Summary
Markets have been volatile so far this year, shaped by several competing forces unfolding at the same time. According to Blair Setford, Assistant Vice‑President, Product Management at Canada Life Investment Management, investors have had to navigate shifting leadership in equity markets, evolving trade policy, and heightened geopolitical risk—all against a backdrop of inflation and growth uncertainty.
Equities rebounded sharply at the end of March as oil prices retreated, driven by optimism that the U.S.-led conflict with Iran—which had disrupted global energy supplies—may be moving toward resolution. Earlier in the year, however, large technology stocks that led markets in 2025 came under pressure following fourth‑quarter earnings and scrutiny around rising artificial intelligence spending. Trade policy also re‑emerged as a market concern after a U.S. Supreme Court ruling paved the way for a broad 10% tariff on imports.
Both stocks and bonds declined over the quarter as inflation concerns intensified and growth expectations softened. Investors reduced exposure to areas that had performed well earlier, including gold and emerging markets, while the U.S. dollar strengthened. Commodity markets stood out as the exception, with oil and gas prices surging after damage to energy infrastructure and disruptions to shipping through the Strait of Hormuz, pushing crude oil to its largest monthly gain in decades.
Bond markets were particularly volatile as energy-driven inflation fears shifted expectations from rate cuts to potential rate hikes, though slowing growth remains a key concern for central banks. In this environment, Blair emphasizes the importance of diversification. High‑quality bonds may still provide stability, while re‑priced equity sectors—including technology—could offer renewed opportunities if geopolitical tensions ease.
As always, investors are encouraged to review their portfolios with a financial advisor to ensure they remain aligned with long‑term goals and risk tolerance.
The content of this material (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.
This material may contain forward-looking information that reflects our or third-party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and not place undue reliance on forward-looking information. Please consider these and other factors carefully and not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of April 13, 2026. There should be no expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.
Canada Life Investment Management and design are trademarks of The Canada Life Assurance Company. Investment Planning Counsel and the Investment Planning Counsel logo are trademarks of Investment Planning Counsel Inc.
