{"id":685,"date":"2026-10-07T16:34:45","date_gmt":"2026-10-07T20:34:45","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/?p=685"},"modified":"2026-10-08T15:28:46","modified_gmt":"2026-10-08T19:28:46","slug":"685-2","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/685-2\/","title":{"rendered":"Market Insights"},"content":{"rendered":"

The U.S. Federal Reserve <\/span>(Fed) <\/span>raised interest rates by 25 basis points<\/span> (bps)<\/span> in September,<\/span> marking <\/span>its<\/span> first<\/span> rate <\/span>hike<\/span> since <\/span>July <\/span>2023,<\/span> as inflation remains persistently above target<\/span>.<\/span> While inflation has reaccelerated, we believe <\/span>the recent pressure may prove transitory, reflecting highe<\/span>r food and energy prices stemming from the conflict <\/span>in the Middle East<\/span>, tariffs and<\/span> the<\/span> broader deglobalization trend.<\/span> A<\/span>s of<\/span> October 5<\/span>th<\/sup><\/span>, markets <\/span>are pricing in roughly an 80% probability that rates remain unchanged at the October meeting.<\/span><\/p>\n

Against th<\/span>is<\/span> backdrop<\/span>,<\/span> U.S. <\/span>economic activity<\/span> remains <\/span>resilient,<\/span> with forward-looking indicators pointing to <\/span>continued expansion<\/span> across both manufacturing and services<\/span> sectors<\/span>.<\/span> W<\/span>e<\/span> maintain a <\/span>constructive<\/span> outlook on U.S. equities<\/span>, supported<\/span> by continued economic growth<\/span> and strong earnings growth<\/span>, w<\/span>hile recognizing<\/span> that further increases in interest rates could create near-term pressure <\/span>on <\/span>more rate-sensitive<\/span> equities.<\/span><\/p>\n

Moving north of the border, Canadian equities<\/span> have <\/span>broadly <\/span>kept pace with U.S. <\/span>equities<\/span> year-to-date<\/span> (YTD)<\/span>.<\/span> Recent data reaffirm our view of a broadening recovery in Canada\u2019s economy<\/span>:<\/span><\/p>\n

\n
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\u00b7<\/span>\u00a0<\/span>Economic activity is strengthening following a soft start to the year<\/span>.<\/span><\/div>\n<\/div>\n
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\u00b7<\/span>\u00a0<\/span>S<\/span>tubborn inflation remains driven by higher energy prices<\/span>.<\/span><\/div>\n<\/div>\n
\n
\u00b7<\/span>\u00a0<\/span>Unemployment<\/span> remains <\/span>near recent lows, pointing to a stabilizing labour market.<\/span><\/div>\n<\/div>\n<\/div>\n

W<\/span>e maintain <\/span>modest <\/span>exposure to Canadian equities<\/span> a<\/span>s<\/span> the underlying economic fundamentals <\/span>remain supportive<\/span>. <\/span>However, <\/span>upside risks to inflation and continued tariff uncertainty could challenge t<\/span>he<\/span> durability <\/span>of Canada\u2019s economic recovery.<\/span> In September, t<\/span>he Bank of Canada (BoC) <\/span>held its policy rate unchanged at <\/span>2.25%<\/span>, with<\/span> most Canadian banks expec<\/span>ting rates to remain on<\/span> hold through <\/span>year-end<\/span>.<\/span><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

The U.S. Federal Reserve (Fed) raised interest rates by 25 basis points (bps) in September, marking its first rate hike since July 2023, as inflation remains persistently above target. While inflation has reaccelerated, we believe the recent pressure may prove transitory, reflecting higher food and energy prices stemming from the conflict in the Middle East, […]<\/p>\n","protected":false},"author":193,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-685","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/posts\/685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/users\/193"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/comments?post=685"}],"version-history":[{"count":4,"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/posts\/685\/revisions"}],"predecessor-version":[{"id":699,"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/posts\/685\/revisions\/699"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/media?parent=685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/categories?post=685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/lauerbrotherspw\/wp-json\/wp\/v2\/tags?post=685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}