We wanted to share a brief update as we enter Q3 amid heightened uncertainty in the markets. The good news is that your portfolios are well positioned to handle the current turbulence, thanks to our disciplined focus on three key pillars:
1) High-Quality Investments
2) Total Return – balancing growth with reliable income-producing assets (dividends and interest) that help provide ballast during equity market swings.
3) Long-Term Discipline – staying invested through volatility to capture the benefits of compounding over time.
We remain tactically defensive while staying ready to deploy our bond allocation into equities when we see signs of stabilization. As always, we look to capitalize on market inefficiencies, and we continue to use dollar-cost averaging on cash positions to acquire
assets at lower unit prices.
What’s Driving Current Market Volatility
1) Geopolitical Tensions & Energy Shocks
The ongoing Iran conflict has disrupted key oil routes, pushing energy prices higher and creating inflationary pressure. This has led to sharp short-term moves in both stocks and bonds.
2) Policy & Trade Uncertainty
Ongoing tariff negotiations and efforts by both Canada and the U.S. to diversify trade are creating headline risk. Markets are also watching fiscal policy developments, including potential tax changes and interest rate decisions under the new Federal Reserve Chair, Kevin Warsh.
While the volatility feels significant, it’s important to put it in perspective. Over the past five years, markets have navigated COVID, the Russia-Ukraine conflict, rising interest rates, supply chain disruptions, and now U.S.-Iran tensions. What we’re seeing today is largely headline-driven noise.
Encouragingly, markets continue to show resilience, supported by solid corporate earnings growth. We believe the current environment remains a normal part of the economic cycle rather than a reason for long-term concern.
We will continue to monitor the situation closely and keep you informed. Please don’t hesitate to reach out if you have any questions or concerns — we’re always here to help.
Luminaris Team