Market update

After several months of uncertainty and concerning news headlines, stocks have rebounded, supported by continued economic resilience and optimism around growth. Encouragingly, Canada’s labour market showed surprising strength in July, with employment increasing by 75,000 jobs and the unemployment rate declining. While it may be too early to call this a definitive recovery, these numbers suggest the Canadian economy continues to have some momentum.

What we’re seeing in stocks and bonds

RBC’s latest market commentary highlights how higher bond yields have changed the investment landscape. While rising yields can create short-term challenges for existing bond holdings, they also mean investors can now earn more income from new fixed-income investments than they could when rates were much lower. As a result, the risk-and-reward profile of fixed income has become more attractive.

This is a good reminder that market movements can create opportunities as well as risks, but identifying those opportunities requires a thoughtful, long-term approach.

Additionally, equities continue to have long-term potential; however, much of that optimism is already reflected in current valuations, particularly among technology and semiconductor companies.

Ongoing market discussions

As we’ve seen over the last several months, the excitement around Artificial Intelligence continues to support markets. However, investors are beginning to look beyond revenue and earnings. 

Major technology companies are spending significantly on AI infrastructure, pushing capital expenditures higher and free cash flow lower. The bigger question is whether those investments will ultimately generate long-term returns. 

The rise of AI also raises an important discussion about increased cybersecurity risks, as attacks are already rising in sectors such as supply chains and healthcare. This is something many people note as concern for our future, and is a topic I’m sure we will continue to see develop as we move through the year. 

Overall, our economic growth remains resilient here in Canada, but inflation, interest rates, AI investment and emerging risks are all factors worth watching. 

What this means for investors

Although market headlines can change quickly, it doesn’t mean your financial plan should. As always, this is a good reminder that investing isn’t about predicting which headline comes next, because that will never be possible. Rather, it’s about ensuring we have portfolios built to navigate the headlines, no matter what they look like. As we enter the last few months of 2026, August is a good time to step back and ask whether your portfolio is still aligned with your overall goals.

Falling back into routine: August considerations 

As our summer months slowly come to a close (no matter how much we wish that weren’t the case), now is a good time to get ahead before the busyness of fall sets in. 

Before September arrives, here are some of the top financial check-ins you can do now: 

1. Revisit your goals

For many, summer can naturally get us out of focus on goals and bigger picture things, as we soak up every ounce of this time of year. With that, spending can also naturally become more than originally anticipated. Now is a good time to review whether your priorities have changed since the beginning of the year and how you would like to allocate your money in the coming months.

2. Check your cash flow

September often brings a return to routines, activities, tuition, and other expenses. Take a look at what's coming and make sure your cash flow is prepared before year-end and if you still feel on track with your overall goals. 

3. Review your retirement progress

Are you on track with your savings? If you’re approaching retirement, this is also a good time to revisit your expected income sources, including CPP, OAS, pensions and personal investments. For 2026, the maximum CPP retirement pension at age 65 is $1,507.65 per month, while the average new CPP retirement pension at 65 is considerably lower at $877.01 per month. 

This is a good reminder that government benefits are only one piece of the retirement picture, and as an Investment and Wealth Advisor supporting my clients in these areas and more every day, I’m here to help ensure you’re well prepared and feel confident in your plan moving forward. 

4. Look ahead to year-end tax planning 

If you’ve found yourself saying “this week has flown by” at least once this summer, then it’s safe to say December will be here before we even realize. If you have a non-registered investment account, a business, charitable giving plans or other financial considerations, starting the conversation now gives you more time to make thoughtful decisions for tax planning.

5. Make time for the conversations you've been putting off

As we approach fall, for many of us, shifting our wardrobes and routines from what’s right in summer to what’s necessary as the colder months approach, can be something we put off. But just like having important tough conversations, it’s imperative that we do it. 

Whether it's a discussion around retirement, an aging parent, your children's financial future or your estate plan, now is as good a time as ever to start that conversation. 

These are a handful of things you can do now to ensure you’re prepared as we enter the final stretch of 2026. And this is a reminder that just as the seasons shift, our lives will too, but with the right support, it doesn’t need to be something we fear. 

A final note

August has this way of resting between two seasons, as we enjoy the more carefree pace of summer, but with a busy, often more structured pace of September on the horizon.

Pausing to take in the remainder of summer is important. Pausing to consider our finances and our futures is equally worthwhile. 

If it’s been a while since you reviewed your plans or simply want to ensure you’re well prepared for what comes next, regardless of the season of life you’re in, I’d love to reconnect.

Wishing you all a happy, healthy and peaceful end of August. 

Chantal

Chantal McNeily, CIM, BACS | Investment and Wealth Advisor, RBC Wealth Management | RBC Dominion Securities | T. 705-734-4409 | C. 705-794-5197 | 11 Victoria St., Suite 100, Barrie ON, L4N 6T2 | www.chantalmcneily.com

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