Heart Wealth Insights – October 2026 Newsletter
Back Row: Sophia Sparanese, Cameron Gregory, Chad Katunar, Samuel Della Monica, Lily Benhumea | Front Row: Pam Katunar, April Dorey Hartwig
Navigating Markets Together • Building Legacies That Matter
Thanksgiving is one of our favourite times of the year to write to you. Whether this reaches you before the turkey or just after, we hope the weekend brings a full table, good company and some distance from the headlines. Since our July letter, trade tensions with the United States have escalated, conflict in the Middle East has kept energy prices elevated, and longer-term borrowing costs have risen. Yet Canadian and U.S. share markets have remained resilient. That contrast—strong markets alongside a less certain economy—is a reminder of why sound planning matters more than reacting to each headline.
Fall Market Snapshot
Markets have delivered gains this year, even as September brought renewed volatility.
| Indicator | As of June 30, 2026 |
|---|---|
| S&P/TSX Composite | +13.0% year to date, total return, to September 30; -2.6% in September |
| S&P 500 |
+12.7% year to date, total return, to September 30 |
| Bank of Canada overnight rate | 2.25% following the September 2 decision |
| Canada 10-year government bond | Approximately 3.9% yield in early October |
| Canadian Inflation | 3.0% year over year in August (2.4% excluding gasoline) |
| Canadian unemployment | 6.5% in September; employment declined about 68,000 |
| Canadian dollar | Approximately US$0.70 in early October |
Sources: Raymond James Ltd. Insights & Strategies, October 2026; Statistics Canada; Bank of Canada.
What matters beneath the numbers. The labour market is cooling, and inflation remains above the Bank of Canada's target. At the same time, energy and materials have supported Canadian markets, while large technology companies continue to influence U.S. index performance. We are watching portfolio concentration and the cost of capital rather than trying to forecast the next market move.
Our approach: prepare rather than predict
After several strong years, some portfolios naturally become more equity-heavy—or more concentrated in individual sectors. We are reviewing exposures and rebalancing where appropriate, based on your income needs, objectives and tolerance for risk.
Rebalance thoughtfully. Trim positions that have moved well above their intended allocation, while retaining businesses we continue to believe in.
Rebuild reliable income. Consider Annuities, Guaranteed Investment Certificates (GICs), high-quality bonds, short-term Treasury Bills and High Interest Savings for cash reserves.
Protect near-term spending. If you are drawing on your portfolio, we generally seek to match foreseeable withdrawals with appropriately lower-volatility assets. This reduces the chance of having to sell equities in a downturn.
