Weekly Wrap

It was another leg up for stocks this week; all this despite a lack of concrete evidence of a US/Iran deal combined with growing evidence that inflation is back again. The US government referred to the recent jump in inflation as ‘transitory’…this word gives me PTSD as the last time US officials referred to inflation as transitory it lasted 3-4 years! Canadian stocks moved sideways this week as the 9% drop in oil prices sent the energy sector down, whiles strong Canadian banks earnings weren’t enough to send already high bank share prices any higher. US stocks gained another 1.5% this week as tech stocks rallied again. EU and Emerging Market stocks gained 1% and 1.5% respectively propelled higher on hopes that the potential opening of the Strait of Hormuz would get energy prices back down to earth. Interest rates fell with oil prices as North American bond yields came down a little over 0.1% on average.

Market Insights

Canada-Germany LNG Deal Paves the Way for further non-US Deals. Canada has agreed to a deal to supply Germany with liquified natural gas (LNG) from the Ksi Lisims LNG project, the planned C$10 billion export plant in northwestern British Columbia. Germany will purchase nearly 1 million metric tons of LNG per year from Canada, around 1% of Germany's 2025 natural gas import volumes. While a small proportion of natural gas flows, analysts have highlighted the symbolism of such a move in Germany's efforts to diversify away from Russian and potentially US energy. LNG accounts for nearly 13% of total gas imports into Germany, with about 94% previously purchased from the US. The Ksi Lisims project has received regulatory approval, but awaits a final investment decision to begin construction. The deal was announced Wednesday by Canadian Energy Minister Tim Hodgson. PM Carney’s next mission is to try to position Canada well for the upcoming CUSMA talks. Carney has shown a real knack for creating buzz-phrases that seem to nicely capture the headlines. The latest was an attempt to position Canada as a key part of President Trump’s MAGA plans as Carney said to New York investors that his wish is for Canada to play a role in helping make America great again.  

Shift to green energy: From subsidies to market forces. For years, the clean energy shift relied on subsidies and climate messaging in order to get up to speed. Now, policymakers and consumers see it as a matter of cost, security, and abundance. The current US administration may not be in favor of green energy, but the Iran war is accelerating the global shift from oil and gas as consumers are responding to surging energy prices. Nearly 93% of US electricity capacity set to be added in 2026 is expected to come from solar, wind and batteries. Meanwhile, according to some individuals close to the matter, the US and Iran have come to a preliminary deal to extend the ongoing ceasefire by 60 days. Speaking to reporters on Thursday, US Vice President JD Vance stated that the two nations were "going back and forth on a couple of language points," including surrounding Iran's highly enriched uranium. Iran's semi-official Tasnim news agency said that the text of the proposal hadn't been finalized, while US President Donald Trump has yet to agree to any terms. According to Axios reporting, Iran would remove all mines from the Strait of Hormuz (SoH) within 30 days and traffic through the critical waterway would be unrestricted. The report has supported some optimism in risk assets, with global equities continuing to push all-time highs. Still, investors remain skeptical given the uncertainties that remain over a more sustainable peace deal, highlighted by accusations of ceasefire breaches by both sides. One nice thing about green energy is it doesn’t have to go through the Strait of Hormuz.

Portfolio Update

This week we reviewed the opportunities in the Emerging Markets. We are currently overweight EM exposure compared to peers and have been for a few years, but it is possible we may seek to increase this position further. The arguments to raise exposure are compelling and plentiful: much cheaper valuations, tremendous earnings growth (after a few lackluster years), room for investor flows to increase (relative to history global money managers are underweight) and improved political, economic and governance measures (which has historically been the main knock for would be EM investors). The concerns we are assessing include the highly concentrated nature of these markets with mega-cap tech behemoths such as Taiwan Semiconductor being near impossible to avoid. But something interesting about the tech exposure is that the valuations are reasonable and these companies tend to be less speculative in their growth exceptions since they are often more in the manufacturing space. TSM is a good example; they are the dominant manufacturer of chips in the world and are agnostic about who their customers are and what types of chips are being made. EM is one of the few compelling stock markets left and it’s possible we may be in the early innings of a long period of outperformance.  

Please note any changes apply to our PIM Portfolios Only, subject to restrictions. Please call to clarify if you have any questions.

Planning On

Estate Planning for Blended Families

Family dynamics are more complicated than ever, yet despite the growing prevalence of blended families, many people delay writing or updating their estate plans—often with unforeseen consequences.

The Risks Are Real

Without proper planning, blended families face serious pitfalls. A long-term common-law spouse might receive nothing during intestacy while the deceased's children from a prior relationship inherit everything. Alternatively, a poorly drafted Will could give the entire estate to a second spouse while excluding children from earlier relationships.

When these situations occur, aggrieved family members can launch costly legal claims. Surviving spouses may pursue dependant's relief claims if inadequately provided for, married spouses can seek equalization claims for property value increases during the marriage, and children or former partners may challenge the will's validity by alleging undue influence or suspicious circumstances. 

What Estate Lawyers Should Explore

Effective planning requires understanding clients' motivations and intentions. Key questions include: Should a multi-generational family cottage pass to children while also benefiting the second spouse? Are there obligations to a prior spouse? Are there stepchildren to treat as their own? What are the family dynamics—will everyone cooperate, or is conflict likely?

Four Best-Practice Strategies

• Spousal Trusts hold assets for the surviving spouse's benefit while preserving capital for ultimate beneficiaries. These can restrict capital access, cap annual withdrawals, or protect family assets from sale.
• Insurance & Registered Plans bypass the estate through designated beneficiaries, ensuring rapid access and avoiding probate fees.
• Careful Executor Selection matters tremendously. Professional executors acting neutrally reduce conflict better than joint appointments of spouses and children.
• Clear Communication prevents misunderstandings. Family meetings and private "letters of wishes" help beneficiaries understand intentions and reduce post-death disputes.

The Takeaway

Estate planning for blended families requires strategy, clarity, and creativity. Starting conversations early prevents disputes and secures peace of mind for the entire family.

This information is not intended to provide legal, tax, or insurance advice. To ensure that your own circumstances have been properly considered and that action is taken based on the latest information available, you should obtain professional advice from a qualified lawyer or accountant, as applicable, before acting on any of the information.

Charts of the Week

Spare Time Updates

How to Spot & Avoid Lifestyle Creep

Statistics Canada recently showed incomes have been increasing in Canada. As people earn more, they may feel more comfortable buying a new car or spending more on vacations. Over time, this higher spending means people could have less room for savings and investments and potentially more debt.

Free Metro Vancouver outdoor concert series for sunset tunes

Concerts at the Pier summer festival is returning for its 10th anniversary, featuring five nights of free concerts through June, July and August at various locations.

Feel free to share this newsletter with anyone who might benefit from it or find value in it. Thank you for reading our commentary. We welcome your feedback!

Return to homepage

RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. â / ™ Trademark(s) of Royal Bank of Canada.  Used under license.  © RBC Dominion Securities Inc. 2026. All rights reserved. This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor.  This will ensure that your own circumstances have been considered properly and that any action is taken based upon the latest available information. The strategies and advice in this report are provided for general guidance.  Readers should consult their own Investment Advisor when planning to implement a strategy. Interest rates, market conditions, special offers, tax rulings, and other investment factors are subject to change. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness.  This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities.  This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof.   The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. This publication is for information purposes only. Graphs and charts are used for illustrative purposes only and do not reflect future values or changes. Past performance is not indicative of future returns. This commentary is based on information that is believed to be accurate at the time of writing and is subject to change.  All opinions and estimates contained in this report constitute RBC Dominion Securities Inc.'s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Interest rates, market conditions and other investment factors are subject to change. Past performance may not be repeated. The information provided is intended only to illustrate certain historical returns and is not intended to reflect future values or returns. This publication is not intended as nor does it constitute tax or legal advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. Insurance products are offered through RBC Wealth Management Financial Services Inc.("RBC WMFS"), a subsidiary of RBC Dominion Securities Inc.* RBC WMFS is licensed as a financial services firm in the province of Quebec. When providing insurance products in all provinces except Quebec, Investment Advisors are acting as Insurance Representatives of RBC WMFS.   In Quebec, Investment Advisors and Estate Planning Specialists are acting as Financial Security Advisors of RBC WMFS.  RBC Dominion Securities Inc., RBC WMFS and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. and RBC WMFS are member companies of RBC Wealth Management, a business segment of Royal Bank of Canada. â / ™ Trademark(s) of Royal Bank of Canada.  Used under license.

RBC Dominion Securities Inc.