Monthly Portfolio Update August 2026

A lightbulb with a $ filament and dollars at the bottom of the bulb goes on for bulls and bears.

Monthly Market and Portfolio Review

Indexes	Monthly Streak
TSX:	5 – month winning streak
S&P:	1 – month winning streak
DJIA:	6 – month winning streak
Nasdaq:	1 – month winning streak

After a volatile July, the US markets got off to a positive start in August, with the Dow Jones Industrial Average (DJIA) setting a record closing high on the first trading day. It would set two more records during the month, while the S&P 500 Index (S&P) established three of its own. The Nasdaq Composite Index (Nasdaq), despite being the top-performing index in August, remained below its June record. The Canadian market joined in, with the Toronto Stock Exchange Composite Index (TSX) setting four new record closing highs before ending the month just below its peak.

Artificial intelligence (AI) and technology stocks provided the biggest boost to the US markets. After pulling back in July, technology stocks regained momentum as investors became more confident that massive spending on AI infrastructure was translating into continued growth. That confidence was reinforced late in the month when Nvidia (NASDAQ: NVDA) reported better-than-expected results and projected a 70% increase in revenue for its next fiscal year. Strong results from other technology and AI-related companies added to the rally and eased concerns that AI spending might be approaching a peak.

Interest-rate expectations also shifted. Weaker employment data early in August showed US payrolls had unexpectedly fallen in July. While that raised concerns about the economy, it also reduced expectations of an imminent Federal Reserve rate increase, helping stocks move higher. Later in the month, Fed Chair Kevin Warsh took a more hawkish tone, emphasizing the need to bring inflation back to the Fed’s 2% target. Expectations for a September rate hike increased, pushing Treasury yields higher and putting pressure on stocks.

Oil and geopolitical tensions added to inflation concerns. The continuing conflict involving Iran and the closure of the Strait of Hormuz raised concerns about disruptions to global energy supplies. Brent crude jumped back above US$90 a barrel after the US carried out military action near the Strait on the final day of August.

Despite these concerns, the US economy remained resilient. Corporate earnings were encouraging, with most companies beating analysts’ expectations, while continued expansion in the services sector provided further support. Solid earnings and economic growth helped offset concerns about inflation, interest rates and tariffs, while renewed enthusiasm for AI kept those issues from dominating investor sentiment.

In Canada, the TSX extended its monthly winning streak to five months. Unlike the US markets, where technology and AI stocks led the way, Canada’s gains were driven more by rising gold prices and solid earnings from the big Canadian banks, while trade uncertainty remained a headwind.

Gold jumped nearly 10% in August, its best month since February, as investors sought the traditional safe-haven asset amid trade uncertainty and geopolitical tensions. That lifted Canadian gold miners and other commodity-oriented companies. Financial stocks also contributed, with all six of Canada’s largest banks beating analysts’ profit expectations, helped in part by strong capital-markets activity.

Trade tensions with the US remained a concern, with new US tariffs of up to 50% on roughly US$20 billion of Canadian goods raising worries about exporters, business investment and economic growth. The Canadian economy held up better than feared, helping the TSX remain resilient, although higher Canadian and US bond yields pressured interest-sensitive areas.

Energy stocks provided less of a boost than they might have in a typical commodity-driven month. Oil prices rose during parts of August but finished only modestly higher, leaving gold, other commodity-oriented companies and financials as the bigger drivers of the TSX’s gains.

Overall, August was another strong month for North American markets, but the sources of that strength varied considerably. US markets were powered largely by renewed enthusiasm for AI and technology, while Canada benefited more from gold, other commodity-oriented companies and financials. Investors continued to balance solid economic growth and corporate earnings against inflation, interest rates, tariffs and geopolitical uncertainty, with rising oil prices fuelling concerns that persistent inflation could remain a challenge heading into September.

Portfolio	Monthly Streak
Portfolio 1:	1 – month winning streak
Portfolio 2:	5 – month winning streak
Portfolio 3:	1 – month winning streak

It was great to see the value of all three portfolios end the month higher than they started, helped by a positive month in the markets. All three portfolios began August with consecutive weekly gains before inflation concerns triggered a sharp setback in the third week. The rebound in the final week more than erased those losses and allowed all three portfolios to finish the month in positive territory.

Portfolio 1 got back in the win column in August, gaining 3.9% as a reinvigorated AI rally lifted several technology holdings. Nvidia, Navitas Semiconductor (NASDAQ: NVTS), Magnite (NASDAQ: MGNI) and CrowdStrike (NASDAQ: CRWD) were among the biggest contributors, while rising gold prices boosted the iShares S&P/TSX Global Gold Index ETF (TSE: XGD). The month wasn’t without setbacks, with Datadog (NASDAQ: DDOG) and Celestica (TSE: CLS) among the biggest drags. A strong final week helped Portfolio 1 overcome its mid-month setback and secure a solid monthly gain.

Portfolio 2 gained 3.1% in August, extending its monthly winning streak to five and benefiting from its more balanced mix of sectors. Energy and financial stocks helped cushion the portfolio during the month’s sharpest setback, while several individual holdings provided plenty of upside. MongoDB (NASDAQ: MDB) rode the AI wave and delivered double-digit gains in consecutive weeks, with Airbnb (NASDAQ: ABNB) and Napco Security (NASDAQ: NSSC)also making strong contributions. The Bank of Nova Scotia (TSE: BNS), the portfolio’s largest holding, added another boost late in the month.

Portfolio 3 was the top performer in August, gaining 6% and beating both my other portfolios and all four benchmark indexes. With its heavy focus on AI and technology, the portfolio received a significant boost from the resurgence in AI stocks, although that same exposure also contributed to its volatility. Space stocks added to the gains, with Rocket Lab (NASDAQ: RKLB) and MDA Space (TSE: MDA) having strong months, while technology companies Shopify (TSX: SHOP), Corning (NYSE: GLW), Nvidia, Broadcom (NASDAQ: AVGO), Vertiv Holdings (NYSE: VRT) and Magnite also posted strong gains. After a sharp setback in the third week, the portfolio bounced back strongly, gaining ground in each of the other three weeks to finish August with its strongest monthly performance of the three portfolios.

August was a good month for the portfolios, with all three finishing higher despite the mid-month turbulence. The resurgence in AI and technology stocks provided a boost across all three portfolios, while energy and financial stocks helped Portfolio 2 cushion the impact of the difficult third week. Seeing all three portfolios recover from the setback and finish the month in positive territory was a welcome way to close August.

Monthly Portfolio & Index performance — Chart 1: **August 2026 Portfolio Performance Compared to Major Market Indexes**
A comparison of the monthly returns of my three portfolios and the major market indexes.

Year To Date

Eight Months YTD Portfolio & Index performance — Chart 2: **2026 Year-to-Date Portfolio Performance Compared to Major Market Indexes**
A comparison of the year-to-date returns of my three portfolios and the major market indexes

After a strong August that saw all four major indexes finish in positive territory, the TSX continues to lead the way, gaining 14.4% so far in 2026. Rising gold and other commodity prices have helped drive the Canadian market higher. A resurgence in AI and technology stocks propelled the Nasdaq from the worst-performing index at the end of July into second place, with a 13.5% gain for the year. The S&P follows at 12.3%, while the DJIA brings up the rear at 10.7%.

August was also a good month for all three of my portfolios, with each now posting a double-digit gain for the year. Portfolio 1 is still in the lead at 17.0%, widening its advantage over Portfolio 2, which has gained 16.0%. Both continue to outperform the best-performing major index, the TSX.

Portfolio 3 remains in third place, but August gave it a significant boost. Its year-to-date gain more than doubled, jumping from 5.2% at the end of July to 11.5% at the end of August. That has substantially narrowed the gap with the two portfolios ahead of it, putting Portfolio 3 within striking distance of the leaders.

Overall, August was a good month for my portfolios. Portfolios 1 and 2 continue to outperform the major indexes, while Portfolio 3 made the biggest move of the month and substantially closed the gap.

What My Three Portfolios Did in August 2026

Portfolio 1 for August 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)

Decisive Dividend (TSE: DE) DRIP

TMX Group (TSE: X)

Pulse Seismic (TSE: PSD) DRIP

US $

Costco (NASDAQ: COST)

Apple (NASDAQ: AAPL)

BSR Real Estate Investment Trust (TSE: HOM.U)

Carnival Corporation (NYSE: CCL)