{"id":851,"date":"2026-05-25T15:04:32","date_gmt":"2026-05-25T15:04:32","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/constellationwealthmanagement\/?p=851"},"modified":"2026-05-25T15:04:32","modified_gmt":"2026-05-25T15:04:32","slug":"april-2026-portfolio-memo","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/constellationwealthmanagement\/april-2026-portfolio-memo\/","title":{"rendered":"April 2026 Portfolio Memo"},"content":{"rendered":"

Market commentary<\/span><\/b><\/p>\n

Following one of the worst months in years, April delivered the S&P 500\u2019s strongest monthly return since November 2020. With the benefit of hindsight\u2014post-recovery and back to new highs\u2014this volatility can look like much ado about nothing. However, based on the dozens of calls we fielded in March, bouts of volatility have a very real impact on investor psyche. Anything that erodes confidence has the potential to derail long-term strategies.\u00a0<\/span>That\u2019s precisely why our investment approach is designed to dampen volatility. Statistically, smoother returns improve the probability of meeting a return objective, in part because they reduce the importance of timing. The smoother the return path, the less likely you are to invest immediately before\u2014or after\u2014a major market event. And the easier it is to forecast returns, the easier it becomes to plan a lifestyle around the portfolio.<\/span><\/p>\n

April was an impressive month for portfolios, outperforming benchmarks by a healthy margin. To recap: we captured substantially less of the downside in March and meaningfully more of the upside in April. Some might call that the Holy Grail!<\/span><\/p>\n

Despite one of the most tenuous geopolitical environments I can recall, economic growth remains resilient and equity markets continue to deliver strong returns. It behooves investors to look past the headlines and consider whether positive changes are unfolding beneath the surface\u2014changes that may not be reflected in the daily news cycle. There are structural shifts underway in the global economy that are difficult to quantify. The impact of artificial intelligence (AI), for example, is likely to be significant, but also hard to measure in real time. Many have argued that valuations are stretched, but the reality is that returns have been among the strongest in history. We understand the world can feel uncertain, but change often produces prosperity rather than hardship. It\u2019s possible we\u2019re on the cusp of a period of meaningful positive transformation, and\u00a0<\/span>markets appear to be reflecting that possibility. As investors, it\u2019s incumbent upon us to participate in that growth. At the same time, with meaningful change comes meaningful risk\u2014so we seek only as much exposure to risk as is necessary.<\/span><\/p>\n

Striking that balance isn\u2019t easy, but it\u2019s exactly what we focus on every day.<\/span><\/p>\n

Chart of the month:<\/strong><\/h5>\n

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The March sell-off was most severe for tech companies. That drop in price as earnings continued to grow impressively led to valuations plummeting. That valuation-check eased a major concern we have held for several months, leaving us with more reasonable valuations on the best companies around and a more balanced market. <\/span><\/p>\n

Content recommendation:\u00a0<\/span><\/b>Blackstone Q2 market views<\/span><\/b><\/h3>\n

Jon Gray breaks down Blackstone\u2019s portfolio and provides sage advice on staying the course in today\u2019s volatile environment.<\/span><\/p>\n

How Blackstone Is Thinking About IPOs, Hard Assets & AI Investing | Jon Gray\u2019s Market Views Q2 2026<\/a><\/p>\n

Portfolio strategy<\/span><\/b><\/p>\n

Debt<\/span><\/b><\/p>\n

Liquid fixed income<\/span><\/p>\n

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