrics provides a pathway to both resilience and growth.

Closer to home, Canada’s equity landscape is entering a more normalized earnings phase. When growth begins to moderate, companies showcasing stable profits and positive earnings revisions shine. Overlaying quality alongside cyclical considerations enables investors to participate in the upside while reinforcing portfolio durability. At MSB Wealth, our message is steady: stay invested, remain grounded in quality-led fundamentals, and let disciplined decision-making guide you through this promising next chapter.

If you would like to subscribe to our monthly commentary, please email us at msbwealth@nbpcd.com