“It’s been another eventful week in the markets. A couple of U.S. regional banks — Zions Bancorporation and Western Alliance — made headlines after revealing exposure to what appear to be fraudulent loans. That sparked some short-term fear in the banking sector and pushed up market volatility.

The VIX, sometimes called the “fear index,” jumped to its highest level since April (although it is down 7.4% today—so volatility is already falling). CNN’s Fear and Greed Index also slipped into “extreme fear” territory — and when you see words like extreme in financial news, it tends to grab attention.

Overseas, Hong Kong and Chinese markets dropped, and European markets were lower midweek. Gold hit a new record near $4,350 an ounce, while U.S. bond yields fell as investors sought safety. Add in renewed trade tension between the U.S. and China, and it’s easy to see why the headlines looked rough. But to me, this falls into the noise category — not a sign of deeper trouble.

Fear, Volatility, and Perspective

I often remind clients that some of the best long-term buying opportunities happen when sentiment swings toward fear, not when everyone feels confident. The Fear and Greed Index was neutral just a week ago — now it’s at extreme fear. That’s actually a healthy sign that emotions, not fundamentals, are driving much of the move.

We’ve seen the VIX spike far higher in the past — during the 2008–09 financial crisis, the 2020 pandemic, and even earlier this year when tariff headlines dominated. Those were periods of true panic, and in hindsight, they proved to be attractive entry points for investors.

Right now, the VIX is around 23 — not calm, but far from crisis levels. So while markets may wobble, this feels like a temporary shakeout rather than the start of something bigger.

The Bigger Picture

Concerns around regional banks aren’t new. Smaller lenders in the U.S. have faced similar pressure over the past few years. Typically, when issues arise, they’re resolved quickly — either larger banks absorb them or the Federal Reserve steps in to backstop deposits.

That’s why I don’t view this as a systemic problem. In fact, these kinds of events often give central banks more reason to stay accommodative — keeping rates low or even cutting them — which helps maintain liquidity and supports markets overall.

Gold and Diversification

One bright spot has been gold. Our Foundation Wealth Diversifier Fund continues to hold roughly 15 percent in gold and precious metals, which has provided stability during the recent volatility.

Gold has been one of the best-performing assets this year. Prices have surged, and gold-mining companies — which were undervalued for years — are finally catching up. This combination has helped cushion portfolios through the recent noise.

Headlines vs. Reality

If you just read the headlines this week, you might think markets were in free fall. But the numbers tell a different story.

Over the past five trading days, the S&P 500 is up about 1.5 percent, the Dow Jones is also up 1.5 percent, and the NASDAQ is up nearly 2 percent. In Canada, the TSX is down roughly half a percent — a perfectly normal one-day move, not a sign of stress.

So despite the chatter about volatility, this has actually been an up week for markets. Thursday’s dip was driven by headlines, not fundamentals, and by Friday, most indices are recovering (as of 9:30 am).

If you look at your portfolio, you probably haven’t noticed any big changes — just the normal ups and downs that come with investing. These kinds of weeks serve as good reminders that markets often feel worse in the news than they do in reality.

Final Thoughts

From my perspective, this isn’t something I’m moving on. I’m not selling, and I’m not rushing to buy. It’s not a major buying opportunity or a signal to make changes. It’s simply a period to wait out.

Overall, I see this as another normal market hiccup. Some fear entered the system, a few headlines got amplified, and now we’re seeing stabilization again. Liquidity remains strong, and the long-term outlook hasn’t changed.

Yesterday’s CBC interview was about gold, to listen to it please click here.” 

Hope you find these helpful. As always, feel free to reach out with any questions or thoughts.

Best regards,

Mark, Leanne, and James

Book an appointment with Mark:  https://calendly.com/mark-ting

Book an appointment with Leanne:  https://calendly.com/leanne-brothers

Book an appointment with James:  https://calendly.com/james-pelmore

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