Stock market swings test investor nerves. Learn how to protect your portfolio with smart diversification, safe havens, and long-term financial planning.

Wild Market Swings Test Investors—Here’s How to Stay Grounded

The global financial markets have been on a rollercoaster ride—and investors are gripping the safety bar tighter than ever.

From tariffs to tweets, shifting interest rates to commodity surges, the uncertainty triggered by political and economic headlines is making investment planning more challenging and more necessary than ever. Investors are asking: Where is it safe to put my money now?

Let’s unpack what’s behind the volatility, where to park your funds depending on your financial timeline, and which investment strategies can provide peace of mind amid the chaos.

Political Whiplash and Market Reaction: The Perfect Storm

In recent weeks, markets have been reacting dramatically to statements from U.S. President Donald Trump, particularly around tariffs and trade policies. Entire indexes have soared or plummeted based on a single tweet or comment.

At one point, the Dow Jones Industrial Average shifted more than 1,000 points in a single day, fueled by uncertainty around global trade, economic stability, and interest rate direction.

From gold prices touching record highs to sudden dips in the U.S. dollar and rising bond yields, the investment landscape has rarely looked more erratic.

“Uncertainty is the enemy of investment,” said Gabriel Lalonde, a certified financial planner based in Ottawa. “But that doesn’t mean there aren’t ways to protect yourself.”

Timing is Everything: Short-Term Needs Require Stability

If you’re planning a major expense in the near future—whether it’s a home purchase, vehicle upgrade, or university tuition—you should think twice about placing that money in the stock market.

Safe Options for Near-Term Goals

According to Lalonde, safety should trump returns for short-term goals. Options like:

• High-interest savings accounts
• Term deposits
• Guaranteed Investment Certificates (GICs)

These instruments might not deliver eye-popping returns, but they preserve capital, which is key if you know you’ll need the money soon.

“It’s not about making money fast—it’s about having the money when you need it,” Lalonde said.

Emotional Investing: Why Planning Trumps Panic

Volatility can trigger fear, and fear leads to reactive decisions—often at the wrong time. The classic mistake? Selling off investments during a dip, locking in losses that may have recovered with time.

Avoiding Emotional Traps

Lalonde emphasizes that your reaction to market fluctuations can reveal more about your financial planning gaps than the market itself.

“If someone’s first instinct is to sell everything on a red day, the problem may not be the market—it may be a plan that wasn’t built to handle volatility.”

The solution? A well-pressure-tested financial plan that considers not just your goals, but your risk tolerance and emotional responses to market events.

Diversification: Your Best Defense Against Market Madness

According to Graham Priest, a portfolio manager at BlueShore Financial in British Columbia, diversification remains the most time-tested method of insulating your portfolio from unpredictable market shocks.

Asset Mix That Stands the Test of Time

A diversified portfolio balances different asset types so that when one asset class stumbles, others may offer stability or growth. Consider including:

• Consumer staples stocks (e.g., groceries, household goods)
• Utilities stocks
• Dividend-paying equities
• Government and corporate bonds

“Consumer staples and utilities can hold their value better during economic slowdowns,” Priest notes. “They might not shoot the lights out, but they offer resilience.”

Still, there’s a catch: sectors like utilities have underperformed compared to high-growth sectors like tech in recent years.

Bonds: Not Risk-Free, But Still Relevant

Despite their reputation as “safe” investments, bonds come with their own set of risks, particularly when interest rates are fluctuating.

The Bond Balancing Act

When interest rates rise, bond prices fall—a fact that caught many investors off guard in 2022. This means that if you need to sell a bond before it matures, you could incur a loss.

Additionally, there’s always the risk of issuer default, particularly in lower-rated or corporate bonds.

“Bonds are still an important part of a diversified strategy,” Priest says. “But investors need to understand the dynamics, especially in a rising-rate environment.”

Gold: Glittering Safe Haven or Fool’s Gold?

Gold has surged to record highs recently, making it a tempting refuge for those spooked by equity market chaos. But is it the right move?

Gold’s Role in a Balanced Portfolio

Gold typically has a low correlation with both stocks and bonds, making it a useful diversification tool. It can act as a hedge during inflation or geopolitical uncertainty.

But like other commodities, gold can be volatile and speculative if not balanced properly within a portfolio.

“Gold is a smart component in a broader strategy—but it shouldn’t be the whole strategy,” Priest cautions.

Investor Psychology: Why Support Systems Matter

Even seasoned investors can be shaken during uncertain times. Financial planners say that sometimes, clients don’t need new products—they just need reassurance that their long-term plan is on track.

“Planning is key in these times,” Lalonde explains. “We help clients zoom out and look at the bigger picture, not just today’s headlines.”

What to Do Right Now: Practical Action Steps

If the recent market swings have you worried, here’s what financial professionals recommend doing immediately:

1. Review Your Time Horizon
   Are you investing for a house in two years—or retirement in 20? The answer should shape your strategy.

2. Reassess Your Risk Tolerance
   If recent volatility kept you up at night, your portfolio might be misaligned with your comfort level.

3. Talk to a Financial Planner
   Even a one-time consultation can provide clarity and calm your nerves.

4. Avoid Panic Selling
   Reacting emotionally to short-term dips can sabotage your long-term returns.

5. Rebalance Your Portfolio
   Make sure you’re not overexposed to high-risk sectors or underexposed to defensive assets like bonds or cash equivalents.

Long-Term Outlook: Market Storms Pass, Plans Prevail

History shows that markets go through cycles—bull runs, corrections, recessions, and recoveries. Trying to time the market is a fool’s errand, even for professionals.

“Long-term success doesn’t come from reacting to noise—it comes from sticking to a disciplined plan,” Priest says.

Conclusion: Volatility is the Norm, Not the Exception

As global markets continue to react to policy changes, economic indicators, and unpredictable geopolitical events, the best tool an investor can have isn’t a crystal ball—it’s a clear, adaptable plan.

Whether you’re investing for a short-term goal or building long-term wealth, make decisions from a place of confidence, not fear.

Stay diversified. Stay calm. Stay invested.

Got a tax review notice from the CRA? Experts say it’s common and manageable. Learn what triggers a review and how to respond with confidence.

Don’t Panic If the CRA Flags Your Tax Return—Here’s What to Do

Discovering that your tax return is under review can feel like the financial equivalent of a fire alarm. Your heart races, you start second-guessing every line item, and panic sets in—especially if you’ve already mentally spent that refund.

But before you hit full-blown stress mode, tax experts say there’s no need to panic. A tax review by the Canada Revenue Agency (CRA) isn’t the same as an audit—and in most cases, it’s a routine check, not a red flag of wrongdoing.

Let’s break down what a tax review is, why it happens, and most importantly, how you can handle it with confidence and calm.

Why Is Your Return Being Reviewed?

According to the CRA, around three million Canadians receive tax review letters every year. These reviews are usually triggered not by suspicion but by routine checks or specific claim types.

“A lot of these reviews are automatically generated,” explains Sean Grant-Young, National Tax Director at Baker Tilly Canada. “It could be just bad luck or something slightly unusual on your return.”

Common red flags that might trigger a CRA review include:

• First-time or large claims for medical expenses
• Moving costs
• Large interest deductions
• Unusual income patterns (especially for self-employed or gig economy workers)

Some reviews are purely random, while others may be due to inconsistencies in the data provided.

“Taxpayers with a history of filing errors or frequent adjustments are also more likely to be flagged,” notes Charles Drouin, a CRA spokesperson.

Review vs. Audit: What’s the Difference?

A CRA review is not the same as a tax audit. While a review involves a request for additional information to verify your claims, an audit is a deeper and more comprehensive investigation into your entire financial picture.

In other words, a review is more like a double-check, not a deep dive.

“Generally, if your claims are legitimate and your paperwork is in order, there’s nothing to worry about,” says Grant-Young.

What to Do If You Receive a Review Notice

If you receive that dreaded envelope or email, don’t toss it aside or ignore it. Here’s a step-by-step guide on how to respond appropriately and avoid any negative outcomes.

1. Read the Letter Carefully

The CRA’s review notice will clearly state what information or documents they need. It might request supporting receipts for medical expenses or proof of moving costs. Understanding exactly what’s being asked is the first crucial step.

2. Gather Supporting Documents

Once you know what’s required, collect all relevant documentation. This may include:

• Receipts and bills
• T4 or T5 slips
• Donation receipts
• Bank statements
• Lease agreements (for moving expenses)

“Be thorough,” says Grant-Young. “Gather everything that directly supports the claim in question.”

Pro Tip: Organize Your Submission Like a Pro

Rather than sending the CRA a messy stack of documents, take the time to make your submission organized and easy to interpret. This can help your review process move more quickly and smoothly.

Here’s how:

• Include a summary page outlining what’s in the package.
• Highlight or circle important numbers or dates.
• Label each document clearly (e.g., “Medical Receipt – January 2024”).

If your submission runs 20 pages long, make sure the first page acts like a table of contents. Don’t give the CRA any reason to miss or misinterpret something.

Timing Matters: Don’t Miss the Deadline

The CRA generally gives you 30 days to respond to a review notice. If that timeline is too tight, you can call to request an extension—but do it before the deadline.

Missing the deadline can lead to your return being reassessed without your input, which could result in losing deductions or being forced to repay part of your refund.

“Timeliness is just as important as accuracy,” Grant-Young warns.

What Happens If You Don’t Comply?

Ignoring the review letter—or failing to provide proper documentation—can have real financial consequences. If the CRA can’t verify your claims, they’re within their rights to deny the deduction, leading to:

• A reduction or loss of your tax refund
• A higher tax bill
• Interest charges on amounts owed

“If you can’t support that deduction, CRA doesn’t have to grant it,” says Grant-Young.

How to Minimize the Risk of a Review in Future

While there’s no surefire way to avoid a CRA review, you can reduce the likelihood by following best practices when filing:

Ensure accuracy
Double-check all numbers and make sure they match your T4s, T5s, and other slips exactly.

Stay organized
Keep all relevant receipts and documents in one place throughout the year—digitally or physically.

Don’t exaggerate claims
Only claim what you’re eligible for, and make sure deductions are well-supported.

File on time
Late filings can increase your chances of a review, particularly if you’ve had previous issues.

“It’s really about being accurate, organized, and honest,” says Drouin.

Special Considerations for Gig and Self-Employed Workers

Freelancers, gig workers, and small business owners are under increased scrutiny because of the complexity and variability of their income and deductions.

If you fall into this category:

• Be extra diligent in keeping records of income and expenses
• Use tax software that tracks your deductions automatically
• Consider consulting a tax professional for review before filing

What If You Made a Mistake?

If you realize you’ve made an error after receiving a CRA review notice, don’t try to cover it up. Transparency can go a long way in your favor.

“Submit a correction and include a note explaining the oversight,” suggests Grant-Young. “It’s better than ignoring the issue.”

The CRA may be lenient if you show that the mistake was unintentional and you’re making a good-faith effort to resolve it.

When to Get Professional Help

Most simple reviews can be handled by individuals, but if:

• You’ve received multiple review letters
• You don’t understand what’s being asked
• You’re unsure how to compile the documentation

… then it may be wise to contact a tax professional or accountant.

“Even one consultation could prevent a costly reassessment,” says Grant-Young.

Conclusion: Be Prepared, Not Panicked

A tax review letter from the CRA might feel intimidating, but it’s far more routine than it is threatening. Most reviews are simply checks to ensure tax credits and deductions are properly claimed and supported.

If you respond in a timely, thorough, and organized manner, your review will likely conclude without incident.

Remember: the CRA isn’t out to get you—it’s just trying to keep the system honest and fair for everyone. Stay calm, be accurate, and follow the process.

GM cuts production in Canada, Magna raises forecasts, and Apple warns of trade risks. Here’s how trade tensions are shaking up major industries.

GM Slashes Shift at Oshawa Plant: What It Means for Canadian Auto Jobs

In a move sending ripples through Canada’s automotive industry, General Motors (GM) has announced a major reduction in production at its Oshawa assembly plant in Ontario. The automaker will revert to a two-shift operation, citing a combination of “evolving trade dynamics” and anticipated drops in vehicle demand.

The shift cut marks a strategic pivot as GM seeks to strengthen its Canadian manufacturing footprint by focusing more on truck production for domestic markets. The company asserts this decision is part of a long-term strategy to align its resources with future consumer needs and global trade realities.

Yet, the announcement has been met with swift and fierce criticism from Unifor, the union representing approximately 3,000 employees at the Oshawa facility. Union leaders have labeled the decision as “reckless,” warning of its cascading impact across the region’s auto parts supplier network.

“This isn’t just about a single shift,” said one Unifor representative. “It’s about hundreds of families, local businesses, and the entire economic fabric of our community.”

GM has yet to clarify the exact number of jobs that will be affected by this scale-down. However, the broader implications are already beginning to materialize.

Canadian Auto Suppliers Breathe Easy as Tariff Exemption Continues

In a bit of welcome relief for Canada’s auto sector, U.S. Customs and Border Protection confirmed that Canadian auto parts compliant with the Canada-United States-Mexico Agreement (CUSMA) will remain exempt from the recently imposed 25% tariff on automotive imports.

Initially introduced by former U.S. President Donald Trump, the hefty tariff was expected to shake the very foundations of cross-border automotive trade. However, compliant Canadian parts will continue to enjoy a reprieve, at least for the near future.

Trade analysts had warned that attempting to selectively tariff non-American components would result in bureaucratic chaos, given that auto parts often cross the border several times during production.

“This is a sigh of relief for the industry,” noted a trade policy expert. “But the uncertainty isn’t over—just delayed.”

For now, Canada’s auto sector can continue operating with some measure of stability, even as geopolitical headwinds threaten future disruptions.

Magna International Ups Forecast Despite Global Headwinds

While uncertainty looms large over the broader automotive market, one Canadian company is bucking the trend. Magna International, one of the world’s leading auto parts manufacturers, has raised its full-year sales forecast.

The Ontario-based giant expects robust growth driven largely by increased vehicle production in Asia, though it also anticipates a modest dip in North American output.

Interestingly, Magna’s outlook doesn’t fully account for potential supply chain issues stemming from the very tariffs threatening other parts of the industry. CEO Swamy Kotagiri noted that improved profit margins and operational efficiency helped lift the company’s quarterly performance.

“We’re optimistic, but cautious,” said Kotagiri. “Our global footprint gives us resilience, but we’re closely monitoring trade developments.”

Despite the challenges, Magna’s ability to navigate global complexities with foresight and flexibility has positioned it as a standout performer in a volatile landscape.

Apple and Amazon Feel the Heat as Trade Tensions Mount

Tariffs aren’t just a problem for automakers—they’re hitting Silicon Valley, too. Tech giants Apple and Amazon both reported that trade tariffs and fears of a slowing global economy are weighing heavily on their profitability.

In their latest quarterly updates, the two companies issued cautious outlooks for the months ahead. Amazon CEO Andy Jassy highlighted that the company had seen early inventory purchases as vendors sought to avoid pending tariffs. However, growth from third-party sellers—long a key engine of Amazon’s e-commerce dominance—fell short of expectations.

Meanwhile, Apple CEO Tim Cook revealed that the company is doubling down on efforts to diversify its supply chain. Apple now plans to manufacture more iPhones in India and shift a larger share of chip sourcing to Taiwan Semiconductor, which is currently expanding operations in Arizona.

“The global tech supply chain is evolving rapidly,” said Cook. “We need to be nimble and strategic.”

As the U.S.-China trade relationship remains fraught with tension, both companies are clearly preparing for a more fragmented, regionalized future.

Aritzia Surprises with Soaring Profits

In a stark contrast to the cautious tone echoed across the auto and tech sectors, Vancouver-based fashion retailer Aritzia delivered unexpectedly strong financial results.

The company reported a whopping $99.6 million profit in its most recent quarter—a fourfold increase compared to the same period last year. Executives attributed the surge to better inventory management, fewer markdowns, and significantly reduced warehousing costs.

This financial windfall underscores the importance of agility in today’s retail environment, where supply chain optimization and pricing discipline can dramatically affect bottom lines.

“We’ve focused on fundamentals, and it’s paying off,” said Aritzia CFO Todd Ingledew. “Efficiency and brand strength are driving our growth.”

The Canadian fashion house continues to grow its footprint across North America, and these results could serve as a model for other retailers navigating post-pandemic consumer behavior and inflationary pressures.

The Bigger Picture: Canada’s Economic Crossroads

From cars and chips to cardigans, the stories unfolding this week paint a vivid picture of Canada’s economic tightrope. The country is being pulled in multiple directions: on one hand, it’s navigating an increasingly protectionist global trade environment; on the other, it’s seeing glimmers of resilience and opportunity among its top-performing businesses.

GM’s production cuts may foreshadow deeper challenges ahead, particularly if global trade disputes escalate or domestic demand falters. At the same time, Magna’s confidence and Aritzia’s booming profits suggest that well-run companies can still thrive—even in turbulent times.

Final Thoughts

This week’s developments serve as a timely reminder that Canadian businesses must remain both agile and adaptive. With shifting trade policies, evolving consumer preferences, and ongoing supply chain disruptions, standing still is not an option.

For workers in Oshawa, the coming months may be filled with uncertainty. But across boardrooms from Toronto to Vancouver, the strategy is clear: adapt fast, or get left behind.

In April 2025, the Bank of Canada maintained its policy rate at 2.75%, citing uncertainties from U.S. tariffs and their potential impact on the Canadian economy.

Introduction: A Delicate Balance in Uncertain Times

In April 2025, the Bank of Canada faced a pivotal decision: adjust interest rates in response to shifting economic indicators or maintain the status quo amidst escalating global trade tensions. Governor Tiff Macklem and the Bank’s governing council opted to keep the policy rate at 2.75%, pausing after seven consecutive cuts that began in June 2024. This decision underscores the complexities of navigating economic policy during periods of heightened uncertainty.

Economic Context: From Growth to Caution

Economic Performance in Early 2025

Canada’s economy entered 2025 on a solid footing. The fourth quarter of 2024 saw a robust 2.6% growth, bolstered by previous interest rate cuts that stimulated household spending and economic activity. Inflation remained close to the Bank’s 2% target, and employment figures were promising. However, the onset of 2025 brought new challenges.

Impact of U.S. Tariffs

The announcement of U.S. tariffs on Canadian goods introduced significant uncertainty. These protectionist measures disrupted markets, dampened business investment, and raised inflation expectations. The Bank of Canada recognized that while previous rate cuts were still influencing the economy, the emerging trade tensions could reverse some of the positive momentum.

Deliberations at the Bank of Canada

Internal Discussions: To Cut or Not to Cut?

In their April meeting, some members of the governing council advocated for a further 25 basis point rate cut, citing weakening economic indicators such as declining consumer and business confidence, and softening labor markets. However, others expressed caution, emphasizing the need for more information on the tariffs’ long-term effects. The council ultimately decided to maintain the current rate, opting to monitor the situation closely before making additional policy changes.

Scenarios Presented by the Bank

The Bank’s Monetary Policy Report outlined two potential scenarios:

1. Scenario One: A modest slowdown in growth without a recession, assuming tariffs are negotiated away.
2. Scenario Two: A more severe downturn, with a recession and inflation temporarily rising above 3%, assuming a full-blown trade war ensues.

These scenarios highlight the range of possible outcomes and the challenges the Bank faces in formulating policy in such an unpredictable environment.

Inflation Dynamics: Navigating Dual Pressures

Upward Pressures on Inflation

The imposition of tariffs and a weaker Canadian dollar have led to increased costs for imported goods, contributing to upward pressure on inflation. Businesses are also facing higher operational costs, which may be passed on to consumers.

Downward Pressures on Inflation

Conversely, the economic slowdown resulting from trade uncertainties is expected to dampen demand, which could exert downward pressure on inflation. The Bank of Canada is closely monitoring these opposing forces to ensure that inflation remains within target levels.

Monetary Policy Strategy: Caution and Flexibility

The Bank’s Approach

Governor Macklem emphasized that while monetary policy cannot resolve trade uncertainties or offset the impacts of a trade war, it can maintain price stability. The Bank is committed to supporting economic growth while ensuring that inflation remains well-controlled.

Forward Guidance

Given the prevailing uncertainties, the Bank has refrained from providing specific forward guidance. Instead, it will continue to assess incoming data and adjust its policy stance as necessary to respond to evolving economic conditions.

Market Reactions and Broader Implications

Currency Movements

Despite the Bank’s cautious stance, the Canadian dollar experienced its most significant monthly gain in a decade, appreciating by 4.3% against the U.S. dollar in April. This surge was attributed to easing global trade tensions and the resolution of domestic political uncertainties following Prime Minister Mark Carney’s election victory.Reuters

Investor Sentiment

The Bank’s decision to hold rates steady was met with mixed reactions from investors. Some analysts interpreted the move as a sign of confidence in the economy, while others viewed it as a signal of underlying concerns about the impact of trade policies.

Looking Ahead: Monitoring and Adaptation

The Bank of Canada remains vigilant, closely monitoring the evolving trade landscape and its potential impacts on the Canadian economy. The governing council is prepared to adjust its policy stance as new information becomes available, aiming to balance the objectives of supporting economic growth and maintaining price stability.

Conclusion: A Period of Strategic Patience

The Bank of Canada’s decision to maintain the policy rate reflects a period of strategic patience. In the face of significant global trade uncertainties, the Bank is opting to gather more information before making further policy adjustments. This cautious approach underscores the complexities of economic policymaking in an interconnected and unpredictable global economy.

Canada’s top energy CEOs urge PM Carney to reform regulations and unlock Canada’s potential as a global energy superpower amid rising investor uncertainty.

Oilpatch Leaders Urge Carney to Cut Red Tape and Boost Energy Growth

Canada’s energy executives say they’re ready to help the federal government turn the country into an energy powerhouse—if regulatory reforms come first.

Industry Extends a Hand, but Demands Policy Changes

Top executives from 38 major Canadian energy companies have offered to collaborate with Prime Minister Mark Carney to help fulfill his goal of making Canada an energy superpower. However, their support is contingent on meaningful reforms to the existing regulatory landscape—rules they argue have stifled growth and deterred investment.

“Our economic sovereignty is being tested,” said Suncor CEO Rich Kruger. “We’re ready to engage, but we need an environment that enables success.”

The group voiced concerns in an open letter, marking their second public appeal in recent weeks. Their message: attracting the private capital necessary for large-scale energy development won’t happen without a significant policy pivot.

Praise for Progress, but Frustration Persists

While the industry welcomed Carney’s pledge to limit federal reviews for major energy projects to two years, they argued it doesn’t go far enough. Instead, they proposed a more aggressive six-month approval timeline and supported the expansion of the Indigenous loan guarantee program to $10 billion.

Still, key points of contention remain—particularly over the Impact Assessment Act (Bill C-69) and the ban on oil tankers along B.C.’s northern coast. Energy leaders say current federal policies—especially the emissions cap and industrial carbon tax—pose serious risks to future expansion.

“We don’t need to build pipelines that are going to be empty,” Kruger added. “Before we talk about market access, we need regulatory certainty.”

Investor Confidence Fading Amid Regulatory Confusion

Whitecap Resources CEO Grant Fagerheim echoed concerns over unclear investment returns in Canada’s energy sector.

“There’s got to be a pivot,” he said. “They must recalibrate their message and approach to resource development if we want capital to return.”

Despite growing public and political interest in energy projects—fueled in part by rising tensions with the U.S.—oilpatch leaders remain wary of what they see as a policy environment too volatile for long-term investment.

Pipelines: A Security Issue or a Policy Trap?

Carney and Conservative Leader Pierre Poilievre both view new pipelines as essential to Canada’s national and economic security. And with public support for west-to-east oil and LNG infrastructure increasing, pipeline companies are being pushed to revisit previously abandoned projects.

However, industry insiders caution that pipelines cannot be built on political momentum alone. Companies need production commitments locked in through long-term contracts, which are difficult to secure under today’s regulatory and fiscal uncertainty.

“Building infrastructure without policy clarity won’t work,” said one executive. “Capital is mobile—and right now, it’s leaving Canada.”

Energy Future Tied to Decarbonization Clarity

The lack of consistent federal direction also threatens Canada’s climate ambitions, energy firms warn. Without predictable policy, decarbonization efforts—such as carbon capture and cleaner production methods—could falter.

“Over the last decade, regulatory layering has driven away investment,” said Kruger. “Canada needs to act now or risk falling behind.”

Conclusion

The message from the oilpatch is clear: Canada’s energy potential is enormous, but it cannot be unlocked under the current regulatory regime. The willingness to invest, innovate, and collaborate is there—but so is the growing frustration. As Canada weighs energy security, climate goals, and economic competitiveness, the pressure is on for Ottawa to deliver bold reforms.