“Our favourite holding period is forever.” - Warren Buffett
Last Week’s Overview
| Index | Performance |
| TSX Composite | 0.86% |
| Dow Jones |
1.41% |
| S&P 500 | 1.44% |
| NASDAQ | 2.74% |
Source: Bloomberg (June 18, 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.
U.S. Labour Market Remains a Foundation for Growth
The U.S. job market stayed on solid footing, with initial jobless claims easing to 226,000 and employers adding a better-than-expected 172,000 jobs in May. This matters because steady employment supports consumer spending, which remains the largest driver of the economy. For investors, a resilient labour market reinforces corporate earnings expectations and eases worries about a near-term slowdown.
Source: Bloomberg (June 18, 2026)
AI Infrastructure Investment Creates New Long-Term Opportunities
The next phase of the artificial intelligence story is increasingly becoming an infrastructure story. Federal regulators announced steps to speed up connecting large data centres to the power grid, potentially shortening approval timelines from years to just a few months, which helps address one of the biggest constraints on AI growth. For investors, this opens opportunities well beyond technology, extending into industrials, utilities, and infrastructure providers as a powerful long-term growth theme.
Source: Bloomberg (June 18, 2026)
Technology Leaders Invest Aggressively in Future Growth
Several of the largest technology companies are redirecting capital toward artificial intelligence, reducing share buybacks to fund data centres and computing capacity. While lower buybacks may look less favourable at first glance, the shift reflects management's confidence in AI's long-term potential, with companies like Alphabet, Amazon, Meta, and Microsoft investing at record levels. Markets have responded positively, recognizing that today's spending may drive future revenue, productivity gains, and competitive advantages.
Source: Bloomberg (June 18, 2026)
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: Honeywell International Inc. (HON)
- Honeywell was our top performer last week with an 11.04% gain, driven by optimism around its planned spin-off of the Aerospace business and management's focus on simplifying the company to unlock value. Investors also responded well to Honeywell's strength in automation, industrial software, and aerospace technologies, all areas benefiting from long-term demand trends. With a solid balance sheet and an attractive forward valuation, Honeywell is well-positioned to keep executing on these opportunities.
- Source: Optimize Asset Management (June 18, 2026)
- Top Sector: Financials
The Financials sector led our performance last week, powered by strong gains from major banks and capital markets firms including Goldman Sachs, Morgan Stanley, and JPMorgan, alongside Canadian leaders TD and Royal Bank. These businesses are benefiting from healthy credit conditions, active deal-making, and expectations that central banks will gradually move toward lower interest rates. This typically supports lending and market activity. With strong capital levels and resilient balance sheets, we remain focused on industry-leading institutions positioned to benefit from both economic strength and improving market conditions. - Source: Optimize Asset Management (June 18, 2026)
- Top Quant Strategy: Size
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Our Size strategy was the week's strongest performer as large, well-established companies outpaced their smaller peers. Industry leaders like NVIDIA, Tesla, Caterpillar, JPMorgan, and Alphabet led the way, reflecting investors' preference for businesses with the scale, financial strength, and earnings visibility to navigate a changing environment. We believe these resilient market leaders, with the resources to invest in trends like AI and automation, can continue performing across a range of conditions.
Source: Bloomberg, Optimize Asset Management (June 18, 2026)
What To Look For Next Week
We look ahead to the economic reports, events, and earnings that may influence the week ahead. 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.
- Canadian Inflation Data — Monday, June 22:
- Monday brings Canada's latest inflation report. The most recent reading was encouraging beneath the surface: while headline inflation ticked up to 2.8% (largely on higher energy and fuel prices), it came in well below the 3.1% that markets expected. The Bank of Canada's core measures eased to 2% and 2.1%, their lowest in five years. For investors, signs that underlying inflation is cooling are constructive, as they keep the door open for the Bank of Canada to gradually lower interest rates.
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Source: Statistics Canada (June 18, 2026)
- U.S. Inflation, Core PCE — Thursday, June 25:
- Thursday brings the Federal Reserve's preferred inflation gauge, the core PCE price index. The latest reading was encouraging, with monthly core prices rising just 0.2%, below the 0.3% that economists expected, even as the annual rate held at 3.3%. A cooler monthly pace is a positive signal for investors, as continued moderation would support the case for the Federal Reserve to ease policy later this year.
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Source: U.S. Bureau of Economic Analysis (June 18, 2026)
- U.S. Economic Growth, GDP — Thursday, June 25:
- Thursday also delivers the final reading on first-quarter U.S. economic growth. The economy expanded at an annualized 1.6%, a solid acceleration from 0.5% in the prior quarter, led by robust business investment that included a 17.2% jump in equipment spending. For investors, steady growth alongside cooling inflation is an encouraging combination that supports both corporate earnings and a constructive market backdrop.
Source: U.S. Bureau of Economic Analysis (June 18, 2026)
Sources: Bloomberg (June 18, 2026), Optimize Asset Management (June 18, 2026), U.S. Bureau of Economic Analysis (June 18, 2026), Statistics Canada (June 18, 2026)
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.