January 2026 Update
Jan 23, 2026
Market Update
Here is a recap of the most recent stock market performance:
| Year | Canada | US | Europe | Emerging Markets | World |
| 2025 | 30.94% | 17.75% | 21.32% | 32.06% | 18.94% |
| 2025 Q4 | 6.25% | 2.42% | 6.16% | 5.68% | 3.46% |
| 2025 Q3 | 12.08% | 8.12% | 3.93% | 12.49% | 7.59% |
| 2025 Q2 | 8.45% | 11.36% | 3.37% | 8.13% | 6.67% |
| 2025 Q1 | 1.38% | -4.51% | 6.38% | 2.73% | -2.57% |
| 2024 | 22.97% | 25.08% | 8.43% | 13.70% | 21.57% |
| 2023 | 13.31% | 27.10% | 15.04% | 10.29% | 23.75% |
| 2022 | -5.78% | -19.46% | -7.97% | -15.16% | -15.62% |
| 2021 | 25.79% | 26.97% | 23.32% | 0.14% | 24.71% |
| 2020 | 4.35% | 21.37% | -1.71% | 19.50% | 14.06% |
| 2019 | 22.00% | 31.64% | 24.57% | 18.51% | 28.07%% |
| 2018 | -9.04% | -4.50% | -10.02% | -9.72% | -6.86% |
| 2017 | 9.22% | 21.90% | 13.72% | 31.00% | 19.13% |
| 2016 | 21.15% | 11.61% | 7.90% | 10.11% | 9.65% |
| 2015 | -8.36% | 1.32% | 5.45% | -5.40% | 2.65% |
| 2014 | 11.43% | 13.36% | 5.22% | 5.57% | 10.40% |
| 2013 | 13.58% | 32.61% | 22.26% | 3.79% | 29.57% |
Source: MSCI gross returns including dividends, all returns in local currency, to December 31, 2025
Equities in Emerging Markets and Canada ended the 2025 calendar year with significantly outsized returns relative to other parts of the world, despite strong performance across the board (in local currency).
The Bank of Canada ended the year with its benchmark interest rate at 2.25%, having lowered it by a total of 1% over the course of the year. It now appears less likely that rates will drop further as we move into the first half of 2026.
The U.S. Federal Reserve ended the year with its overnight interest rate at 3.75%, having lowered it by a total of 0.75% in 2025. The Fed is still expected to lower rates further this year, though not likely at its January 28th meeting.
So far, it appears many of the dominant themes of 2025 are continuing into 2026. These include market volatility driven by political uncertainty and tariffs, sticky inflation, investment in artificial intelligence, diversification of reserve currencies, and a shifting economic landscape. For Canada specifically, the review of the CUSMA agreement with the US and Mexico will be a major focus this year.
What does all this mean for you? It means your regular review should remain a priority. Ensuring we are fully up to date allows us to continue to plan appropriately for you and adjust your portfolio as needed; this is especially important with regard to any cash flow or spending needs you have (or expect to have) within the next year or two.
As always, thank you for the trust you put in our firm. If you have any questions or concerns, please feel free to contact us.
Sincerely,
Anne Hammond
BA CIM CFP CEA
Financial Advisor & Portfolio Manager
T 604 732 6551
Planning Team
| Carly O’Connell, BA Financial Planning Associate Direct: 604-737-6752 [email protected] | Lorraine Watson Executive Assistant Direct: 604-737-6787 [email protected] |
Anne Hammond is a Financial Advisor with RGF Integrated Wealth Management. The views expressed are those of the author and not necessarily those of RGF Integrated Wealth Management, which makes no representations as to their completeness or accuracy.
© 2026 RGF Integrated Wealth Management. Ltd., RGF Wealth Management. Ltd., Member – Canadian Investor Protection Fund
Tax Planning
Tax planning can be also complex and hard to understand, because everyone's situation is unique. Below, we look at different financial situations and how we'd suggest each person proceed to get the most favorable result.
Learn More
