November Market Update: Reasons for Optimism, but Expect Some Bumps Along the Way

Stock markets have continued to demonstrate resilience in 2026

supported by healthy corporate earnings and optimism about the longer-term outlook for businesses. While there are certainly reasons to remain positive, investors should also be prepared for continued volatility.

The good news is that corporate earnings remain strong. Much of the attention over the past few years has focused on artificial intelligence and a handful of large technology companies. However, earnings growth is beginning to broaden beyond these companies, which is an encouraging development for the overall market.Another positive is that recent market gains have been supported by improving corporate profits rather than simply investors being willing to pay higher prices for stocks. Although valuations remain elevated in some areas, opportunities are emerging in companies and sectors that have been overlooked.

Closer to home, the Canadian economy has shown some encouraging resilience, although inflation remains a concern. On October 28, the Bank of Canada raised its benchmark interest rate from 2.25% to 2.50%, its first increase in more than three years. The Bank cited persistent inflation, higher energy prices and stronger-than-expected economic activity, while indicating that further rate increases may be necessary.

Uncertainty surrounding Canada–U.S. trade relations remains another challenge. Despite these concerns, Canadian equities have performed well this year, with the TSX reaching approximately 36,265 points in late October. For investors, these developments reinforce the importance of balancing growth opportunities with income-producing investments and managing risk.

One of the biggest changes in today's markets is how quickly investor sentiment can shift. Technology, value stocks, commodities and other sectors can move in and out of favour surprisingly quickly. Increased trading activity leveraged investment products and automated trading strategies have contributed to these rapid changes. Interestingly, even when the overall stock market appears relatively calm, individual stocks can experience significant price swings. This can create both risks and opportunities.

Looking ahead, the outlook for corporate earnings remains constructive, although growth may moderate in 2027 as companies compare their results against particularly strong earnings in 2026. Slower earnings growth doesn't necessarily mean declining profits or falling markets.

What Does This Mean for Investors?

‍We continue to believe that maintaining a diversified portfolio and taking a disciplined, balanced approach is particularly important in this environment. Rather than trying to predict which sector will perform best next, we favour holding a thoughtful mix of investments and making adjustments as opportunities arise.

Market volatility is a normal part of investing, and periods of uncertainty can also create opportunities. Our focus remains on managing risk, identifying opportunities and ensuring your investments continue to support your longer-term financial goals. Successful investing isn't about reacting to every market headline. It's about having a plan and staying focused on what matters most to you.

^{This information has been prepared by Laura Chanin who is an Investment Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor and Portfolio Manager can open accounts only in the provinces in which they are registered.}

^{iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and a business name under which iA Private Wealth Inc. operate}