Navigating the 2026 Market: Insights from The Globe and Mail and Top Analysts
Staying ahead in the financial markets requires a blend of strategic foresight and real-time data. In the latest market roundup highlighted by The Globe and Mail, top strategists are weighing in on everything from the resilience of Canadian real estate to the volatile surge of the AI-driven equity market.
The Canadian REIT Sector: Finding Firm Footing
According to Pammi Bir, an analyst at RBC Capital Markets, Canadian Real Estate Investment Trusts (REITs) have shown impressive resilience. After a stagnant first quarter, the TSX REIT Index rallied through Q2 2026, posting a year-to-date total return of approximately 14% as of June 12.
The sector is currently tracking toward an optimistic 2026 upside scenario, with total returns expected in the mid-to-high teens. Bir highlights several high-conviction picks based on strong fundamentals and compelling earnings growth:
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- Top Conviction Calls: BEI, CIGI, CSH, GRT, KMP, MHC, REI, and SVI.
- Other Notable Picks: APR, CAR, CHP, DIR, EXE, GO, HR, PMZ, PRV, and SRU.
Sector Priority List:
- Seniors Housing: Ranked highest due to structural tailwinds and a projected 11% earnings CAGR for 2025A-27E.
- Industrial: Strong value and accelerating market fundamentals.
- Self-Storage: Supported by resilient private market values.
Canadian Travel Trends: A Shift in Destination
BMO senior economist Sal Guarneri reports a gradual shift in how Canadians are spending their vacation time. While travel to the U.S. is slowly recovering (up 5% year-over-year as of April), it remains 26% below the levels seen two years ago.
Interestingly, Canadians are increasingly looking beyond the border to other international destinations, which have seen an 18% increase in visits. Meanwhile, American tourism to Canada has remained relatively stable, dipping only 4% over the last two years.
Global Equities and the AI Supercycle
JP Morgan strategist Dubravko Lakos-Bujas remains bullish on the S&P 500, driven largely by the “AI supercycle.” With AI capex nearly doubling, consensus earnings growth for the next two years has been revised upward to an average of 20%.
The Bull Case: JP Morgan has increased its year-end price target for the S&P 500 to 7,800, with 2026 EPS estimates raised to $350.
The Warning: Despite the optimism, Lakos-Bujas warns of a potential “flash crash.” He cites crowded momentum positioning in speculative growth segments and the possibility of tighter monetary policy as risks that could make the path upward non-linear.
Quick Health Update: Shingles Vaccine and Dementia
Beyond the financial markets, a recent report from SciTechDaily suggests a significant health breakthrough: the Shingles vaccine has been linked to a 24% lower risk of dementia in older adults, highlighting the importance of preventative healthcare in aging populations.
For more detailed research and daily analysis, keep following the market updates provided by The Globe and Mail.
