{"id":934,"date":"2026-10-21T14:21:11","date_gmt":"2026-10-21T14:21:11","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/constellationwealthmanagement\/?p=934"},"modified":"2026-10-21T14:40:33","modified_gmt":"2026-10-21T14:40:33","slug":"september-2026-portfolio-memo","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/constellationwealthmanagement\/september-2026-portfolio-memo\/","title":{"rendered":"September 2026 Portfolio Memo"},"content":{"rendered":"

Market commentary<\/strong><\/p>\n

Global stock markets have essentially flatlined since early June. The good news is that they have been consolidating near all-time highs. Despite several months of limited progress, year-to-date\u2014and certainly longer-term\u2014returns remain excellent.<\/p>\n

The bond market has been less resilient, with Canadian bonds falling 2.6% from June through September.\u00b9 Once again, traditional and index-based bond strategies have disappointed both in total returns and as a source of diversification.<\/p>\n

We have long argued that investors with appropriate liquidity needs and circumstances should maintain a healthy allocation to private assets. The objective is to improve diversification and enhance a traditional portfolio of stocks and bonds. Over the past several months, our private-asset strategies have done exactly that, producing positive returns while traditional markets have languished.\u00b2<\/p>\n

Periods of flat stock-market returns\u2014often called consolidations\u2014are generally healthy, particularly when corporate earnings and economic fundamentals remain strong, as they have. When earnings rise while stock prices remain flat, valuations improve. Periods of stability also give investors an opportunity to assess market conditions and proactively rebalance their portfolios.<\/p>\n

Consider the backdrop: interest rates near their highest levels in decades, sky-high energy prices, multiple major wars, pending U.S. midterm elections, and the ongoing political circus south of the border. I could go on, but you get the point\u2014it is an unsettling time.<\/p>\n

Against that backdrop, it is quite impressive that global stocks remain within a few percentage points of their all-time highs. If even some of the major sources of uncertainty are resolved, markets could be positioned for an impressive rebound.<\/p>\n

We used the weakness in fixed income as a tax-saving opportunity in taxable accounts. By realizing losses and temporarily repositioning the proceeds into different fixed-income investments during the superficial-loss period (30 days), we were able to offset a meaningful portion of capital gains realized so far this year. This is one example of how we continually look for opportunities to optimize your portfolio, retirement income, estate plan\u2014ultimately, your wealth.<\/p>\n

Chart of the month: President Trump’s report card<\/span><\/strong><\/span><\/p>\n

 <\/p>\n

\"\"<\/p>\n

It is often said that President Donald Trump considers the stock market his report card. If that is the case, he has earned an A+ from the rest of the world.<\/p>\n

Given his administration\u2019s aggressive \u201cAmerica First\u201d policies, that is probably not the outcome most investors expected. Its objectives of lowering energy prices and bond yields while weakening the U.S. dollar have also failed to materialize. In fact, all three have moved substantially in the opposite direction.<\/p>\n

I\u2019ll stay in my lane and leave the political commentary to others. What I am qualified to comment on is portfolio management, and this is a great example of why diversification is so important\u2014and so often rewarding. The investments expected to perform best don’t always deliver. You simply never know what the future holds; invest accordingly.<\/p>\n

Content Recommendation: Canada is a sleeping giant economically<\/strong><\/p>\n

Blackstone President Jon Gray identifies Canada as an economic “sleeping giant,” citing its immense natural resources and skilled talent as key strengths. He suggests that by addressing historical regulatory<\/p>\n

and permitting challenges, Canada can leverage its low-cost energy and abundant land to attract private capital and drive significant future growth.<\/p>\n

Canada is a Sleeping Giant Economically<\/a><\/p>\n

Portfolio strategy:<\/strong><\/p>\n

Debt<\/strong><\/p>\n

Liquid fixed income<\/p>\n