"Our favourite holding period is forever." – Warren Buffett, 1988 Berkshire Hathaway Shareholder Letter
Last Week’s Overview
| Index |
Performance |
| TSX Composite |
-0.45% |
| Dow Jones |
1.32%
|
| S&P 500 |
-1.04% |
| NASDAQ |
-2.64% |
Source: Bloomberg (October 22, 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.
Layoffs Stay Low as the U.S. Job Market Holds Steady
New claims for U.S. unemployment benefits fell by 6,000 to 194,000 for the week ending October 17, better than the 200,000 economists expected. While businesses are being more careful about adding new staff, they are holding on to the workers they have, and the share of insured workers receiving benefits stayed at just 1.1%. For investors, steady employment supports household spending and company earnings, and it gives the Federal Reserve room to adjust interest rates gradually, a healthy backdrop for both the stocks and bonds in our portfolios.
Source: Bloomberg (October 23, 2026)
Bonds Bounce Back as the 10-Year Treasury Yield Dips Below 5%
U.S. government bonds rallied this week as the 10-year Treasury yield slipped below 5%, with yields across most maturities falling by as much as 0.16 percentage points to their lowest levels in nearly a month. Because bond prices rise when yields fall, a Bloomberg measure of Treasury returns is now up about 1.2% in October as investors looked for steady income and stability. With yields still high compared with much of the past decade, quality bonds offer meaningful income today plus the potential for price gains if rates ease, which is why they remain an important stabilizer in our portfolios.
Source: Bloomberg (October 23, 2026)
Meta's $825 Billion Commitment Shows the Scale of AI Investment
Meta Platforms disclosed about $825 billion in future spending commitments (up from nearly $700 billion in July) covering data centres, energy agreements, cloud computing capacity, and hardware over roughly the next decade. These are long-term contracts and lease obligations spread over many years rather than money spent all at once, but they show that artificial intelligence has become one of the biggest drivers of business investment. The opportunity reaches well beyond the largest tech companies to the businesses that supply chips, cloud services, power, and data centre construction, and we continue to focus on companies with strong balance sheets and lasting advantages that are positioned to benefit.
Source: Bloomberg (October 23, 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: Accenture Plc (ACN)
- Accenture was our top performer last week, rising 11.77% as investors recognized its role in helping large businesses move to the cloud and put artificial intelligence to work. Recent figures show revenue growth of 6.2% and earnings growth of 40.8%, while its share price remains reasonably valued relative to the profits analysts expect it to earn next year. As companies keep investing to modernize their technology, Accenture is well placed as a trusted partner, which is exactly the kind of steady, long-term growth story we look for.
- Source: Optimize Asset Management (October 23, 2026)
- Sector Highlight: Financials
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Financials led our portfolio last week, with gains spread across Canadian banks, insurers, asset managers, and investment banks rather than depending on a single company. Royal Bank of Canada and Toronto-Dominion Bank built on strong years, up 23.34% and 38.96% year to date, while Fairfax Financial rose 8.72% and BlackRock gained 7.06% for the week. Financial companies earn money in many different ways, from lending to managing investments, which makes them a valuable complement to our technology holdings and helps keep our portfolios balanced.
- Source: Optimize Asset Management (October 23, 2026)
- Style Highlight: Quality
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Our Quality strategy, which focuses on established businesses with lasting competitive advantages and dependable revenue, was our strongest style last week. BlackRock, Berkshire Hathaway, Visa, Automatic Data Processing (ADP), and Salesforce led the way, with Visa and ADP each up more than 4% for the week and more than 18% so far this year. These companies tend to keep earning steadily when the economy shifts, and owning a diversified group of them helps us balance long-term growth with a smoother ride through market ups and downs.
Source: Optimize Asset Management (October 23, 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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- Bank of Canada Interest Rate Decision (Wednesday, October 28): The Bank of Canada announces its next interest rate decision on Wednesday, after holding its key rate at 2.25% in September as markets expected. At that meeting, the bank noted a broad recovery in Canada's economy in the second quarter and said underlying inflation has held near its target, though it also flagged a greater risk of higher inflation ahead. The bank's message will matter for Canadian borrowing costs, bond prices, and bank earnings, and we will be watching closely for any change in tone.
Source: Bank of Canada (October 23, 2026)-
- U.S. Federal Reserve Interest Rate Decision (Wednesday, October 28): The Federal Reserve wraps up its two-day meeting on Wednesday, announcing its rate decision at 2:00 p.m. ET followed by a press conference at 2:30 p.m. ET. Investors will be looking for clues about the path of U.S. interest rates, especially after recent data showed steady employment and signs of easing inflation. The Fed's message can move both stock and bond markets, and a steady, predictable approach would support the balanced environment our portfolios are positioned for.
Source: Federal Reserve (October 23, 2026)
- U.S. Core PCE Inflation (Thursday, October 29): Thursday brings the core PCE price index, the Federal Reserve's preferred measure of underlying inflation, which leaves out more volatile food and energy prices. In its latest reading for August, core PCE rose 0.2% for the month and 3.0% over the past year, both lower than expected, showing price increases are slowing even though they remain above the Fed's 2% target. Another softer reading would strengthen the case that inflation is moving in the right direction, which tends to support both bond prices and stock valuations.
Source: U.S. Bureau of Economic Analysis (October 23, 2026)
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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.