Podcast
Navigating Uncertainty
Will Simpson and Greg Wise
February 7, 2025
It sure doesn’t feel like the tariff fiasco was only five days ago. Markets spent the early part of the week trying to digest the chaos from last weekend’s near trade war but by midweek, things had stabilized.
The S&P 500, TSX, and most global indices still finished lower on the week, but it wasn’t the freefall some feared after Monday’s drama. That said, returns look more dire in Canadian dollar terms, thanks to the loonie’s strong rebound. Canadian equities held up relatively well, helped by strength in Materials and Energy, while U.S. markets took a hit from weakness in consumer discretionary and Telcos.
One of the bigger moves came in currencies, with the CAD staging a solid rebound after its rollercoaster ride early in the week. At one point the loonie was down to nearly 0.675 before reversing course as markets realized the worst-case scenario had been avoided, FOR NOW. The trade drama may be on pause, but it’s clear markets are going to stay sensitive to any new developments on that front.
Beyond tariffs, economic data was a mixed bag. U.S. payrolls were slightly below expectations, but solid revisions and a drop in the unemployment rate were helpful. Canadian employment numbers surprised to the upside again, adding to a string of strong domestic data.
For now, we get a brief reprieve — but something tells me this isn’t the last time we’ll be talking about tariffs.
All of this is to say there continues to be a lot of noise and uncertainty in the markets and the economy.
At Aretec, we manage the portfolio based on changing market conditions.
We are staying grounded in our process to navigate through the uncertainty — now more than ever.
Please reach out if you have any questions or want to discuss your investment portfolio and strategy or your financial, wealth and retirement plan.
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