2025 in review through 10 key charts

06 January 2026 by CIO Office

Asset allocation strategy - January 2026

Highlights

In keeping with tradition, we're taking advantage of this special January edition to look back at the key events of 2025 through 10 key charts.

In 2025, financial markets had to contend with an unpredictable environment, exemplified by (1) the saga of U.S. tariffs which, in early April, rose to such high levels that they triggered (2) a period of severe volatility, with the S&P 500 posting one of its worst weeks in history.

Fortunately, (3) fears of a significant rise in inflation caused by tariffs did not materialize, (4) allowing the Federal Reserve to deliver the expected rate cuts. This environment (5) was favourable for equities, which ended with above-average gains for their third consecutive year.

On our side of the border, tariffs certainly did not help (6) the Canadian labour market, which has been experiencing a period of relative weakness. To support the economy, (7) the Bank of Canada continued to cut its policy rate, but this had little impact on fixed income returns as long-term bond yields remained unchanged.

Paradoxically, (8) it was Canadian equities that benefitted from this backdrop, with the S&P/TSX recording one of its best years ever (9), largely thanks to gold miners. But (10) nothing truly compares to the rise of Nvidia, the AI leader whose market capitalization would rank third in the world if the company were a country, behind only the United States and Japan.

Happy reading and best wishes for the new year!

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2025 in review through 10 key charts

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