"Time is the friend of the wonderful business, the enemy of the mediocre." – Warren Buffett
Last Week’s Overview
| Index |
Performance |
| TSX Composite |
0.77% |
| Dow Jones |
-0.99%
|
| S&P 500 |
0.74% |
| NASDAQ |
0.68% |
Source: Bloomberg (October 29, 2026)
Weekly Insights
Each week, we break down the key events and market movements shaping the investing landscape. From economic data to investor sentiment and global headlines, this section captures what mattered most and how it impacted markets.
More Companies Join the Market Rally
About 400 of the companies in the S&P 500 rose during a recent trading session, even as the overall index slipped about 0.4% and the tech-heavy Nasdaq 100 fell about 1.4% on concerns about artificial intelligence (AI) spending. This tells us investors are finding opportunities well beyond the handful of large technology companies that have led the market; strong results from Mastercard and a raised sales forecast from Eli Lilly show that earnings growth is happening across many industries. For our portfolios, a broader market is healthy news, and it supports our approach of holding established technology leaders alongside quality companies in other sectors for a more balanced foundation.
Source: Bloomberg (October 29, 2026)
Record Demand for Microsoft's Bonds Shows Confidence in Strong Companies
Microsoft's first major bond sale since 2017 drew more than $115 billion in orders for an offering of at least $25 billion, making it one of the most popular U.S. corporate bond sales on record, according to Bloomberg. Investors were eager to lend to one of only two U.S. public companies with the highest possible credit rating (AAA) from both Moody's and S&P, a confidence backed by Microsoft's 48% jump in cloud revenue last quarter. For our bond holdings, this is a reminder that high-quality corporate bonds offer an attractive mix of income and stability, and why we stay selective about the companies we lend to.
Source: Bloomberg (October 29, 2026)
U.S. Economy Grows at Its Fastest Pace in a Year
The U.S. economy grew at its fastest pace in a year during the third quarter, as household spending rose at a 3.8% annual rate for the second straight quarter and business investment climbed by the most since 2020. What's encouraging is that business spending reached well beyond AI and data centres into industrial machinery and equipment, while low layoff levels kept the job market steady. Inflation remains the main challenge, with the Federal Reserve's preferred measure up 3.6% over the past year, which is why we continue to favour diversified portfolios built around companies with durable earnings and the ability to manage rising costs.
Source: Bloomberg (October 29, 2026)
Key Drivers of Our Outperformance
We believe in transparency when it comes to where outperformance is coming from. This section spotlights a top-performing company we hold, a sector where we've taken a winning position, and a strategy that has driven recent success across our portfolios.
- Company Highlight: Vertiv Holdings Co. (VRT)
- Vertiv gained 14.51% last week after reporting outstanding quarterly results, with revenue up 61% to $4.31 billion and new orders more than doubling. Vertiv makes the power and cooling equipment that keeps data centres running, so as companies invest heavily in AI computing, demand for its products keeps growing. Management raised its full-year revenue outlook to $14.65 billion, and while expectations are now high, we see Vertiv as one of the clearest beneficiaries of the investment behind AI.
- Source: Optimize Asset Management (October 29, 2026)
- Sector Highlight: Information Technology
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Information Technology was our strongest sector last week, led by chipmakers and cybersecurity companies including Micron, Broadcom, CrowdStrike (up 11.41%), AMD, and Palo Alto Networks (up 13.60%). The common thread is steady demand tied to AI, as businesses keep investing in computing power, memory chips, networks, and tools to protect their data, and strong results across the industry show that this spending is turning into real revenue. Valuations are elevated, so we focus on companies with lasting competitive advantages and strong cash flow that can adapt as technology spending changes over time.
- Source: Optimize Asset Management (October 29, 2026)
- Style Highlight: Quality
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Our Quality strategy, which focuses on established companies with steady earnings and strong finances, was our top-performing style last week. Gains came from a wide mix of businesses, including Johnson & Johnson (up 5.14%), Aon (up 7.26%), and McDonald's, showing that healthcare, insurance, and consumer companies can drive results alongside technology. With the Federal Reserve holding interest rates steady on October 28, we believe companies with dependable earnings and solid balance sheets add valuable balance to our portfolios.
Source: Optimize Asset Management (October 29, 2026)
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What To Look For Next Week
We also look ahead to the economic reports, events, and earnings that may influence the week ahead. From inflation and jobs data to corporate updates from key market players, this section keeps you informed on what's coming and why it matters.
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- U.S. Manufacturing Activity (Monday, November 2): Monday's ISM Manufacturing report surveys U.S. manufacturers on orders, production, hiring, and costs, with any reading above 50 signalling growth. In September, the index came in at 54.5, still pointing to solid expansion, as new orders and hiring picked up while costs for materials like steel, aluminum, and petroleum-based products rose sharply. We'll be watching whether demand stays strong and price pressures ease, since healthy factory activity supports corporate profits while rising costs can keep inflation elevated.
Source: Institute for Supply Management (October 29, 2026)-
- Canadian Unemployment Rate (Friday, November 6): Statistics Canada's monthly Labour Force Survey shows how many jobs were added or lost and how many Canadians are looking for work. In September, the unemployment rate edged up to 6.5% from a two-year low of 6.4%, and employment fell by 68,300, though the jobless rate stayed below its two-year average. A steady job market supports household spending and the broader Canadian economy, so this report will help shape expectations for the Bank of Canada's next interest rate decisions.
Source: Statistics Canada (October 29, 2026)
- U.S. Unemployment Rate (Friday, November 6): The same morning, the U.S. Bureau of Labor Statistics releases its monthly employment report, one of the most closely watched measures of economic health. In September, the number of employed Americans rose by 406,000 and 485,000 people joined the workforce, while the unemployment rate rose slightly to 4.2% as more people started looking for work. A strong job market supports consumer spending and company earnings, and this report will play a key role in shaping expectations for future Federal Reserve rate decisions.
Source: U.S. Bureau of Labor Statistics (October 29, 2026)
Sources: Bloomberg, AP News, PR Newswire, company earnings releases, Institute for Supply Management, Statistics Canada, U.S. Bureau of Labor Statistics
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Disclaimer: This report is for informational purposes only and does not constitute investment advice. Please consult with your financial advisor before making any investment decisions.