“The single greatest edge an investor can have is a long-term orientation..” - Seth Klarman
Last Week’s Overview
| Index | Performance |
| TSX Composite | 0.35% |
| Dow Jones |
0.88% |
| S&P 500 | 1.70% |
| NASDAQ | 2.21% |
Source: Bloomberg (July 2, 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.
Markets Rise as Steady Jobs Data Supports a Stable Outlook
U.S. stocks moved higher after June's employment report, with the unemployment rate improving to 4.2% and hiring settling into a steadier pace. Investors welcomed the balance in the data, which supports a more stable interest-rate outlook and lets attention return to corporate earnings and long-term growth. For our portfolios, a calmer rate environment is constructive for both quality equities and investment-grade bonds, reinforcing our focus on well-positioned companies in areas like technology and infrastructure.
Source: Bloomberg (July 2, 2026)
A Healthy Job Market Settles Into a Sustainable Pace
June's report reflected a healthy labour market moving toward a sustainable pace rather than a slowdown, with payrolls up 57,000, layoffs still historically low, and wages growing a solid 3.5% year over year. Steady sectors like healthcare, manufacturing, and construction continued to add jobs, while ongoing investment in data centres and digital infrastructure supported activity. This kind of balanced backdrop helps ease price pressures while allowing growth to continue, which we view as supportive for the quality businesses we hold.
Source: Bloomberg (July 2, 2026)
Microsoft Doubles Down on Helping Businesses Adopt AI
Microsoft announced a new team of roughly 6,000 employees focused on helping businesses put artificial intelligence to work in their day-to-day operations. This marks an encouraging shift in AI from early experimentation toward practical, measurable results across industries, expanding the opportunity well beyond chipmakers into software, cloud, and services. We see this maturing phase of AI adoption as a durable, long-term driver that can support earnings and productivity for the technology companies we own.
Source: Bloomberg (July 2, 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: Meta Platforms Inc. (META)
- Meta Platforms was our top contributor last week, advancing 9.91% as investor enthusiasm around artificial intelligence and digital advertising continued to build. The company is benefiting from its expanding AI capabilities and improving monetization across its advertising platforms, while disciplined spending and strong earnings momentum support the case for sustained revenue growth. Meta's leadership in AI innovation positions it to capitalize on long-term digital advertising and engagement trends, reinforcing an attractive long-term outlook.
- Top Sector: Consumer Discretionary
Consumer Discretionary led our performance last week as investors grew more confident that a healthy job market and easing inflation would keep supporting household spending. Standout contributors included Tesla (up 13.25%) and Amazon, reflecting strength in brands with pricing power and strong digital capabilities, while expectations for potentially lower rates later this year add another tailwind. We continue to favour high-quality consumer franchises that can grow earnings across a range of economic conditions, rather than depending on any single backdrop. - Top Quant Strategy: Size
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Our Size strategy was the week's strongest driver, as large, well-established companies once again outpaced smaller peers. Mega-cap leaders like Tesla, Microsoft, Meta, Alphabet, and Amazon contributed the most, each benefiting from strong balance sheets, durable earnings, and meaningful exposure to artificial intelligence. While rich valuations call for selectivity, we continue to see institutional money favouring proven, structurally growing large-cap leaders, which supports our positioning.
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.
- Federal Reserve Commentary on Inflation and Rates (Wednesday, July 8): On Wednesday, commentary from the Federal Reserve will be in focus as officials reaffirm their commitment to bringing inflation back to the 2% target. The Fed held interest rates steady at its last meeting and has emphasized that future decisions will be guided by incoming economic data rather than a preset path. Clear communication helps set expectations for the months ahead and can influence both stock and bond markets, particularly around the timing of any future rate moves.
Sources: Federal Reserve (July 2, 2026)- U.S. Existing Home Sales (Thursday, July 9): Thursday brings the latest look at U.S. existing home sales, a useful gauge of housing activity and broader economic momentum. The most recent reading showed sales rising 3.2% to an annualized pace of 4.17 million. This was a stronger rebound than expected, with inventory reaching its highest level in 10 months. Housing is an important economic driver, so we'll watch Thursday's update to see whether this positive momentum continues, as it often provides early clues about the direction of the economy.
Source: National Association of Realtors (July 2, 2026)- Canadian Unemployment Rate (Friday, July 10): On Friday, we turn to Canada's employment report for a fresh read on the domestic job market. The latest reading was encouraging, with the unemployment rate falling to 6.6%, its lowest since January. Meanwhile, the economy added a strong 87,800 jobs, the sharpest monthly gain since December 2024. This resilience points to steady household income and continued consumer spending, reinforcing our confidence in quality domestic holdings and the constructive backdrop we're seeing across North America.
Source: Statistics Canada (July 2, 2026)
Sources: Bloomberg (July 2, 2026), National Association of Realtors (July 2, 2026), Statistics Canada (July 2, 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.