Steady Bonds, Big Tech Leadership, and a Big Week for Inflation Data

“The real key to making money in stocks is not to get scared out of them”  - Peter Lynch

Last Week’s Overview

Source: Bloomberg (Aug 5, 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.

Treasury Keeps Its Borrowing Plan Steady

The U.S. Treasury will keep the size of its regular bond auctions unchanged, leaning on short-term bills to cover rising financing needs. For investors, that steady supply of government bonds should keep yields on high-quality fixed income attractive. With the Federal Reserve weighing inflation against a slowing economy, this is exactly the environment where owning a diversified mix of quality bonds may pay off, giving portfolios both reliable income potential and a stabilizing anchor.

Source: Bloomberg (August 6, 2026)

The Job Market Shows Signs of Softening

Job openings eased to 7.36 million in June from 7.54 million, while hiring picked up and layoffs stayed low. This shift in momentum signals employers are becoming more selective rather than pulling back sharply, pointing to an economy adjusting to higher interest rates. While employers are becoming noticeably more selective, this cooling in labour demand gives the Federal Reserve the justification it needs to consider lowering interest rates, a move that tends to benefit both stocks and bonds.

Source: Bloomberg (August 6, 2026)

Apple's India Push Shows Supply Chains Being Redrawn

Apple has significantly expanded its manufacturing in India, part of a multi-year effort to build more products outside of China with help from government incentives and its partners. This reflects a broad trend we're watching closely: large companies are spreading out operations to make supply chains more resilient and reduce geopolitical risk. For long-term investors, these shifts create fresh opportunities across technology, industrials, and emerging markets, and it is one more reason we favour companies with the scale and flexibility to lead through that change.

 Source: Bloomberg (August 6, 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.

• Company Highlight: Alphabet Inc. (GOOG)
  
  
• Alphabet, the parent company of Google, gained 7.26% last week as the market rewarded companies showing real results from their AI investments. Its Google Cloud business is growing on AI demand, and new AI features are now built directly into Search and its Workspace tools. Investors were also encouraged by disciplined spending and improving profitability. With leadership across search, cloud, and digital advertising, a strong balance sheet, and a reasonable valuation next to other tech giants, Alphabet has multiple ways to turn AI innovation into revenue, which is exactly why we own it.
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• Source: Optimize Asset Management (Aug 6 2026)

• Sector Highlight: Information Technology
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• Information Technology was our leading sector, and the strength was broad. Microsoft and NVIDIA led the way, with semiconductor equipment makers Broadcom and ASML also contributing. The story is simple: strong earnings, steady cloud demand, and heavy investment in the infrastructure that powers AI. These companies share qualities we value, including sturdy balance sheets, recurring cash flows, and long-term growth trends. We're mindful that valuations are elevated and returns have been concentrated among a few leaders, which is why we focus on established, cash-generating businesses best positioned to benefit as companies everywhere adopt AI.
  
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• Source: Optimize Asset Management (Aug 6, 2026)
  

• Quant Strategy Highlight: Size
  
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• Our Size strategy, which tilts toward large, well-established companies, was our strongest performer. Giants like NVIDIA, Amazon, Alphabet, and Caterpillar all delivered impressive gains. There is a good reason investors keep favouring these companies: durable earnings, strong cash generation, and the financial firepower to keep investing no matter the economic backdrop. That scale is especially valuable in uncertain times, giving these businesses resilience smaller competitors lack. This is the kind of quality leadership we want anchoring portfolios.

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  Source: Optimize Asset Management (Aug 6, 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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• Consumer Price Index (Inflation), (Wednesday, August 12): Wednesday delivers the headline event of the week ahead: the Consumer Price Index, which measures how quickly everyday consumer prices are rising. The most recent reading showed inflation easing to 3.5% over the past year, down from 4.2% the month before. It matters because inflation sits at the centre of the Fed's rate decisions. A continued cooldown would give the Fed more confidence to consider cutting rates, which tends to support both stocks and bonds.
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  Source: U.S. Bureau of Labor Statistics (August 6, 2026)
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• Producer Price Index (Thursday, August 13): Thursday brings the Producer Price Index, which tracks the prices businesses pay before those costs reach store shelves. Think of it as an early preview of where consumer inflation may head next. Steady or falling costs support company profit margins, while rising costs can squeeze them. Coming right after Wednesday's report, it helps complete the inflation picture the Fed is studying as it weighs its next move.
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  Source: U.S. Bureau of Labor Statistics (August 6, 2026)
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• Retail Sales, Friday (August 14): Friday closes the week with the July retail sales report, a direct read on how much Americans are spending across stores, restaurants, and online. The most recent reading showed spending up a modest 0.2% in June and about 6.7% higher than a year ago, steady growth that points to a resilient consumer. It matters because consumer spending drives roughly two-thirds of the U.S. economy, making this one of the clearest signals of momentum. For our portfolios, healthy spending supports the revenues and earnings of the quality, consumer-facing companies we favour.
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  Source: U.S. Census Bureau (August 6, 2026)

Source of All Economic Data:  Bloomberg, U.S. Bureau of Labor Statistics, U.S. Census Bureau

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.