Monthly Market and Portfolio Review
| Indexes | Monthly Streak |
| TSX: | 2 – month winning streak |
| S&P: | 2 – month winning streak |
| DJIA: | 2 – month winning streak |
| Nasdaq: | 2 – month winning streak |
Historically, May through October is a weaker period for markets, averaging gains of around 2% compared to roughly 7% from November through April. However, May got off to a strong start as the S&P 500 (S&P) and Nasdaq Composite (Nasdaq) both reached record highs in the opening week. While the rest of the month wasn’t a straight shot higher, the rally continued. The S&P broke above 7,500 for the first time, the tech-heavy Nasdaq crossed both the 25,000 and 26,000 milestones, and the Dow Jones Industrial Average (DJIA) climbed above 50,000 before ending May with its first-ever close above 51,000.
Artificial intelligence (AI) remained the dominant force driving markets higher. Fears around AI spending and disruption that had weighed on markets earlier in the year faded into the background, replaced by renewed optimism. Investors continued pouring money into companies benefiting from the AI boom, particularly semiconductor manufacturers, cloud computing providers, and businesses building the infrastructure needed to support the technology. Because technology companies make up such a large share of both the S&P and Nasdaq, renewed enthusiasm around AI helped propel both indexes to fresh record highs, with the Nasdaq once again leading the way.
Strong corporate earnings also fuelled the rally. Many companies reported better-than-expected results and delivered optimistic outlooks, reassuring investors that corporate profits remained resilient despite elevated interest rates. While technology companies grabbed most of the attention, solid earnings across other sectors helped broaden the rally beyond just a handful of AI-related names.
Geopolitics also remained an important theme as the US-Iran conflict continued to influence energy markets. Earlier concerns that the conflict could disrupt global oil supplies and fuel inflation gradually eased as investors became more optimistic about ceasefire negotiations and the prospects for a longer-term peace agreement. News of an extended ceasefire and tentative peace deal later in the month pushed oil prices lower, easing inflation concerns and providing another tailwind for stocks.
Economic data, meanwhile, sent mixed signals. First-quarter US economic growth was revised lower than expected, while inflation remained stubbornly above the Fed’s target, raising concerns that interest rates could stay higher for longer. Under normal circumstances, that combination might have weighed on stocks. Instead, a resilient labour market and steady consumer spending reinforced the view that the economy was cooling rather than slipping into recession. Investors largely looked through the softer growth and sticky inflation data, choosing instead to focus on strong earnings, continued AI investment, and signs that the broader economy remained on solid footing.
Canada’s TSX followed a slightly different path but still delivered a strong month, setting multiple record highs and finishing with a new record close at the end of May. Performance was driven primarily by higher oil prices and spillover strength from US markets. Earlier geopolitical tensions helped support crude prices and provided a tailwind for Canada’s energy-heavy index. Although oil prices eased later in the month as tensions cooled, they remained high enough to support the sector. At the same time, record highs south of the border boosted global risk appetite, and with Canada’s economy and stock market closely tied to the US, that momentum provided a consistent lift for Canadian equities throughout the month.
Overall, May showed how different markets can arrive at the same destination for different reasons. In the US, AI enthusiasm, strong corporate earnings, easing geopolitical concerns, and a resilient labour market combined to push the major indexes to fresh record highs. In Canada, higher oil prices and the momentum from US markets did much of the heavy lifting. It’s a good reminder that while markets often move together, the forces driving them can be very different.
| Portfolio | Monthly Streak | |
| Portfolio 1: | 2 – month winning streak | |
| Portfolio 2: | 2 – month winning streak | |
| Portfolio 3: | 2 – month winning streak |
Although May’s gains weren’t as strong as April’s, the upward momentum continued as strong corporate earnings fuelled the AI rally and easing tensions in the Middle East improved investor sentiment. All three portfolios benefited from the rebound in growth stocks as enthusiasm around AI returned and many companies delivered better-than-expected earnings.
Portfolio 1 gained 7.0% in May, stringing together four consecutive weekly gains over the course of the month. The technology-heavy portfolio was led by its AI and software holdings, with Datadog (NASDAQ: DDOG) delivering the biggest boost after reporting strong earnings and raising its full-year outlook. CrowdStrike (NASDAQ: CRWD), Lattice Semiconductor (NASDAQ: LSCC), Navitas Semiconductor (NASDAQ: NVTS), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOGL) also posted solid gains as investors continued favouring companies tied to AI infrastructure and digital transformation. Those gains more than offset weakness in Nvidia (NASDAQ: NVDA) and a handful of financial holdings.
Portfolio 2 entered May riding a five-week winning streak and built on that momentum, gaining 7.4% while extending its streak to nine consecutive weeks. MongoDB (NASDAQ: MDB) helped set the tone early in the month after another impressive earnings report, while higher oil prices provided a steady tailwind for the portfolio’s energy holdings. Birkenstock (NYSE: BIRK), Guardant Health (NASDAQ: GH), Mitek Systems (NASDAQ: MITK), and Aritzia (TSE: ATZ) were among the month’s strongest contributors, more than offsetting weakness in Zoetis (NYSE: ZTS) and a handful of other positions.
Portfolio 3 gained 6.1% in May, finishing the month on a four-week winning streak. Although it trailed the other two portfolios, it still outperformed every major index except the Nasdaq and completed an impressive recovery after a difficult first quarter. Rocket Lab (NASDAQ: RKLB), Shopify (TSE: SHOP), Cloudflare (NYSE: NET), and 5N Plus (TSE: VNP) led the gains, while continued enthusiasm around AI helped Vertiv Holdings (NYSE: VRT) and 5N Plus reach multiple record highs. Those gains more than offset Nvidia’s periods of weakness, lifting the portfolio back into positive territory for the year.
Overall, May was another reminder that the portfolios are designed to perform in different ways. Portfolio 1 benefited most from renewed enthusiasm around AI and technology, Portfolio 2 combined steady energy exposure with broad stock-specific gains, and Portfolio 3 rewarded patience as its growth holdings rebounded after a difficult start to the year. While each portfolio took a different path, all three finished the month with strong gains and are now back in positive territory for 2026. After a slow start to the year, it’s encouraging to see them all moving in the right direction. Onward and upward! 😊
Year To Date
After a sluggish start to 2026, the rally that began in April carried into May, lifting all four major North American indexes even higher. The AI rally regained momentum, helping the Nasdaq strengthen its lead as the year’s top-performing index with a gain of 16.1%. The S&P also benefited from renewed enthusiasm around AI, climbing 10.7% and moving into second place. The TSX, which was tied with the Nasdaq for the top spot at the end of April, slipped to third despite a strong 9.6% gain. Meanwhile, the DJIA continued to play catch-up, nearly doubling its year-to-date return at the end of April from 3.3% to 6.2%.
That improving market backdrop has also been reflected in the portfolios. All three are now solidly positive year-to-date, marking a clear turnaround from the early months of 2026. Portfolio 1 leads with a gain of 13.6% so far this year, followed by Portfolio 2 at 8.0%, while Portfolio 3 has moved from negative territory earlier in the year to a 5.3% year-to-date gain.
It’s great to see all three portfolios back in positive territory after the weak start to the year. It reinforces how quickly conditions can shift once momentum changes. Now to keep that positive momentum going into June and beyond. 😊
Portfolio Update
Portfolio 1 for May 2026: UP 
Activity
No significant activity to report this month.
Dividends Received this month:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
Bank of Nova Scotia (TSE: BNS) DRIP
Dream Industrial Real Estate Investment Trust (TSE: DIR.UN) DRIP
BSR Real Estate Investment Trust (TSE: HOM.U)
Decisive Dividend (TSE: DE) DRIP
Pulse Seismic (TSE: PSD) DRIP
US $
Ferrari N.V. (NYSE: RACE)
Costco Wholesale Corp (NYSE: COST)
Walmart (NASDAQ: WMT)
Quarterly Reports
Lattice Semiconductor Corporation
First quarter 2026 financial results on May 4, 2026
TMX Group Limited
First quarter 2026 financial results on May 4, 2026
Grab Holdings Limited
First quarter 2026 financial results on May 5, 2026
Cameco Corporation
First quarter 2026 financial results on May 5, 2026
Hammond Power Solutions Inc.
First quarter 2026 financial results on May 5, 2026
Shopify Inc.
First quarter 2026 financial results on May 5, 2026
Arista Networks, Inc.
First quarter 2026 financial results on May 5, 2026
Navitas Semiconductor
First quarter 2026 financial results on May 5, 2026
Ferrari N.V.
First quarter 2026 financial results on May 5, 2026
Magnite
First quarter 2026 financial results on May 6, 2026
Tourmaline Oil Corp.
First quarter 2026 financial results on May 6, 2026
Datadog, Inc.
First quarter 2026 financial results on May 7, 2026
Celsius Holdings, Inc.
First quarter 2026 financial results on May 7, 2026
Trisura Group Ltd.
First quarter 2026 financial results on May 7, 2026
BCE Inc.
First quarter 2026 financial results on May 7, 2026
Cloudflare, Inc.
First quarter 2026 financial results on May 7, 2026
The Trade Desk, Inc.
First quarter 2026 financial results on May 7, 2026
Decisive Dividend Corporation
First quarter 2026 financial results on May 7, 2026
TELUS Corporation
First quarter 2026 financial results on May 7, 2026
Constellation Software Inc.
First quarter 2026 financial results on May 12, 2026
SEA Limited
First quarter 2026 financial results on May 12, 2026
The Home Depot, Inc.
First quarter 2026 financial results on May 19, 2026
Nvidia Corporation
First quarter 2027 financial results on May 20, 2026
Walmart Inc.
First quarter 2026 financial results on May 21, 2026
The Bank of Nova Scotia
Second quarter 2026 financial results on May 27, 2026
TD Bank Group
Second quarter 2026 financial results on May 28, 2026
Costco Wholesale Corporation
Third quarter 2026 financial results on May 28, 2026
Kraken Robotics Inc.
First quarter 2026 financial results May 28, 2026
Portfolio 2 for May 2026: UP
Activity
Sold: Telus (TSE: T) Please see May 8 Weekly Update.
Dividends Received this month:
Canadian $
Bank of Nova Scotia (TSE: BNS) DRIP
Dollarama (TSE: DOL)
SmartCentres Real Estate Investment Trust (TSE: SRU.UN)
TC Energy (TSE: TRP)
Dream Industrial Real Estate Investment Trust (TSE: DIR.UN) DRIP
Whitecap Resources (TSE: WCP)
US $
No US$ dividends this past month.
Quarterly Reports
TC Energy Corporation
First quarter 2026 financial results on May 1, 2026
NAPCO Security Technologies, Inc.
Third quarter 2026 financial results on May 4, 2026 pm
iA Financial Corporation Inc.
First quarter 2026 financial results on May 5, 2026 pm
Hammond Power Solutions Inc.
See report under Portfolio 1.
Fortis Inc.
First quarter 2026 financial results on May 6, 2026
The Walt Disney Company
Second quarter 2026 financial results on May 6, 2026
SmartCentres Real Estate Investment Trust
First quarter 2026 financial results on May 6, 2026 pm
Tourmaline Oil Corp.
See report under Portfolio 1.
Canadian Natural Resources Limited
First quarter 2026 financial results on May 6, 2026 pm
Guardant Health, Inc.
First quarter 2026 financial results on May 7, 2026 pm
South Bow Corp.
First quarter 2026 financial results on May 7, 2026 pm
Mitek, Inc.
Second quarter 2026 financial results on May 7, 2026 pm
Aritzia Inc.
Fourth quarter 2026 financial results on May 7, 2026 pm
Zoetis Inc.
First quarter 2026 financial results on May 7, 2026
Airbnb, Inc.
First quarter 2026 financial results on May 7, 2026 pm
Supremex Inc.
First quarter 2026 financial results on May 7, 2026
Birkenstock Holding plc
Second quarter 2026 financial results on May 13, 2026
Take-Two Interactive Software, Inc.
Fourth quarter 2026 financial results on May 21, 2026
The Bank of Nova Scotia
See report under Portfolio 1.
MongoDB, Inc.
First quarter 2027 financial results on May 28, 2026
Portfolio 3 for May 2026: UP
Activity
No significant activity to report this month.
Dividends Received this month:
Canadian $
SmartCentres Real Estate Investment Trust (TSE: SRU.UN) DRIP
Royal Bank of Canada (TSE: RY)
US $
No US$ dividends this past month.
Quarterly Reports
Shopify Inc.
See report under Portfolio 1.
Magnite
See report under Portfolio 1.
SmartCentres Real Estate Investment Trust
See report under Portfolio 2.
5N Plus Inc.
First quarter 2026 financial results on May 6, 2026
Rocket Lab Corporation
First quarter 2026 financial results on May 7, 2026 pm
Cloudflare, Inc.
See report under Portfolio 1.
Alvopetro Energy Ltd.
First quarter 2026 financial results on May 7, 2026 pm
Brookfield Corporation
First quarter 2026 financial results on May 14, 2026
Brookfield Wealth Solutions
First quarter 2026 financial results on May 14, 2026
Nvidia Corporation
See report under Portfolio 1.
Royal Bank of Canada
Second quarter 2026 financial results on May 28, 2026
TD Bank Group
See report under Portfolio 1.
Rockpoint Gas Storage Inc.
Second quarter 2026 financial results on May 28, 2026