One of the recurring challenges in writing our <\/span>quarterly commentary is that by the time it <\/span>reaches publication, parts already feel dated. <\/span>This feels especially pronounced today as the <\/span>pace of change appears to be accelerating.<\/span><\/p>\n After the S&P 500 declined by roughly 10 <\/span>percent by the end of March, it took just 11 <\/span>trading sessions to fully recover \u2014 among the <\/span>fastest recoveries on record. As one market <\/span>observer noted, \u201cfor situation monitors, the <\/em><\/span>whiplash is a thing to behold\u2026for everyone <\/span><\/em>else, they may not have even noticed<\/em>.\u201d More <\/span>notable was the speed at which the narrative <\/span>reversed. By late March, many big-tech <\/span>valuations appeared more fairly valued; by <\/span>late April, they again appeared stretched.<\/span><\/p>\n The increasing frequency of such rapid shifts <\/span>raises a broader question: Does this reflect a <\/span>changing market regime?<\/span><\/p>\n Part of the explanation may lie in how <\/span>the investing landscape itself has evolved <\/span>over recent decades. Information is now <\/span>disseminated globally in seconds. Combined <\/span>with trading automation and declining <\/span>transaction costs, this has contributed to a <\/span>significant increase in market activity. In the\u00a0 late <\/span>1980s, the New York Stock Exchange averaged <\/span>around 500 million shares traded daily; by 2020, <\/span>this figure had doubled to over one billion.1<\/sup><\/span><\/p>\n Participation has also become democratized. <\/span>Building a diversified portfolio once required <\/span>meaningful capital. Today, internet access <\/span>and low-cost, diversified products have <\/span>lowered barriers to entry. In 1990, equity and <\/span>investment fund units represented just six <\/span>percent of Canadian household assets. In <\/span>2025, they accounted for over 25 percent.2 <\/sup><\/span>This has also influenced investor behaviour. <\/span>The average holding period for a stock, once <\/span>spanning years, is now measured in months.<\/span><\/p>\n At the same time, market structure has <\/span>shifted. What many may not realize is that <\/span>the public company universe has contracted. <\/span>U.S.-listed\u00a0 companies have halved from <\/span>about 8,000 in 1997 to 4,000 today.3<\/sup> Yet <\/span>global market capitalization has expanded <\/span>from about $50 trillion in 2011 to over $140 trillion today, with the rise of dominant U.S. and Asian corporates.4<\/sup> Despite the shrinking public company universe, the range of investment products has expanded significantly. ETFs and derivatives now allow far more robust portfolio construction. Private equity and other alternatives, once largely reserved for institutions and ultra-high-net-worth investors, are more broadly accessible. Meanwhile, even as total market values have risen, capital sitting on the sidelines has grown. U.S. money market funds have doubled to $8.2 trillion from their $4 trillion pandemic levels.5 <\/sup><\/span><\/p>\n Taken together, these shifts raise important questions: how should markets behave in an environment defined by faster information flow, lower barriers to entry, broader investor participation, yet fewer public companies and deeper sidelined liquidity? Do these changes imply a permanent shift in market behaviour? Are today\u2019s valuations a reflection of these forces in action? It is plausible that markets have entered a period where sharper but shorter bursts of volatility and rapid narrative reversals become more common. Perhaps the anatomy of future bull and bear markets At the same time, it\u2019s important not to lose sight of the broader context. If you invested $100,000 in the S&P\/TSX Composite Index 30 years ago, it would have grown to over $1.4M today.* Markets may evolve and narratives may shift, but long-term wealth creation has remained remarkably consistent. Indeed, it may be the golden age of investing, where more investors participate in one of the greatest wealth-creation periods in financial history. <\/span><\/p>\n A personal note: Just as we\u2019ve stepped back from the headlines for this commentary, we hope you, too, will find time to step away *With reinvested dividends. Jevons Effect (Jevons Paradox, \u201cJee-vons\u201d):<\/span><\/strong> In 1865, British economist William Jevons observed a seeming <\/span>paradox with the rise of the steam engine and its effect on coal <\/span>consumption. As coal use became more efficient, he expected total <\/span>coal consumption to decline. Instead, it surged. This observation <\/span>remains relevant to the world around us.<\/span><\/p>\n Will the Middle East Conflict Reshape Global Energy Strategy?<\/span><\/strong><\/p>\n In the spring, the Strait of Hormuz exposed the risks of routing <\/span>roughly 20 percent of global supply through a single chokepoint. <\/span>The resulting disruptions not only drove fossil fuel prices sharply <\/span>higher but reinforced a broader reality: energy security is <\/span>inseparable from national security. This has raised the question of <\/span>whether it will accelerate a structural shift in global energy strategy.<\/span><\/p>\n Indeed, recent developments have prompted many nations to <\/span>revisit their energy policies, including renewed interest in alternative <\/span>sources aimed at reducing dependence on imported fossil fuels. <\/span>However, expectations of a rapid decline in fossil fuel use may be <\/span>overly optimistic. Even as efficiency improves, total oil demand has <\/span>proven resilient \u2014 an outcome consistent with the Jevons effect. <\/span>Today, while energy use per unit of GDP has declined over two <\/span>decades, total energy consumption has not. Global oil consumption <\/span>now exceeds 100 million barrels per day, up from around 60 million <\/span>just half a century ago. In the U.S., per capita energy use has only <\/span>declined at around half the pace of efficiency gains.1<\/sup><\/span><\/p>\n What Jevons May Explain About Artificial Intelligence (AI)<\/span><\/strong><\/p>\n This same effect may also apply to the evolving technological landscape. Given the rapid advancement of AI, there has been significant debate over whether it will replace labour. However, some economists argue that a Jevons-style dynamic is more likely: as the cost of AI-powered cognition falls, the total market for human intelligence may <\/span>expand.2<\/sup> For example, as AI makes professional services, such as legal work, accounting, consulting and financial analysis, cheaper and more efficient, overall demand could increase. Some studies already show that AI-exposed industries continue to see job and wage growth, suggesting that productivity gains may be complementing workers rather than replacing them. At the same time, certain entry-level roles, particularly for recent graduates, appear to be under pressure.<\/span><\/p>\n Of course, technological inflection points have always reshaped <\/span>labour markets, with some jobs being displaced. Yet history also <\/span>reminds us that new jobs are created and others augmented. <\/span>For instance, when ATMs were introduced, many predicted the <\/span>end of bank tellers. While teller roles initially declined per branch, <\/span>ATMs reduced operating costs and enabled banks to open more <\/span>branches. Similarly, in healthcare, advances in medical imaging <\/span>raised concerns about radiologists becoming obsolete. Instead, <\/span>imaging demand increased substantially due to lower costs and<\/span> 1. https:\/\/www.eia.gov\/todayinenergy\/detail.php?id=48976<\/span> As the front-page story highlighted, the investing landscape has changed dramatically over recent decades. Here are four ways:<\/span><\/p>\n 1.<\/strong> Holding periods have become shorter<\/strong> \u2014 The average holding period of shares has fallen from roughly 8 years in the 1970s to just 7 months today. Automated exchanges have led to the rise of high-frequency trading using computer algorithms to analyze and execute trades. Retail investors have also become more active due to <\/span>online trading platforms.<\/span><\/p>\n 2. Public markets have shrunk<\/strong> \u2014 The number of publicly listed companies has declined by roughly 50 percent since the mid-1990s, largely in favour of private markets.2<\/sup><\/span><\/p>\n 3. Equity market participation has grown<\/strong> \u2014 Lower barriers to entry have democratized participation. Canada has the second highest equity market participation 4. Equities account for a greater share of wealth<\/strong> \u2014 Alongside rising equity participation, Canadian household wealth has reached new highs. As the saying goes, \u201ca rising tide lifts all boats.\u201c<\/p>\n 1. Based on TOTMKUS Index; holding <\/span>period = 1\/turnover ratio; https:\/\/www.<\/span>cibc.com\/content\/dam\/cibc-public-assets\/asset-management\/pdfs\/short-term-orientationof-<\/span>equity-market-en.pdf#<\/span> In 2025, 41 percent of first-time homebuyers received down payment <\/span>gifts averaging $74,570, highlighting the significant <\/span>role family members play in helping the next generation enter <\/span>the housing market.1 For many high-net-worth families, there is <\/span>value in seeing wealth put to use during one\u2019s lifetime. However, <\/span>support can take many forms, each carrying different tax and <\/span>family law implications. When there are multiple children, it may <\/span>also be important to consider how financial assistance to one <\/span>child may affect fairness among siblings, and revisit an estate <\/span>plan accordingly.<\/span><\/p>\n Here are five ways to structure support and related considerations:<\/span><\/p>\n Provide a Gift<\/strong> \u2014 When providing a financial gift to a child, you <\/span>relinquish ownership and control of those funds. As a result, <\/span>there\u2019s a risk that funds won\u2019t be used for a home purchase, <\/span>or could become subject to division in the event of a future <\/span>relationship breakdown, depending on how the purchase is <\/span>structured. While Canada does not impose a gift tax (unlike the <\/span>U.S.), liquidating investments to fund a gift may trigger taxable<\/span> Leverage Tax-Advantaged Accounts<\/strong> \u2014 Rather than providing <\/span>a large lump sum gift, consider planning ahead through smaller <\/span>contributions over time to help a child maximize tax-advantaged <\/span>accounts. Both the First Home Savings Account (FHSA) and <\/span>Registered Retirement Savings Plan (RRSP) provide tax advantages <\/span>through tax-deductible contributions. The FHSA is particularly <\/span>compelling because investment growth is tax-free and qualifying <\/span>withdrawals to purchase a first home are also tax-free. Under the <\/span>RRSP Home Buyers\u2019 Plan (HBP), withdrawals of up to $60,000 can<\/span> Loan Funds<\/strong> \u2014 Instead of an outright <\/span>gift, funds may be advanced as a <\/span>loan, with or without interest. A <\/span>formal loan agreement should clearly <\/span>set out repayment terms to avoid <\/span>future misunderstandings. Proper <\/span>documentation may help preserve <\/span>the characterization of funds as a <\/span>loan in the event of a relationship <\/span>breakdown.* If desired, the loan can <\/span>later be forgiven.<\/span><\/p>\n Co-Own a Property<\/strong> \u2014 While co-owning a property may help <\/span>protect your interest in the event of a relationship breakdown, if you <\/span>already own another property, the share of any future appreciation <\/span>may be subject to capital gains tax upon sale or disposition.<\/span><\/p>\n Supporting a child\u2019s home purchase is a significant and generous <\/span>act. Since each form of support carries different financial, tax and <\/span>family law implications, thoughtful planning can help ensure the <\/span>outcome aligns with your intentions. For a deeper discussion, <\/span>please call.<\/span><\/p>\n *The effectiveness of the loan in protecting against division in the event of a relationship<\/span> 1. https:\/\/www.cmhc-schl.gc.ca\/professionals\/housing-markets-data-and-research\/<\/span> As the saying goes, \u201cGive the man a fish, and you feed him for a day; teach the man to fish, and you feed him for a lifetime. \u201dThe same principle applies to financial literacy. Small lessons introduced early, including something as simple as filing a tax return, can create habits and opportunities that benefit young people for years to come.<\/span><\/p>\n Is there a teen in your family, perhaps a (grand)child, niece or nephew, working during the summer or part-time after school? Helping them file a tax return can be a simple but powerful way to begin building long-term wealth while introducing financial habits early in life.<\/span><\/p>\n Many teens choose not to file a tax return if their income falls below the federal basic personal amount, which is $16,452 for 2026. What is often overlooked, however, is that even modest earnings can generate valuable Registered Retirement Savings Plan (RRSP) contribution room.<\/span><\/p>\n
\n<\/span><\/p>\n
\nwill also differ from those of the past. <\/span><\/p>\n
\nthis summer. We remain here taking care of things on your behalf and are available should\u00a0<\/span>you require assistance. Enjoy the sun!
\n<\/span><\/p>\n
\n1. www.visualcapitalist.com\/the-decline-of-long-term-investing\/
\n2.https:\/\/www.nbc.ca\/content\/dam\/bnc\/taux-analyses\/analyseeco\/
\nmkt-view\/market_view_250313.pdf
\n3. https:\/\/data.worldbank.org\/indicator\/CM.MKT.LDOM.NO?locations=US
\n4. https:\/\/en.wikipedia.org\/wiki\/Market_capitalization<\/span><\/p>\n![](\"https:\/\/advisor.wellington-altus.ca\/catalyst\/wp-content\/uploads\/sites\/137\/2026\/07\/Summer-2026-in-this-issue-1.png\")
<\/p>\n
\nTHE INTERSECTION OF OIL & ARTIFICIALINTELLIGENCE<\/span>
\nWhat Jevons Paradox Tells Us About the World Around Us<\/span><\/h1>\n
\nAn economic theory suggesting that efficiency gains can increase, <\/span>rather than reduce, total consumption.<\/span><\/strong><\/em><\/p>\n
\nan aging population, and radiologists continue to be essential for <\/span>interpreting and integrating results.<\/span><\/p>\n
\n2. https:\/\/www.apollo.com\/wealth\/the-daily-spark\/the-jevons-employment-effect-from-ai<\/span><\/p>\n
\nCHANGE IS IMMINENT: FOUR GRAPHICS
\nThe Difference 30 Years Makes: How the Investing Landscape Has Changed<\/span><\/h1>\n![](\"https:\/\/advisor.wellington-altus.ca\/catalyst\/wp-content\/uploads\/sites\/137\/2026\/07\/Summer-2026-graph-1.png\")
<\/p>\n![](\"https:\/\/advisor.wellington-altus.ca\/catalyst\/wp-content\/uploads\/sites\/137\/2026\/07\/Summer-2026-graph-2.png\")
<\/p>\n
\nglobally, at roughly 50 percent of households. The U.S. leads at 55 percent, with Australia ranking third at 37 percent.3<\/sup><\/p>\n![\"\"](\"https:\/\/advisor.wellington-altus.ca\/catalyst\/wp-content\/uploads\/sites\/137\/2026\/07\/Summer-2026-graph-3-300x158.png\")
<\/p>\n![](\"https:\/\/advisor.wellington-altus.ca\/catalyst\/wp-content\/uploads\/sites\/137\/2026\/07\/Summer-2026-graph-4-3.png\")
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\n2. https:\/\/data.worldbank.org\/indicator\/CM.MKT.LDOM.NO?locations=US; https:\/\/www.<\/span>apolloacademy.com\/public-equity-markets-have-changed-why-do-portfolios-still-look-the-same\/<\/span>
\n3. www.visualcapitalist.com\/ranked-top-countries-by-stock-market-ownership\/; https:\/\/www.<\/span>cbc.ca\/news\/business\/survey-says-almost-half-of-canadian-adults-own-stocks-1.208778<\/span>
\n4. https:\/\/www.nbc.ca\/content\/dam\/bnc\/taux-analyses\/analyse-eco\/mkt-view\/market_<\/span>view_250313.pdf<\/span><\/p>\n
\nHOUSING SEASON IS BACK IN FULL SWING
\nHelping (Grand)Kids Buy a Home: Five Ways to Structure Support<\/span><\/h1>\n
\ncapital gains or other taxable income.<\/span><\/p>\n
\nbe made tax-free (subject to repayment) for the purchase of a first <\/span>home. Beyond the significant tax advantages, these accounts can <\/span>help reinforce the value of saving and longer-term investing.<\/span><\/p>\n![\"\"](\"https:\/\/advisor.wellington-altus.ca\/catalyst\/wp-content\/uploads\/sites\/137\/2026\/07\/Summer-2026-graph-key-300x275.png\")
Co-Sign the Mortgage<\/strong> \u2014 This may help children qualify for a larger <\/span>mortgage, secure more favourable borrowing terms or enter the <\/span>market when they might not otherwise qualify. However, a cosigner <\/span>is legally responsible for the debt if the borrower defaults. <\/span>The arrangement can also affect the co-signer\u2019s credit rating and <\/span>borrowing capacity. In addition, trust reporting requirements may <\/span>apply where the co-signer is required to be registered on title.<\/span><\/p>\n
\nbreakdown may vary by jurisdiction and a family law lawyer should be consulted. This<\/span>
\narticle is not intended to be a definitive analysis of family law.<\/span><\/p>\n
\nhousing-research\/surveys\/mortgage-consumer-surveys\/2025-mortgage-consumer-survey<\/span><\/p>\n
\nSUMMER JOB? BUILD RRSP CONTRIBUTION ROOM & AETIREMENT NEST EGG<\/span>
\nA Case Study: Why Help a (Grand)Child File a Tax Return?<\/span><\/h1>\n