Market Update – Winter 2025

Featuring Graham Walker, Certified Financial Planner professional, Educators Financial Group

2024 provided a very strong recovery for most Canadian investors. The economy demonstrated resilience despite the ongoing presence of high interest rates, global headwinds, and geopolitical conflicts abroad.

The Canadian GDP grew by roughly 1.2% in 2024, mainly driven by investments in sectors like Electric vehicle manufacturing, and infrastructure but also through strong population growth.

In equity markets, we saw strong performances from most major indices as they remained elevated in 2024. Additionally, fixed income assets also gained traction making bonds an attractive option for diversification.

Looking ahead, the Canadian economy is expected to improve and stronger GDP numbers are in the forecast. Interest rates are expected to continue to fall both at home and in the US as inflation continues to settle. With the recent news of Justin Trudeau stepping down as leader of the Liberal Party and prime minister of Canada, and the US election now behind us, there is expected to be short term volatility, however, this reinforces the importance of having a financial plan ensuring you are poised to navigate through change strategically.

If you’re interested in learning more, read our deep dive edition.

As we head into another year, we – at Educators Financial Group – would like to thank you for entrusting us to guide you through your financial journey. Know that we remain committed to your success whatever this year may bring.

Please feel free to connect with your financial planner, advisor, or any member of the Educators team, should you want to review your portfolio, discuss any upcoming financial needs or strategize on how to navigate the financial landscape this coming year. We are here to help!