Good Morning,
I hope August is treating you well, and you’re enjoying the hazy days summer!
The other day, my daughter Presley-Mae said something to me while we were on a little summer walk, “Dad…August feels like one long Sunday.”
Quick the insightful observation for a 13 year old. It stopped me…and certainly made me think.
Kids have a way of distilling an entire season into a single sentence. Before our curiosity was diluted by our calendars, we too could feel the weight and lightness of time without checking our phones.
She’s right…August does seem to carry that bittersweet tension. Like a Sunday, it’s both an exhale and a reminder: the season is not endless. The mornings feel slower, the evenings are golden, but you can sense the shift in the air.
My little chat with Presley made me think of a few lessons August, and children, can remind us of:
Savor the in-between. Sundays aren’t about racing into Monday, and August isn’t just a runway to September. The value is in this stretch of time.
Stay curious. Kids notice what we’ve stopped seeing, the way the sun hits the water, the smell after a summer storm. What we call “small” is often the main event.
Don’t rush the ending. Whether it’s the last day of vacation or the final weeks of summer, hurrying through means missing the best part—being in it.
As John Lubbock wrote, “Rest is not idleness, and to lie sometimes on the grass… listening to the murmur of water, or watching the clouds float across the sky, is hardly a waste of time.”
Markets have their own Augusts, periods where the cycle feels late, the next turn is coming, but there’s still opportunity in the now. This summer has been anything but quiet:
- Earnings Season: The second-quarter reporting period is in full swing, with results broadly exceeding expectations. Strength from several of the “Magnificent 7” tech giants, along with solid showings in Financials, has lifted projected S&P 500 earnings growth. Yet, management commentary is more mixed, some sectors remain cautious, reflecting differences in trade exposure, consumer trends, and currency impacts.
- Trade Developments: Tariff policy has been a tale of escalation and détente. Recent weeks brought higher U.S. duties on certain Canadian exports, renewed tensions with India, but also new bilateral agreements with the EU, Japan, and South Korea. Negotiations with China point to a possible extension of the tariff truce, and Mexico secured a temporary reprieve from new U.S. tariffs.
- Macro Picture: In the U.S., July’s jobs report fell short of expectations, and service-sector activity stalled, prompting markets to price in a potential Fed rate cut as early as next month. In Canada, the Bank of Canada held rates steady at 2.75% for the third consecutive meeting, navigating between sticky core inflation and softer economic data.
Much like August, markets are in a moment that’s both full and fleeting. Strong corporate results and constructive trade progress are cause for cautious optimism, but valuations remain elevated and expectations high. The discipline now is to stay present…capturing what’s available today, while being ready for the turns ahead.
As Presley-Mae reminded me, sometimes the smartest thing you can do is treat August like a Sunday: slow down, pay attention, and let the moment do its work before you turn the page.
Action for the Week
As we cruise into the days ahead, take ten quiet minutes to notice the in-between moments….on your commute, during your morning coffee, or between meetings. Ask yourself:
- What am I overlooking that deserves my attention?
- Where am I rushing to the next thing without finishing this one?
- What small thing today will I wish I’d savored tomorrow?
In life and in markets, awareness is the first investment, and the one that compounds the most.
“Enjoy the little things, for one day you may look back and realize they were the big things.”
- Robert Brault
Be well and enjoy the moments,
Derek Henderson