Market review 2025 and outlook for 2026

Last year ended on a positive note. The markets finished 2025 much as they started, posting strong gains that built on the successes of the prior two years. This result is particularly encouraging given the ongoing concerns surrounding the tariffs imposed by the Trump administration. 

Stock markets posted returns in excess of 10-20%, reflecting broad-based resilience. In Canada, performance was even more remarkable: the Canadian market ended the year with a gain of 31%, boosted by a sharp rise in the price of gold. This was one of the best years in recent decades. 

These favourable conditions had a positive impact on the performance of Kaleido RESPs in the fourth quarter. 

Market outlook for 2026 

Three elements will be particularly important to watch this year. 

1. The economic context: The impact of tariffs continue to create uncertainty. The unemployment rate and industrial output will be decisive in assessing the economic trajectory.
2. Geopolitical risks: Geopolitical tensions could prompt investors to adopt a more cautious approach, which could influence market behaviour.
3. Market valuation: It is important to bear in mind that some of the growth in 2025 is based on more speculative factors, such as artificial intelligence and rising gold prices.

These factors will need to be closely monitored to assess the sustainability of current valuation methods. Jean‑Stéphane Parent, Vice‑President and Chief of Marketing and Investment at Kaleido, discusses this topic.