Q3 2026 Market Update

The third quarter was another reminder that markets rarely move in a straight line, and that successful investing is less about predicting the next headline and more about building portfolios designed to handle different environments.

U.S. markets finished Q3 modestly higher, with the S&P 500 gaining roughly 2% and the technology-heavy Nasdaq approximately 2.5%. Much of that strength continued to come from large technology companies and enthusiasm surrounding artificial intelligence. At the same time, other areas of the market faced greater pressure from higher interest rates and rising energy prices.

The bond market had a more difficult quarter. Long-term U.S. government bond yields increased sharply as investors reassessed inflation, government borrowing and the outlook for interest rates. The U.S. Federal Reserve increased its policy rate by 0.25% in September, while the Bank of Canada maintained its rate at 2.25%.

Canada continues to face its own mix of opportunities and challenges. Economic growth has improved, but trade uncertainty, energy prices and inflation remain important considerations. The Bank of Canada has emphasized that while inflation excluding gasoline has been relatively contained, higher energy prices and tariffs remain risks to the outlook.

What does this mean for Aspire portfolios?

Periods like this reinforce why we build portfolios the way we do.

We don’t build portfolios around what we believe will outperform over the next three months. Instead, we start with your financial plan, including your retirement income needs, timeframe, risk tolerance and long-term objectives. From there, we construct a portfolio designed to support that plan.

That means maintaining diversification across Canadian, U.S. and global equities, fixed income and other complementary asset classes, rather than concentrating portfolios in whichever investment happens to be performing best today.

It also means recognizing that different investments have different jobs. Equities provide long-term growth. Fixed income can provide income, stability and diversification. Cash and more conservative investments can help fund near-term spending needs, particularly for retired clients, without requiring investments to be sold during periods of market weakness.

Most importantly, we rebalance rather than react. Markets will continually move between optimism and uncertainty. Our role is to keep your portfolio aligned with your financial plan while making disciplined adjustments when opportunities or risks change.

Looking Ahead

Heading into Q4, we continue to watch inflation, interest rates, geopolitical developments, corporate earnings and the increasingly concentrated leadership of global equity markets.

There will always be another market headline. Our focus remains much more consistent: own quality investments, diversify broadly, manage risk and make investment decisions within the context of your complete financial plan.

That disciplined approach is central to how we manage wealth at Aspire Wealth Group, and why we believe a well-built financial plan should drive the portfolio, rather than the other way around.