Staying Grounded Through Changing July Markets and Summer Decisions

Chantal McNeily

Investment & Wealth Advisor

July 14, 2026

Market Update

Markets have continued to demonstrate resilience throughout the year, despite the complicated mix of geopolitical uncertainty, inflation concerns, and changing expectations around interest rates. And while headlines can often make markets feel unpredictable, the broader economic picture includes a handful of positive factors, such as steady employment, resilient consumer activity, and continued corporate earnings growth. There continue to be several themes shaping the market this summer, which include:

1. Geopolitical Uncertainty

Earlier this year, energy markets were closely tied to developments in the Middle East, with concerns around supply disruptions contributing to higher oil prices and renewed inflation worries. Recent progress toward easing tensions has helped reduce some of the pressure on energy markets. Lower oil prices provide some relief for consumers and businesses, especially as energy costs influence everything from transportation to everyday goods. That said, markets continue to monitor the situation closely, and even when major events stabilize, the economic impacts can take time to materialize.

It’s fair to say that markets can often respond quickly to headlines, but that doesn’t mean you have to. It’s important to ensure your decisions are based on long-term priorities rather than short-term reactions.

2. AI Continues to Shape Investment Opportunities

Artificial Intelligence remains one of the most influential themes driving markets today. Investment in AI infrastructure continues to expand as companies seek ways to improve productivity and efficiency. We see it everywhere we look, and although the future of AI is uncertain, the present opportunities are worth exploring.

This rise in AI has strengthened certain areas of the market, but it has also increased concentration in some sectors. And so the question for investors is not whether AI matters, but what it means to participate in this long-term innovation while ensuring portfolios remain balanced.

3. Economic Resilience

Despite ongoing uncertainty, economic conditions have remained more stable than many expected, with employment levels, consumer activity, and corporate earnings continuing to provide support. At the same time, inflation has lowered from previous peaks. While expectations for rapid rate cuts have shifted, higher bond yields have created more opportunities for fixed-income investors compared to recent years.

The current environment is a reminder that periods of growth are often followed by periods of adjustment, and uncertainty is a normal part of investing. We’ll never truly be able to predict how things will go, but with the right thoughtful measures in place that consider your priorities, resilience in the face of uncertainty is far more probable.

July Consideration: Are You Taking Advantage of Tax Planning Opportunities?

It’s safe to say that when many people think about taxes, they think about deadlines for filing returns, paying balances owed and gathering all the necessary documents to do so.

But effective tax planning is not something that happens once a year, as it’s an ongoing process that, when done correctly, can help ensure more of your hard-earned money stays working toward your goals.

As a midyear check-in point, July is often an ideal time to pause and look ahead to ensure you’re making thoughtful decisions that can improve your overall financial positioning before the end of the year.

Here are a few areas worth considering when it comes to successful tax strategies:

1. Are you maximizing the right registered accounts?

Registered accounts such as TFSAs and RRSPs can play an important role in building tax-efficient wealth, but the right strategy depends on your personal circumstances.

For example, RRSP contributions may be beneficial for individuals in higher tax brackets today because contributions can reduce taxable income while allowing investments to grow tax-deferred until withdrawn.

TFSA contributions offer tax-free growth and withdrawals, making them valuable for both short-term flexibility and long-term wealth building.

The key question isn’t whether you should contribute to your RRSP or TFSA, but rather, which strategy best supports your current situation and future goals. This considers factors such as income level, retirement timeline, future tax rates, and estate planning goals. All these things and more play a significant role, and at McNeily Wealth Management, I work with clients every day to ensure a thoughtful strategy is in place.

2. Are you planning for taxes before they become a surprise?

No one likes to be surprised with a bigger bill than anticipated, and the same is true about year-end taxes owed. One of the biggest financial challenges and stressors for individuals, business owners, and self-employed professionals alike is waiting until tax season to think about taxes. By July, many people have a clearer picture of their annual income and expenses, making it the perfect time to review whether any adjustments are needed.

This may include:

Reviewing tax installments
Setting aside appropriate funds for future tax obligations
Adjusting investment strategies
Reviewing income sources and timing

For self-employed individuals and business owners, in particular, strong revenue years can create both exciting opportunities and unexpected tax implications. I’ve worked with many people to ensure they don’t have an unexpected surprise come tax season, and a proactive approach in the summer allows you to plan successfully rather than react when it’s too late to make as much of a difference.

3. Are your investments tax-efficient?

Where you hold investments can be just as important as what you invest in, as different investment accounts have different tax treatments, and the way investments are structured can impact after-tax returns over time.

Tax planning strategies may include:

Reviewing asset location between registered and non-registered accounts
Understanding the tax implications of investment income
Considering capital gains planning
Reviewing whether your portfolio continues to align with your financial goals

Because the goal here is not simply minimizing taxes today or for this calendar year, but building a strategy that supports long-term wealth generation for years to come.

4. Charitable giving strategies

For many Canadians and clients I work with at McNeily Wealth Management, charitable giving is an important part of a financial plan. However, many people don’t realize that some strategies can help them maximize both their impact and potential tax benefits.

Depending on individual circumstances, this may look like:

Planning donations strategically rather than making decisions last minute
Using appreciated securities as part of charitable giving
Incorporating philanthropy into broader estate planning conversations

Giving back to others is often deeply connected to personal values, and I believe it should be. Because of this, it will look different for each person, and one of the things I love most about working with my clients is hearing about where their passions lie and what their priorities are. And regardless of what you may decide is most important to you, a thoughtfully laid-out financial plan can help ensure your generosity has the greatest possible impact.

5. Estate and legacy planning alignment

Tax planning in 2026 isn’t just about the year 2026, but about ensuring your wealth transfers efficiently in the future and, for many, ideally, for generations to come.

Sudden life changes such as marriage, divorce, births, deaths, business transitions, and retirement decisions can affect whether your current plan still reflects your wishes. There’s so much value in ensuring these things are up-to-date and still feel aligned as you move through different periods of life.

July can be a great time to review these important topics by asking yourself questions like:

Are my beneficiaries up to date?
Does my estate plan reflect my current wishes?
Have I considered the tax implications of transferring wealth?
Are my loved ones prepared for the responsibilities that come with inheritance?

A strong financial plan considers not only how you build wealth, but how you protect it and pass it on to future generations.

A final note

Tax planning is ultimately about making intentional decisions with your money that can best support you now and in the future. The goal is not simply to pay less tax, but to ensure your financial decisions support the bigger picture: your lifestyle today, your goals tomorrow, and the legacy you leave behind.

As we move into the second half of the year, I implore you to ask yourself, “Am I making the most of the opportunities available to me, or am I waiting until tax season to think about my financial strategy?”

A proactive conversation today can create greater clarity, confidence, and options moving forward, and I’m here to equip you with exactly what you need to get there.

Wishing you all a happy and healthy July.