Life, Markets & a Changing World

Jack’s usual programming has been interrupted

If you opened this month’s newsletter expecting Jack’s market commentary, you haven’t opened the wrong email. He hasn’t retired – I’ve just borrowed the keyboard. After a few years as a partner on the team, I figured it was time I took a turn writing the newsletter.

One of the things I’ve enjoyed most over these past few years has been getting to know so many of you. Our conversations often start with a question about investments or taxes and lead to talking about your children, your parents, or what you want the next chapter of your life to look like. Being invited into those conversations is a part of this work I love, and I appreciate the trust that comes with it.

For my first turn at the newsletter, I wanted to share something a little more personal.

A letter from my future self

With a six-year-old and a three-year-old at home, much of my life involves finding missing shoes, negotiating school outfits and convincing someone that we do, in fact, need to leave for hockey now. Somewhere in between, there are emails to answer and a running list of things I’m hoping to get done once everyone is asleep.

I recently wrote A letter from my future self: If I could have one more day. In it, I imagine being 83 and waking up at 33 again, with one day to return to the life I’m living now. I get to walk the kids to school holding their little hands, hear my dad’s voice and come home to the familiar chaos of dinner and bedtime. The day is ordinary, but I experience it knowing how much I’ll eventually miss it.

Writing it made me think about how often I’m trying to get through the day, even when it’s filled with the people and things I love most. I spend so much of my working life helping people prepare for the years ahead, and I needed that reminder to pay a little more attention to the life happening around me, too.

I wanted to share the piece with you in this month’s newsletter. Perhaps it will bring back a memory of your own, or help you notice something in your day that you’ll want to remember. If it does, I’d love to hear what the letter brings to mind for you!

A conversation worth having

Estate planning often falls into the category of things we know we should get around to. And even when the documents are signed, years can pass without us looking at them again. In that time, children grow up, relationships evolve and the people we’ve named to take on important responsibilities may be in very different circumstances.

For parents of young children, choosing a guardian means thinking about what life would look like for your children in that person’s home. If they lost their parents, would they also have to leave their school, their friends and the community they’ve grown up in? Would they be moving across the country, or being raised by someone whose parenting values are quite different from your own? These are difficult things to imagine, but they deserve a conversation with the person you’ve chosen, especially if it’s been years since you last spoke about it.

The same thought should go into the other decisions in your plan:

• Does your will still reflect your wishes and your family’s circumstances?
• Would you choose the same executor today, and are they still comfortable taking on the role?
• Does someone you trust know where to find your important documents?
• Are there wishes or decisions you would want to explain to your family yourself?

If it’s been a while since you reviewed your planning, let’s talk. We can start with what’s changed in your life and work with your lawyer and accountant to make sure your plan still reflects what you want for your family.

Some news I’m proud to share

Before signing off, I wanted to share that I am so honoured to receive FP Canada’s 2026 Emerging Leader Award this year. Alongside my work with clients, I’ve spent many years on the board of directors with the Society of Trust and Estate Practitioners and the Financial Planning Association of Canada. I’ve learned so much from the people I’ve worked with through those organizations, and it’s been rewarding to contribute to the profession beyond my own practice. Having that work recognized meant a great deal to me, and I’m grateful to the people who have supported and encouraged me along the way.

You can read more about the recognition here.

Jack, you can have the keyboard back now. I’ll leave the bond vigilantes to you

- Alysha

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Markets, Earnings and the Bigger Picture

Despite a strong year for markets, the last few months have been characterized by somewhat choppy, sideways action. With no shortage of negative headlines and reasons for investors to worry, it can be easy to interpret this as a sign that something might be changing. But the fundamentals supporting this market remain strong, and many of the concerns that have dominated the conversation have simply not materialized. We view this recent period of consolidation as a healthy development following a strong advance, rather than an indication that the broader bull market has run its course.

Among the developments we've been following, the ongoing conflict in the Middle East continues to put pressure on energy prices, complicating the inflation outlook and prompting the first interest rate increase from the U.S. Federal Reserve since it began cutting rates in 2024. Those same pressures are being felt here at home, with the possibility that the Bank of Canada follows suit now entering the conversation. While we still believe much of this inflationary pressure will eventually fade as energy markets normalize, the timing remains the million-dollar question.

Bond yields have also moved higher as investors weigh these inflation concerns alongside expectations for stronger economic growth. This is something we've anticipated and addressed within our fixed income portfolios by reducing our exposure to longer-term bonds in favour of shorter-term bond investments, which are less sensitive to rising interest rates. What's particularly interesting, however, is how well equities have held up despite these pressures. Stronger earnings expectations have helped offset the impact of higher yields, a useful reminder that rising interest rates and rising stock prices aren't necessarily mutually exclusive.

Looking ahead, the U.S. midterm elections are just around the corner, bringing another potential source of uncertainty. Historically, markets have often struggled in the months leading into these elections, but the period that follows has been a different story. In fact, the final quarter of a midterm election year and the first two quarters of the following year have historically been the strongest three-quarter stretch of the entire four-year presidential cycle. History is never a guarantee, but it's an encouraging reminder that political uncertainty often proves less consequential than investors initially fear.

Perhaps the most encouraging development, however, is what's driving the market's gains. Recent research shows that much of this year's equity performance has been supported by rising corporate earnings rather than investors simply being willing to pay more for those earnings. In fact, despite strong returns, valuations across several major markets are actually lower than they were at the beginning of the year, as earnings have grown faster than the rise in share prices. That's an important distinction, particularly given how frequently we hear concerns that stocks have become too expensive.

Of course, much of this earnings growth continues to be supported by the extraordinary investment taking place around artificial intelligence. We've written extensively about why we believe this represents a generational investment cycle, and the evidence continues to reinforce that view. With another earnings season underway, we'll be watching closely for further confirmation that this investment is translating into sustained growth in corporate profits.

Ultimately, the headlines will continue to change, and there will always be something for investors to worry about. But the underlying fundamentals remain encouraging, and as long as earnings continue to grow, we believe there's good reason to remain constructive about the outlook for markets.
- Jack

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Under the Hood: Purpose Tactical Asset Allocation Fund

One of the longest-standing holdings across our portfolios is the Purpose Tactical Asset Allocation Fund, an investment that plays an important role in how we manage risk. Unlike traditional investment strategies that maintain relatively fixed allocations to stocks and bonds, Purpose uses a rules-based approach that monitors market conditions daily and adjusts its investments accordingly. Using ETFs, the fund can shift from being fully invested in stocks to holding entirely bonds or cash when conditions warrant, allowing it to respond quickly as markets change.

For us, the real value is how this complements our broader investment approach. We prefer to own high-quality businesses for the long term, giving them time to grow and compound in value rather than constantly adjusting our holdings in response to short-term market movements. Purpose provides an additional layer of offence and defense, allowing us to adjust our overall exposure to stocks without having to continually trade the individual companies we want to own. It's been a valuable contributor to portfolio stability through different market cycles, and we've chosen to highlight it this month with a short video explaining how it works and why we continue to hold it.

Play Video

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Cybersecurity: A Growing Risk Worth Understanding

October is Cyber Security Awareness Month in Canada, and with so much of our personal and financial lives tied to the digital world, it's a timely reminder of the risks we face. As artificial intelligence grows more capable, so too do the tools available to criminals looking to steal information or commit fraud. It's not a reason for alarm, but something we should all be taking more seriously.

Just this week, researchers using AI helped uncover serious security weaknesses in technology supporting millions of websites. While the discovery was intended to make the internet safer, information about the vulnerabilities reached potential attackers before the security fixes were publicly released. It's a fascinating example of how AI is becoming a powerful tool for both those protecting us and those looking to do harm. You can read more about the discovery here.

For individuals, the risks are becoming more personal. Criminals can now use AI to imitate someone's voice, making a fraudulent phone call sound remarkably like a family member or someone from your bank. Consider establishing a family safe word to verify unexpected calls, letting unfamiliar numbers go to voicemail, and independently confirming requests involving money or personal information.

A little extra caution can go a long way. For more practical advice on protecting yourself online, the Canadian Internet Registration Authority (CIRA) recently published a helpful article, Five Simple Ways to Stay Safer Online, which is well worth a read.