Don’t let the markets control your strategy

Winners, drawers, and losers

Winner: Hong Kong’s stock market

As the trade war strains U.S.-China relations, more Chinese companies are choosing to IPO on the Hong Kong market.

Drawer: The Chinese economy

May's interest rate cuts and other changes provided a bit of a boost, but the tariffs and deflationary pressures brought things right back down.

Loser: Healthcare stocks

The world's reserve currency has had that status called into question, as the odds of U.S. isolationism increase.

We always talk about how important it is for investors to tune out the noise. Well, the first half of 2025 was a cacophony. It was also a great reminder that, no matter how tempting it may be to adjust your investments every time blanket tariffs are announced or a new company upends the AI industry, those reactions can often cause more harm than good. If history is any guide, years from now, moments that currently feel huge will just be a blip in your portfolio’s performance.

That’s not always the case, of course. There will be some moments, both in life and in the news, that require you to reassess your approach to saving and investing. The real skill is knowing the difference.

That’s why this month we decided to create this easy-to-use flowchart. Whenever you find yourself wondering if it’s time to call your advisor and update your strategy, first take a breath. Then ask yourself these few simple questions.

🙋 CLIENT QUESTIONS

President Trump’s “One Big Beautiful Bill” does include a few provisions that would increase withholding taxes on Canadians who earn dividends from U.S. stocks. But — and this part is really important — the bill hasn’t passed yet. It still needs to get through the U.S. Senate, where it’s subject to further revision. Plus, that particular aspect could be negotiated away as part of a new Canada-U.S. trade deal.

So what should you do? Nothing. If a tax increase does actually happen and you’re geographically diversified (like you are with our managed portfolios), you have built-in protection already. But also, it’s too early to react. For context, look at what happened with the proposed capital gains tax increase last year. People scrambled to prepare for it, sometimes making big adjustments to their portfolios, and then Prime Minister Carney scrapped it. We’re monitoring the situation and we’ll let you know as soon as there is something concrete to react to.

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