You’ve probably noticed that markets feel like they are unusually calm lately, despite all of the geopolitical uncertainty that lingers. Is this market upside backed up by economic strength or is this just an empty bubble waiting to burst?

 

Let’s jump right in:

 

Table of contents:

• Petrov Commentary
• Market Snapshot
• Economic Snapshot
• Video of the Month : Spousal Loan Strategy

Petrov Commentary

 

Volatility has fallen, major indices are hovering near all-time highs even though headlines are constantly telling us the world is falling apart. Many still carry the emotional scars from the past few years. A pandemic, inflation, political noise, wars and so on.

Investors are torn between the fear of missing out on the opportunities while simultaneously being afraid of a market pullback. The truth is: markets often climb the wall of worry.

 

The generalized anxiety around investing is a healthy counter-balance against potential overvaluation and investors have not lost all perception of risk. In other words, today’s prices account for the current information and current sentiment in a balanced manner, in my opinion.

Periods of calm don’t mean nothing is happening, they often mean investors have already priced in most of the bad news. I remind my clients often: Peace of mind in investing doesn’t come from predicting the next storm (you can’t), it comes from knowing your ship can handle it. In other words, I take all the precautions upfront so there won’t be a need to react when volatility strikes again. I invest in the highest quality businesses in each sector, I limit exposure to each position, each sector and each asset class.

 

What’s really happening in the economy:

 

1. Inflation is cooling

• Headline inflation in Canada recently slowed to 1.9% year over year, which is its lowest since 2021.
• Core inflation (excluding volatile food and energy prices) are at 2.6%.
• This makes way for Central Banks and the Fed to potentially lower interest rates.   

 

2. Growth is steady, but not spectacular

• Canada’s GDP grew 2.2% in early 2025.
• Canada’s unemployment rate: 7.1% in September 2025.
• The IMF now projects global growth of approximately 3.2%, showing steady but moderate progress worldwide.

 

3. The US economy continues to surprise

• US growth has remained stronger than many expected, with real GDP expanding (net of inflation) around 2.5%-2.7% in 2025.
• US unemployment rate: 4.3% in August 2025.
• Tariffs have not affected the US economy as much as expected so far.

As I mentioned in my last newsletter, the US market is currently highly concentrated in a handful of tech names and I think this is where excess risk lies. While we may enjoy rising markets, do not allow such levels of concentration in your portfolio.

 

The Petrov Wealth Management Group’s approach is simple: own quality, control risk upfront, and keep emotions out of decision-making.

 

Our clients have been successful through various periods of volatility already. Whatever will come next will likely feel different, but the principles we will apply will not change and we will continue to succeed.

 

-Alex

 

Market Snapshot

Source Factset : November 5th 2025 at 10:45am

 

Economic Snapshot

US

 

Canada

 

Video of the month: Spousal Loan Strategy

 

 

If someone you care about has been anxious about their investments lately or can benefit from thoughtful financial planning, feel free to share this note. It might help them see things more clearly.