CG Wealth Management June Newsletter
Personal Note from the Team
Tax Season
As we close out another tax season, and all do a collective sigh of relief as most of us all no longer need to scramble to collect various tax slips and documents, we wanted to thank you for your time, effort, and cooperation over the past few months!A friendly reminder that if you or your spouse/common-law partner are self-employed, your deadline to file your 2025 taxes is June 15, 2026.
As the weather starts to warm up, we wanted to wish all our farmers a good luck as they begin seeding and hope that this season is a bountiful one.
The team has been hard at work and is excited to share some updates in the near future on some of the projects we have been undertaking.
Enjoy this monthly edition of the CG Wealth Newsletter!
Market Updates
The top headlines in the market in April were:
U.S. Equities Stage a Powerful Rebound: U.S. stock markets delivered one of their strongest monthly performances in years amid a robust Q1 earnings season that was largely overshadowed by ongoing geopolitical tensions. The S&P 500 climbed to new all-time highs near the end of April and closed above 7200.
Canadian Equities Post Solid Gains: The S&P/TSX Composite Index rose above 3.5% in April. Performance was mixed across sectors as Canadian markets benefited from broader global risk appetite and a resilient domestic backdrop.
Oil Prices Remain Volatile Amid Geopolitical Developments: Brent Crude continued to experience swings due to disruptions in the Strait of Hormuz related to the U.S.-Israel-Iran conflict. Prices spiked at times above $100–$110/barrel on supply concerns but eased toward month-end on hopes of diplomatic progress and ceasefire extensions. This volatility weighed on energy stocks while contributing to broader inflation worries.
Precious Metals Pull Back from Earlier Highs: Gold and silver gave up some ground in April after strong gains earlier in the year. Persistent oil-driven inflation concerns and a higher-for-longer interest rate outlook from central banks (including the Fed holding rates) capped upside, even as safe-haven demand remained in the background.
Macro Updates
The top headlines in the macroeconomic sphere in April were:
Central Banks Hold Rates Steady Amid Uncertainty: Both the Bank of Canada and the U.S. Federal Reserve maintained their key policy rates in late April. The Bank of Canada kept its overnight rate at 2.25% on April 29, citing the need to monitor the ongoing Middle East conflict, elevated energy prices, and U.S. trade policy uncertainty. The Bank noted that inflation is expected to rise in the future due to higher oil costs but projected it would ease back toward the 2% target in 2027, assuming oil prices moderate. Similarly, the Federal Reserve in the States held the federal funds rate target range at 3.5%–3.75% on April 29. The decision saw notable dissent, reflecting divided views on balancing inflation risks from the energy shock against growth concerns.
Ongoing Iran Conflict Continues to Disrupt Global Energy Markets and Economic Outlook: The geopolitical tensions stemming from the earlier U.S.-Israel operations in Iran and the partial closure/disruption of the Strait of Hormuz remained a dominant macro factor throughout April. Oil prices stayed volatile and elevated, contributing to higher global inflation pressures. Supply chain strains, higher production costs, and food security concerns (linked to fertilizer and energy prices) are rippling through both advanced and emerging economies.
U.S.-Canada Trade Tensions Persist with Focus on Tariffs and USMCA Review: Trade frictions between the U.S. and Canada continued to weigh on economic sentiment. U.S. tariffs on certain Canadian goods (including steel, aluminum, and autos) remained in place, prompting ongoing negotiations and retaliatory measures. Canadian officials are actively seeking relief ahead of the July 2026 USMCA review. The Bank of Canada highlighted these trade policy uncertainties as a key risk to domestic growth, projecting Canadian GDP growth at a modest 1.2% for 2026.
Learn: What moves a stock’s price?
At its simplest level, a stock price moves because of supply and demand. Think of a stock like a rare collectible or a trendy pair of sneakers: if everyone wants to buy them but only a few people are selling, the price shoots up. Conversely, if a company releases a bad product and everyone tries to sell their shares at once, the price drops to entice a buyer. This constant "tug-of-war" between buyers and sellers is what creates the flickering numbers you see on financial news sites.
Beyond basic trading, the biggest driver of demand is future expectations. Investors aren't just buying a company for what it did yesterday; they are betting on what it will earn tomorrow. If a company reports "strong earnings" (making more profit than expected), investors flock to it like a restaurant that just received a glowing review. If the company hints at trouble ahead, investors might head for the exits. Essentially, the stock price is a "scoreboard" reflecting how much confidence the public has in that company’s future success.
Finally, external forces act like the "weather" for the entire market. Even if a specific company is doing well, macroeconomic factors—like rising interest rates or changes in the global economy—can push prices down. Think of it like a rising or falling tide: when the economic "water" is high and interest rates are low, most boats (stocks) float upward together. When the tide goes out due to inflation or recession fears, even the best companies might see their stock prices dip temporarily as the entire market cools off.
