Weekly Roundup - How Markets Respond to Geopolitical Events, Chasing Hot Sectors, Liberals' Re-Election Promises for Canadian Retirees, Canadian Retirees Surveyed

Weekly Roundup: June 20, 2025

Welcome back to this week’s edition of our roundup. This week we look at several important charts and articles that help put current events into context and offer a reminder of the value of a steady long-term investment strategy.

1. How Markets React to Major Geopolitical Events

With increased tensions in the Middle East between Iran and Israel, it’s natural for investors to worry about their portfolios. Our lead chart looks at the historical performance of the S&P 500 after major geopolitical events going back to 1940.

The data show that, while short-term reactions can be mixed, over 12 months the market is higher roughly 65% of the time. That’s close to the 73% historical average for any one-year period. Key takeaway: Even though these events can feel unsettling, long-term investors have historically been well-served by staying invested.

2. Sector Performance Rotation

Our next chart, from Dimensional Fund Advisors, ranks U.S. sectors by their yearly returns from 2015 to 2024. This visual shows that leadership rotates often — yesterday’s winner can quickly become tomorrow’s laggard. Key takeaway: This reinforces why diversification is so important. Chasing last year’s top sectors is risky. A balanced, long-term, low-cost portfolio can help you capture the broad market return without relying on predicting winners.

3. Financial Stress Among Canadians

Finally, we review survey data published in the Globe and Mail that explores Canadians’ financial sentiment. More people report feeling anxious or fearful about their finances compared to 2024 — often driven by geopolitical and economic uncertainty. However, most respondents have kept their savings plans unchanged, and some have even increased contributions. Key takeaway: Anxiety is common — regardless of income or wealth — but sticking to a plan, avoiding impulsive changes, and talking with an advisor or a trusted friend can help keep emotions in check.

Have questions? Feel free to reach out anytime — I’m here to help you navigate these uncertain times. Thanks for reading, and I look forward to speaking with you next week.

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was written, designed and produced by Mark Walhout, CFP®, an Investment Funds Advisor with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc.The information contained in this article 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 securities.

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