“I’ve just returned from a short trip to Portugal. Whenever I’m away, I try to unplug from the noise—no market quotes, no checking portfolios—just time with family. That time is important, especially knowing that by the time our kids hit adulthood, we’ve already spent the majority of our lifetime hours with them. Trips like these are a good reminder that life comes first, markets second.

That said, even when I’m not actively checking, I can’t completely escape what’s going on. Notifications still pop up, headlines still appear, and I knew markets were having a volatile week. There were a few red days, followed by a strong relief rally when it became clear the US government shutdown would be resolved. This kind of pattern is normal and exactly what we talked about in my most recent webinar.

Why We Saw a Quick Rally Followed by a Pullback

During a government shutdown, money still comes in, but not much goes out. Payments don’t flow, wages aren’t issued, and government spending pauses. That temporarily removes liquidity from the financial system. When the shutdown ends, that liquidity gets released all at once—like a beach ball held underwater finally popping up. We saw that one happened when it became increasing evident that the shutdown days were numbered.

Interestingly, when the shutdown officially ended, markets fell. Classic “buy the rumor, sell the news.” The rally happened before the announcement; the pullback came after.

What’s Driving the Volatility Now?

Two main factors:

1. Valuations

This year’s market has been driven by strong liquidity and heavy investment into AI-related sectors. Valuations are getting stretched in places. Some private-company valuations—OpenAI being the clearest example—are difficult to justify. This has given investors an excuse to take some profits.

2. Uncertainty Around Inflation Data

Because of the shutdown, the US government couldn’t collect the normal CPI survey data and said the upcoming inflation print would be “tainted.” Markets didn’t like that. Rate-cut expectations depend heavily on these numbers, and uncertainty tends to create short-term selling.

Personally, I don’t put much weight on the CPI process. It’s backwards-looking, survey-based, frequently revised, and doesn’t reflect real-time digital data that’s readily available from private sources. But the headline spooked markets for a day because anything that clouds the outlook for rate cuts tends to trigger volatility in tech and other rate-sensitive sectors.

The Bigger Picture: Nothing Has Actually Changed

Despite the headlines, the underlying story is the same:

• Liquidity remains strong.

• A shutdown resolution typically unlocks additional spending and back pay.

• Inflation uncertainty is temporary and not reflective of reality.

• Markets often sell off on noisy news and then stabilize.

We saw exactly that: an ugly day, followed by a mostly green day (as of 9 a.m. Friday). No structural damage, no shift in fundamentals.

Our Positioning

Our portfolios are already built with this kind of short-term volatility in mind. Nothing in the past week changes our broader strategy or the long-term thesis. Markets continue to respond to liquidity, earnings, and economic momentum—not to one missing CPI print.

Bottom Line

This was normal market behaviour around a noisy news event. No major fundamentals have changed. We continue to stay the course.”

To watch Mark’s CBC Halloween special regarding “spooking” financial habits please click here

He also discussed “The Art of Spending Money” by Morgan Housal, his favourite person finance author which can be heard here.

Hope you find these helpful. As always, feel free to reach out with any questions or thoughts.

 Best regards,

 Mark, Leanne, and James

 Book an appointment with Mark:  https://calendly.com/mark-ting

 Book an appointment with Leanne:  https://calendly.com/leanne-brothers

 Book an appointment with James:  https://calendly.com/james-pelmore

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