“Time is the friend of the wonderful company, the enemy of the mediocre.” -Joel Warren Buffett
Last Week’s Overview
| Index |
Performance |
| TSX Composite |
0.41% |
| Dow Jones |
0.52%
|
| S&P 500 |
-0.74% |
| NASDAQ |
-1.28% |
Source: Bloomberg (May 21, 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.
Inflation Pressures Return as Energy Costs Climb AI Investment Cycle Broadens Beyond Big Tech
Nvidia's latest results confirmed that the artificial intelligence boom is spreading well beyond large technology platforms and into businesses, industry, and government, with revenue surging 85% to $81.6 billion
Encouragingly, the company pointed to expanding opportunities in robotics, autonomous systems, and "physical AI," signalling that the next wave of growth could reach across many sectors of the economy. For our portfolios, this reinforces our conviction that AI is a durable, multi-year theme supporting earnings growth and leadership among high-quality, large-cap technology companies.
Higher Long-Term Yields Are Shifting Focus for Income Investors
The 30-year Treasury yield climbed to its highest level since 2007, yet the fundamentals beneath the volatility remain solid, with companies still investing aggressively and consumers continuing to spend. This resilience despite tighter financial conditions is an encouraging sign of underlying economic strength. For income-focused investors, this environment is creating attractive positioning opportunities within fixed income and selective dividend-oriented strategies.
Housing Activity Shows Resilience Despite Higher Rates
Despite the average 30-year mortgage rate ticking up to 6.51%, housing activity is proving stronger than expected, with pending home sales rising for three straight months. New listings and contract signings have reached their highest levels since 2022, reflecting healthy household finances, solid job markets, and resilient consumer confidence. This ongoing stabilization supports broader economic growth and creates opportunities in housing-related sectors, financial services, and consumer spending.
Key Drivers of Our Outperformance
We believe in transparency when it comes to where our 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.
- Top Company: Nvidia Corp. (NVDA)
Nvidia was our strongest performer last week with an impressive 18.0% gain, driven by surging optimism around AI infrastructure and accelerated computing. The rally reflected growing confidence in sustained data centre demand, next-generation chip adoption, and expanding enterprise use of generative AI.
-
- Nvidia's dominant position across AI infrastructure, networking, and computing continues to make it a cornerstone of our growth-oriented holdings.
- Top Sector: Information Technology
The Information Technology sector delivered our strongest contribution last week, powered by standout gains from Qualcomm, Nvidia, Apple, and Broadcom. This strength reflects continued enthusiasm for AI infrastructure, cloud computing demand, and the early stages of what we believe is a multi-year investment cycle. These large-cap technology leaders combine balance sheet strength, earnings visibility, and the ability to monetize AI across chips, software, and the cloud, qualities that keep attracting institutional capital.
- Top Quant Strategy: Size
Our Size strategy was the week's strongest performer, with mega-cap holdings like Nvidia, Alphabet, Tesla, and Apple meaningfully outpacing the broader market. Investors continue to gravitate toward globally scaled companies with durable balance sheets, strong cash flow, and direct exposure to AI growth. These advantages let the largest companies sustain heavy investment, pursue strategic opportunities, and lead across multiple markets, reinforcing our confidence in quality large-cap positioning.
What To Look For Next Week
We look ahead to the economic reports, events, and earnings that may influence the week ahead.
-
- U.S. Core PCE Inflation (Thursday, May 28): Thursday brings the Federal Reserve's preferred inflation gauge, the core PCE price index, which most recently rose 0.3% month-over-month and 3.2% from a year ago. While still above the Fed's 2% target, this report helps shape expectations for the path of interest rates in the months ahead. For investors, it offers valuable insight into how quickly inflation is cooling and what that could mean for both stocks and bonds.
- U.S. First-Quarter GDP (Thursday, May 28): Also on Thursday, we'll get an updated look at first-quarter economic growth, which expanded at a healthy 2.0% annualized rate, a strong rebound from the prior quarter. The gains were led by an 8.7% jump in private investment, including the fastest business equipment spending in nearly three years, much of it tied to artificial intelligence. This kind of investment-driven growth is encouraging because it reflects companies positioning themselves for long-term productivity gains.
- Canadian GDP, Friday, May 29: On Friday, attention shifts north as Canada reports fourth-quarter GDP, with full-year 2025 growth coming in at a steady 1.7%. The quarter reflected lower business inventories alongside continued strength in household spending and government investment. For investors, Canadian growth data provides useful context for the broader North American economy and helps inform opportunities across our Canadian holdings.
Sources: Bloomberg (May 21, 2026), Optimize Asset Management (May 21, 2026), U.S. Bureau of Economic Analysis, and Statistics Canada.
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.