VOLATILITY RETURNS
Volatility reurns to the financial world, disrupting investments according to TD Senior Investment Advisor, Demo Dovolos.
A summaof what he writes:
- Markets got bumpy again in early 2026 — not just stocks, but politics too, with more global conflict making investors nervous.
- Scared investors bought gold and silver (seen as “safe” during uncertainty), while the U.S. dollar got weaker.
- Some tech stocks dropped even though the companies earned good money, because investors worried they were spending too much on AI.
- The big trade deal between the U.S., Mexico, and Canada (USMCA) is under threat. This matters a lot because about 20% of Canada’s economy depends on selling stuff to the U.S.
- Most experts think the deal will survive in some form, since fully ending it would hurt everyone — causing higher prices, job losses, and disruption.
- Even a worst-case scenario wouldn’t be a total disaster. Canada’s economy would shrink about 1.8% — bad, but Canada survived much worse in the 1980s and bounced back.
- Canada has real strengths: tons of natural resources, energy, fresh water, three coastlines, and one of the most educated populations in the world.
- The main investing lesson: markets always go up and down, and nothing stays calm forever — so spreading your money across different investments (“diversification”) is essential, not optional.
- Stay disciplined but flexible. Sticking to a plan while adjusting as things change is how investors get through rough patches.
- Bottom line: the road ahead may be tricky, but Canada has the tools and toughness to handle it.
The full piece:
