You're not alone if you feel like the world is more chaotic than ever. The flood of uncertainty can be overwhelming, from trade tariffs and political battles to fears of economic decline and media distrust. Add in the U.S. election and Donald Trump’s resurgence, and it's no wonder that anxiety is running high.
Let’s be clear - these concerns are not unfounded. Markets do not like uncertainty, and as history has shown, election years, trade wars, and economic shifts often bring volatility. But this is not the first time we have faced these challenges, and it will not be the last.
The Trump Effect - Disruptive, But Not Just Negative
Whether you love or hate him, Trump has always been a disruptor. His approach to trade, tariffs, and global alliances has shaken traditional economic relationships, including Canada’s. While this has created tension—most recently with threats of tariffs on Canadian exports—it has also forced us to confront some of our inefficiencies.
For example:
Energy & Supply Chains – The uncertainty around U.S.policies has accelerated Canada’s push for energy independence and more self-sufficient supply chains. This shift is already driving investment in domestic manufacturing and alternative energy sources.
Technology & Innovation – As access to U.S. markets becomes less predictable, Canadian companies are expanding into new global markets, driving growth in industries like AI, fintech, and green technology.
Fiscal Responsibility - Rising debt levels and government spending have become pressing issues. While painful, economic stress has a way of forcing better financial discipline and efficiency, something we’ve seen in past downturns.
In the long run, these shifts could make Canada stronger, more innovative, and less reliant on any single trading partner. That doesn’t mean the road will be smooth, but it does mean that uncertainty often drives progress.
Fear & Reality—Lessons from Recent Volatility
It’s easy to get caught up in worst-case scenarios, but history has shown us that short-term panic often does not match long-term reality. Consider:
COVID Market Crash (2020) - The world was shutting down, markets collapsed, and fear was at an all-time high. Yet within months, markets rebounded, and investors who stuck to their strategy recovered and thrived.
2008 Financial Crisis - This was one of the worst economic downturns in modern history. While devastating at the time, it led to stronger banking regulations, corporate accountability, and an eventual decade-long bull market.
U.S. Credit Downgrade (2011) - The U.S. lost its AAA credit rating, sending markets into a tailspin. Many feared lasting damage, yet within weeks, stability returned, and long-term investors were rewarded.
These moments felt like the beginning of something disastrous, yet markets, economies, and investors adapted. This is not to say that challenges should be ignored; they should be put into context.
Your Investments - Built for Times Like These
Your portfolio is not a reaction to today’s headlines; it is a long-term strategy designed for moments like this. We do not chase returns, react emotionally, or abandon discipline because of fear. We have structured your investments with market fluctuations in mind, ensuring they align with your risk tolerance and long-term goals.
Let’s Talk - Is Your Financial House in Order?
Just as Canada is being forced to look hard at its policies and trade relationships to avoid future economic vulnerabilities, taking stock of your financial foundation is essential. We often focus on investments, but proper financial security extends beyond portfolio performance, ensuring that every aspect of your financial plan is in place.
Think of it as maintaining a home. It’s easy to get caught up in curb appeal - the visible parts, like your investments. But what about the foundation? The roof? The emergency exits? Even the best-looking house can quickly become unstable in a storm if those aren't secure.
To ensure long-term stability, we should review the following:
✔ Life Insurance & Income Protection – Do you have adequate coverage to protect your family if something unexpected happens? Are your policies up to date?
✔ Estate Planning – Do you have a will and power of attorney? Have they been reviewed recently to reflect your current wishes?
✔ Tax Review & Cash Flow Management - Is your cash flow structured to handle short-term surprises without disrupting your long-term plans?
Taking a proactive approach now can prevent unnecessary stress later. By addressing these key components, we ensure that no matter what happens in the world - political upheaval, market swings, or economic shifts - you have a solid plan. Peace of mind comes not from predicting the future but from preparing for it.
We encourage you to reach out so we can review your complete financial picture. As always, we are here to help provide clarity, reassurance, and a plan that keeps you on track, no matter what uncertainty lies ahead.
Warren Buffett in 2017 offered sage advice for when the stock market is falling: “Keep your head…No one can tell you when these major market moves may happen...There is simply no telling how far stocks can fall in a short period,” Warren Buffett wrote in a 2017 letter to shareholders. But even when major stock drops happen, he suggested finding solace in Rudyard Kipling’s 1895 poem “If.”
“If you can keep your head when all about you are losing theirs… If you can wait and not be tired by waiting… If you can think—and not make thoughts your aim… If you can trust yourself when all men doubt you… Yours is the Earth and everything that’s in it.”
This document is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed.All investments involve risk, including the potential loss of principal. Leveraged ETFs and other complex investment vehicles may not be suitable for all investors and should only be used with a full understanding of their risks. Asset class performance varies over time, and diversification does not ensure a profit or protect against a loss. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Market conditions may change which may impact the information contained in this document. All charts and illustrations in this document are for illustrative purposes only. They are not intended to predict or project investment results. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. The opinions expressed in the communication are solely those of the author(s) and are not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. Mutual funds and other securities are offered through De Thomas Wealth Management, a mutual fund dealer registered in each province in which it conducts business and a member of the Canadian Investment Regulatory Organization (CIRO).