The Market's Current State
The market has reached all-time highs, with the S&P/TSX Index rising by 21% in 2025 and 94% over the last five years, resulting in a nearly 100% return.
This significant growth has led to substantial wealth creation, and investors have been eager to participate.
Caution and Concerns
Despite the impressive run, the current trading at all-time highs, with the TSX Index closing at $30,186, raises concerns due to stretched valuations and economic issues.
Prime Minister Carney has highlighted trade tensions with the US and related uncertainties.
Investment Strategy
Given the current situation, a selective approach to taking profits and waiting for a pullback to create better buying opportunities seems prudent.
Author's summary: Market highs raise concerns about valuations and economy.