January 26, 2026 | Finliti | Free Subscriber 😃

Tariff Turnabout ⏎ Policy whiplash set the tone: early tariff threats on Europe spooked stocks, a quick walk-back sparked a relief rally, and gold’s record run kept caution in the mix.

Highlights From Last Week:

• 📉 Tariff talk hit risk assets; walk-back fueled a midweek rebound
• 🪙 Gold notched records as the dollar softened and defensives drew bids
• 🔄 Tech cooled while small caps and cyclicals stabilized into week’s end

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​Tariff Turnabout - Finliti Market News January 26 2025.mp3​

US Markets: Tariff Threats, Then a Relief Rally

Wall Street had a classic mood-swing week. Markets tumbled early after President Trump floated new tariffs on several European countries, sending stocks sharply lower and rattling investors. Midweek, the tone flipped when those tariff threats were walked back following talk of a Greenland deal, sparking a relief rally that clawed back some losses. By Thursday, stocks kept inching higher, though nerves were still visible beneath the surface. The week ended quietly, with markets treading water as mixed earnings, a weaker dollar, and record-high gold prices hinted that caution hasn’t gone anywhere.

What does it mean for you?

Markets can swing quickly when policy uncertainty dominates the narrative. Price moves were driven less by fundamentals and more by shifting political signals, making short-term direction harder to read. The choppy action also highlighted lingering caution beneath the surface, with defensive assets attracting attention even as stocks attempted to stabilize.

TSX (Canada): Gold Leads as Jitters Fade

Canadian stocks had a bumpy but shiny week, with gold stealing the spotlight. The S&P/TSX Composite started strong as mining stocks climbed and inflation data failed to cause too much drama. Midweek nerves kicked in when global trade tensions flared, briefly dragging the index lower. However, calm returned as those worries faded, helping stocks bounce back and push to fresh highs by Friday. Precious metals were the real stars, with gold and silver surging as investors leaned into safer assets. By week’s end, cooler geopolitics and strong materials stocks left the TSX finishing on a confident, glitter-powered note.

What does this mean for you?

Canadian markets can closely track shifts in global sentiment, especially when uncertainty rises elsewhere. Moves in commodities continued to play an outsized role in shaping market direction, reinforcing the TSX’s sensitivity to resource trends. Overall, it showed that confidence can rebound quickly, but markets remain highly sensitive to headlines and commodity trends.

Crypto: Green Headlines, Red Tape—Momentum Stalls

Bitcoin wrapped up the week on a soft note, extending a stretch of weakness as positive headlines failed to spark much enthusiasm for crypto. Easing geopolitical tensions and a high-profile corporate purchase didn’t shift sentiment, with investors instead gravitating toward traditional safe havens like gold. Retail interest, especially in the U.S., stayed muted as attention and capital flowed toward hot technology stocks linked to artificial intelligence. The broader crypto market followed Bitcoin lower, with major tokens and altcoins ending the week under pressure.

What does this mean for you?

Crypto is still highly sensitive to shifts in broader market confidence and competition from other asset classes. When uncertainty rises, capital can move quickly toward assets seen as more established, leaving digital assets more exposed to swings in sentiment.

Emerging Markets: AI-Heavy Asia Pulls Fresh Flows

Investors are putting record amounts into emerging-market funds as attention shifts from U.S. assets. The iShares Core MSCI Emerging Markets ETF has taken in nearly US $6 billion this month, on pace for its biggest monthly inflow since 2012. Asian tech stocks are reaching new highs, with Taiwan, China, India, and South Korea making up about 70% of major EM fund portfolios. Meanwhile, U.S. equity funds have seen notable outflows amid market jitters. So far in 2026, emerging-market stocks are outpacing their U.S. counterparts, with the MSCI EM Index up 6.2% while the S&P 500 has remained largely flat.

What does this mean for you?

This shows a growing focus on diversification and changing market trends. It also underscores how global events and economic news can influence investment flows quickly, driving noticeable performance differences between markets. Overall, it illustrates the dynamic nature of investor behavior, where attention can move rapidly between regions, sectors, and asset classes depending on risk perceptions, macro trends, and headline developments.

Commodity Craze: Allied Gold’s Breakout Year

Shares of international gold miner Allied Gold (AAUC), have nearly quadrupled in price over the past year, far outpacing the TSX Gold Index. The boost comes as the company ramps up production at its Sadiola mine in Mali and prepares to start its Kurmuk project in Ethiopia by the third quarter of 2026. Allied Gold plans to grow Kurmuk’s resources to five million ounces and maintain annual production of around 290,000 ounces. The company is also focusing on local hiring, working closely with communities, and keeping good relations with governments. Expanding resources creates excitement among investors in the gold community. This combined with the spike in gold prices caused positive momentum.

What does this mean for you?

Allied Gold’s expansion and exploration efforts highlight potential growth in production and resources. At the same time, being active in multiple countries means its performance remains tied to global gold prices and market dynamics, making broader trends in supply and demand important to watch. Foreign exchange and political risk make speculative stocks volatile to operational setbacks.

Meme Stock Stalkers: Income ETF Targets Meme Volatility

Tuttle Capital Management recently launched a new ETF called the Meme Stock Income Blast ETF (MEMY), now trading on CBOE, a major U.S. exchange known for options and volatility products. The fund focuses on meme stocks, meaning companies that get a lot of attention from retail investors on social media. MEMY holds 15 to 30 of these stocks and uses options strategies to collect income from their high price swings. The goal is to tap into meme stock volatility while still keeping exposure to their stock price movements.

What does this mean for you?

This reflects the continued evolution of meme stock trading into more structured, professionally managed products. At the same time, this approach involves risks, including sharp price swings tied to shifts in online sentiment, added complexity from options usage, and potential concentration in a limited number of stocks.

Moderate Market Makers: P&G—Beauty Holds, Basics Slow

Consumer goods giant Procter & Gamble (PG) reported a mixed second-quarter performance, with sales slightly below expectations as weaker demand for essentials like laundry detergent and toilet paper offset gains in its beauty products. Adjusted earnings came in a bit above estimates, helped by strong sales in hair and personal care items. The company’s profit margins have slipped for several quarters, partly due to tariffs and changes in product sizes to help shoppers save. Overall volumes were down slightly, while beauty products stood out with steady growth. P&G maintained its annual targets but lowered its profit growth outlook, reflecting ongoing restructuring and shifting consumer habits.

What does this mean for you?

This signals that even a major, stable consumer goods company is experiencing pressure from changing consumer behavior and economic uncertainty. Essentials that were once consistent sellers are seeing slower demand, while discretionary and self-care categories remain more resilient. Keeping up with buyer demands and trends is important to do to maintain market share.

ESG: Canada’s Oil & Gas Under the Accounting Microscope

An investor advocacy group, Investors for Paris Compliance, has raised concerns with more than a dozen Canadian oil and gas companies about how they report environmental liabilities. The group says 2024 disclosures on funds set aside for decommissioning operations have gaps that could affect billions in shareholder capital. It’s asking audit committees to clarify assumptions on costs, commodity prices, asset lives, and the potential impact of a faster move away from fossil fuels. If these issues aren’t addressed in 2025 financial statements, the group may withhold support for re-electing audit chairs and external auditors at upcoming annual meetings.

What does this mean for you?

This shows increasing scrutiny on how oil and gas companies manage environmental and transition-related financial risks. Gaps in decommissioning provisions or disclosure could signal potential future costs that aren’t fully accounted for, affecting company finances and shareholder value.

Jargon Word of the Week

An institutional investor is a big organization, like a bank, insurance company, or pension fund, that pools together lots of money from many people and invests it in things like stocks, bonds, or real estate. These organizations make investments on a much larger scale than individual people.

In a sentence, please!

“Institutional investors rushed in like a shopping spree on opening day, snapping up shares during the company’s initial public offering.”