The S&P/TSX Composite finished the year up 28%, recovering from the drop in April when Trump threatened tariffs. The rally kicked off after Mark Carney took over as PM and trade tensions cooled. Mining and financials led the way. The materials sector nearly doubled thanks to gold and silver prices, while bank stocks jumped over 30%. Tech names like Shopify also helped. Big Six banks posted 15% earnings growth, beating expectations. Valuations are getting steep though, with banks trading at 2x book value compared to 1.4x back in April. Some strategists are taking profits now, noting the economy might still feel the impact of tariffs in 2026.