Canada Sees Unprecedented $56 Billion in Private Equity Transactions
Record Private Equity Deals: Canada saw a record $56.5 billion in private equity deals in the first nine months of the year, surpassing pre-pandemic levels with 483 transactions.
Major Transactions: Significant deals included Garda World Security's $14 billion privatization, CI Financial's $12.1 billion acquisition by an Abu Dhabi sovereign wealth fund, and Innergex Renewable Energy's $10 billion purchase.
Economic Context: The rise in private equity activity occurs amid signs of an economic slowdown and a shift of Canadian companies away from public markets, influenced by U.S. tariffs.
Stock Market Performance: Despite the increase in private equity deals, Canada's Toronto Stock Exchange has risen 24% this year, outperforming the S&P 500's 17% gain, contrasting with the record-low deal values seen in 2022 and 2023.
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Trump's Assertion of Peace: President Trump claimed that there is currently peace in the Middle East, despite skepticism from others, citing a recent Board of Peace meeting as evidence of what determined leadership can achieve.
Warning to Iran: Trump warned Iran about the consequences of failing to reach a deal with the U.S., suggesting that the next ten days will be crucial in determining whether tensions escalate or a deal is struck.
IAEA's Urgency: Rafael Mariano Grossi, the Director General of the International Atomic Energy Agency, emphasized that time is running out for Iran to finalize a nuclear deal, indicating that concrete solutions are being worked on.
Market Reactions: Following these developments, U.S. equities experienced declines, with various ETFs tracking major indices showing drops, reflecting investor sentiment amid geopolitical tensions.

Jobless Claims Decrease: The four-week moving average for jobless claims fell by 1,000 to 219,000, indicating a decrease in weekly volatility, while continuing claims increased by 17,000 to 1.87 million.
State Variations: The largest increase in claims came from Texas (2,592), followed by Virginia (1,909), while the largest decrease was noted in Pennsylvania (3,181) and Missouri (2,755).
Labor Market Stability: The jobless claims report suggests signs of stabilization in the labor market, with participants noting low levels of layoffs and cautious hiring decisions due to economic uncertainties.
Market Reactions: U.S. equities declined, with the S&P 500 ETF down by 0.09%, reflecting a neutral sentiment among retail investors regarding the economic outlook and labor market conditions.

Trump's Statement on Iran: President Donald Trump indicated that Iran is interested in making a deal, expressing hope that the country will act more reasonably in negotiations.
Warnings from Iran's Leadership: Iran's Supreme Leader, Ayatollah Ali Khamenei, threatened to sink U.S. warships, highlighting escalating tensions between the two nations.
IAEA's Role in Negotiations: Rafael Mariano Grossi, Director General of the International Atomic Energy Agency (IAEA), noted that the agency's return to Iran depends on broader agreements, emphasizing the political nature of ongoing negotiations.
Market Reactions: Following these developments, U.S. equities experienced declines, with various ETFs tracking major indices showing downward trends in pre-market trading.
- Investment Opportunities: The current market conditions favor dividend stocks, providing opportunities for income-seeking investors.
- Strategies for Investors: There are various strategies available for investors to capitalize on the potential growth of dividend stocks.

Trade Deficit Surge: The U.S. trade deficit reached a record $140.5 billion in March 2025, driven by a surge in imports ahead of new tariffs, which led to a sharp decline in imports in April.
Impact of Tariffs: President Trump claimed that his tariff policies resulted in a 78% reduction in the trade deficit, although the actual figures showed a widening deficit in January 2025 before narrowing significantly in subsequent months.
Customs Revenue Increase: Customs revenue for 2025 totaled $264 billion, helping to reduce the federal budget deficit to $1.67 trillion, the smallest in three years, despite projections of higher deficits due to tax and immigration policies.
Future Projections: The Congressional Budget Office warned of an unsustainable fiscal path, predicting that deficits could exceed 5% of GDP in the coming years, with legal uncertainties surrounding tariff policies still unresolved.

U.S. Stock Performance: The S&P 500 has had a challenging year, remaining flat due to high valuations, concentration in certain indices, and a weaker dollar.
Foreign Equities Outperforming: The iShares MSCI ACWI ex U.S. ETF has outperformed the State Street SPDR S&P 500 ETF Trust by eight percentage points in 2025 and continues to lead by over seven points this year.
Shift in Market Dynamics: This marks a significant shift after nearly two decades of U.S. stock market dominance, raising questions about the sustainability of this trend.
Investment Professionals' Perspectives: Investment professionals are being surveyed on whether they will continue to allocate more resources to foreign markets amidst these changes.






