Market Update February 2026
Market Sentiment: Balancing Excitement and Caution
Many clients are currently expressing a blend of excitement and uneasiness. While market performance has been robust and portfolios are reflecting healthy gains, there is an underlying sense of concern: “How long can this last?” This reaction is entirely normal, especially following several years of sustained growth. Instead of reacting to market noise, it is helpful to maintain a grounded perspective, one that has provided reassurance to many families we work with.
Staying Steady When Markets Feel “Too Good”
During the past decade, global markets have navigated significant uncertainty—ranging from pandemics and inflation spikes to political surprises and rapid technological advancements yet have continued to make progress. This resilience is not accidental; it is driven by factors such as strong corporate earnings, ongoing innovation, and a surprisingly robust economic environment. Despite this, feeling cautious is natural. Historically, most sustained market advances occur during periods when investors remain wary. This sense of unease is simply part of the investment journey. A review of market history reveals that markets rarely feel comfortable in real time, but those who remain disciplined and patient have been rewarded over the long term.
Lessons from Past Downturns
When markets are performing well, it is tempting to anticipate an imminent downturn. The reality is that pullbacks are a normal aspect of investing and need not disrupt long-term plans. For example, in the early 2000s, investors with balanced, globally diversified portfolios experienced volatility, but also benefited from the stabilizing presence of high-quality bonds. Even during challenging periods, those who stayed invested and avoided emotional decisions generally recovered and advanced their financial goals. The key takeaways are clear: diversification is effective, stability is important, and patience is rewarding. These foundational principles are integrated into your portfolio today.
Preparation Over Prediction
Attempting to predict the precise timing of a market downturn is impossible and unnecessary. What truly matters is ensuring that your portfolio aligns with your specific goals, investment timeframe, and comfort with risk. Regular reviews of your plan, maintaining an appropriate mix of investments, and protecting assets needed in the near term from undue volatility are all critical steps—akin to repairing the roof while the weather is favourable. This proactive approach is taken seriously in the management of your portfolio.
Your Portfolio – Recent Adjustments
Following a strong period in both equity and credit markets, several deliberate changes were made to safeguard gains and enhance the overall quality of your portfolio:
Profits were trimmed in sectors where valuations had become extended.
The NBI Loan position was sold, with proceeds reinvested into high-quality BMO provincial bonds to improve credit quality and income stability.
An emphasis on balance and resilience was maintained, rather than pursuing short-term market moves.
These actions were proactive, not reactions to market headlines.
Gold Update
On Jan 30th, gold experienced a sharp pullback following changes in interest-rate expectations, prompted by President Trump’s nomination of a more hawkish Federal Reserve chair and remains up almost 29% . Your exposure to gold and precious metals remains at approximately 7%, a strategic allocation designed to diversify risk and provide protection during periods of uncertainty. Short-term fluctuations do not alter the long-term rationale for holding these assets.
Looking Ahead
The economic environment continues to be supportive: while growth has moderated, it remains positive; inflation is settling; and interest rates are showing signs of stabilizing. Market corrections are inevitable, but your portfolio is constructed to endure them through diversification, high-quality holdings, and disciplined rebalancing.
Bottom Line
The principles outlined above are not merely theoretical; they directly inform how your wealth is managed. While markets cannot be controlled, preparation, discipline, and thoughtful decision-making are within our control. By taking profits at appropriate times, enhancing credit quality, and ensuring that your portfolio remains aligned with your long-term objectives, the focus remains on what matters most: protecting your capital, fostering responsible growth, and providing peace of mind. If you would like to review any aspect of your plan or simply have a conversation, please do not hesitate to reach out. We are always here for you.
