{"id":3626,"date":"2026-05-21T13:59:34","date_gmt":"2026-05-21T17:59:34","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/?p=3626"},"modified":"2026-05-21T16:36:55","modified_gmt":"2026-05-21T20:36:55","slug":"executive-summary-wellington-altus-private-wealth-inc-may-2026-market-update","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/2026\/05\/21\/executive-summary-wellington-altus-private-wealth-inc-may-2026-market-update\/","title":{"rendered":"EXECUTIVE SUMMARY \u2013 WELLINGTON-ALTUS PRIVATE WEALTH INC. MAY 2026 MARKET UPDATE"},"content":{"rendered":"

Dear Friends & Clients,<\/p>\n

Spring has finally started to show up here in Canada. It\u2019s that in-between season\u2014too cold for the lake, too warm for the slopes\u2014but perfect for getting outside, firing up the barbecue, and catching your breath after a busy winter.<\/p>\n

It\u2019s also a good time to step back, take stock, and look at where things stand.<\/p>\n

.<\/span><\/span><\/p>\n

2025 Taxes<\/span><\/strong><\/p>\n

After a busy month of April, tax season is wrapping up. Many of you noticed a higher tax bill this year, which is a side effect of a very good “problem” to have: our conservative equity portfolios compounded at over 24% per year over the last three years. To maintain our strict risk controls, we had to trim several major winners like Nvidia, Tesla, and AMD once they grew beyond a 10% portfolio weighting. This triggered an average of around 10% in capital gain across our clients\u2019 taxable portfolios. Fortunately, Canada\u2019s capital gains tax rates (around 20% to 25% depending on your bracket) remain quite favorable compared to our high income tax rates.<\/p>\n

We will continue to manage things in as tax-efficient a manner as possible as we always have. At the same time, we must be vigilant in managing risk, protecting capital, and ensuring our capital is as well deployed as possible, even if it means triggering capital gains from time to time.<\/p>\n

.<\/span><\/span><\/p>\n

Performance Update<\/span><\/strong><\/p>\n

April delivered one of the best single-month returns we\u2019ve seen in the last 20 years, rivaling the January 2009 rebound and the April 2020 pandemic recovery. Our Conservative Equity portfolio was up over 10% for the month, and the Focus Total Return portfolio was up nearly 14%. When we look at the long-term compounding of these strategies, the numbers speak for themselves:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Investment Performance (%)<\/span><\/strong><\/p>\n<\/td>\n

\n

.<\/span><\/span><\/p>\n<\/td>\n

\n

.<\/span><\/span><\/p>\n<\/td>\n

\n

.<\/span><\/span><\/p>\n<\/td>\n

\n

.<\/span><\/span><\/p>\n<\/td>\n

\n

.<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

As of April 31, 2026<\/span><\/strong><\/p>\n<\/td>\n

\n

YTD<\/span><\/strong><\/p>\n<\/td>\n

\n

1Y<\/span><\/strong><\/p>\n<\/td>\n

\n

3Y<\/span><\/strong><\/p>\n<\/td>\n

\n

5Y<\/span><\/strong><\/p>\n<\/td>\n

\n

SI<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

CONSERVATIVE EQUITY TOTAL GROSS RETURN (CAD)<\/span><\/p>\n<\/td>\n

\n

4.7%<\/span><\/strong><\/p>\n<\/td>\n

\n

37.8%<\/span><\/strong><\/p>\n<\/td>\n

\n

24.8%<\/span><\/strong><\/p>\n<\/td>\n

\n

13.4%<\/span><\/strong><\/p>\n<\/td>\n

\n

15.6%<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Benchmark <\/span>(50% DJ US Div 100; 45% S&P\/TSX 60, 5% S&P Can T-Bill)<\/span><\/p>\n<\/td>\n

\n

12.3%<\/span><\/p>\n<\/td>\n

\n

30.9%<\/span><\/p>\n<\/td>\n

\n

16.4%<\/span><\/p>\n<\/td>\n

\n

11.6%<\/span><\/p>\n<\/td>\n

\n

12.3%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Morningstar Category (Global Neutral Equity)<\/span><\/p>\n<\/td>\n

\n

-2.1%<\/span><\/p>\n<\/td>\n

\n

12.0%<\/span><\/p>\n<\/td>\n

\n

13.2%<\/span><\/p>\n<\/td>\n

\n

8.1%<\/span><\/p>\n<\/td>\n

\n

9.4%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

DIVERSIFIED INCOME TOTAL GROSS RETURN (CAD)<\/span><\/p>\n<\/td>\n

\n

0.8%<\/span><\/strong><\/p>\n<\/td>\n

\n

18.6%<\/span><\/strong><\/p>\n<\/td>\n

\n

13.0%<\/span><\/strong><\/p>\n<\/td>\n

\n

9.3%<\/span><\/strong><\/p>\n<\/td>\n

\n

10.7%<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Benchmark<\/span> (35% S&P Can Bond; 25% S&P Can Div; 25% DJ US Div 100; 10% MSCI EAFE, 5% S&P Can T-Bill)<\/span><\/p>\n<\/td>\n

\n

7.7%<\/span><\/p>\n<\/td>\n

\n

19.7%<\/span><\/p>\n<\/td>\n

\n

11.5%<\/span><\/p>\n<\/td>\n

\n

8.0%<\/span><\/p>\n<\/td>\n

\n

N\/A<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Morningstar Category (Global Neutral Balanced)<\/span><\/p>\n<\/td>\n

\n

0.0%<\/span><\/p>\n<\/td>\n

\n

8.9%<\/span><\/p>\n<\/td>\n

\n

9.6%<\/span><\/p>\n<\/td>\n

\n

5.8%<\/span><\/p>\n<\/td>\n

\n

N\/A<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

FOCUSED TOTAL RETURN TOTAL GROSS RETURN (CAD)<\/span><\/p>\n<\/td>\n

\n

10.1%<\/span><\/strong><\/p>\n<\/td>\n

\n

54.4%<\/span><\/strong><\/p>\n<\/td>\n

\n

31.0%<\/span><\/strong><\/p>\n<\/td>\n

\n

18.1%<\/span><\/strong><\/p>\n<\/td>\n

\n

23.4%<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Benchmark<\/span> (40% DJ US Div 100; 35% S&P\/TSX 60, 20% S&P Can Bond, 5% S&P Can T-Bill)<\/span><\/p>\n<\/td>\n

\n

9.9%<\/span><\/p>\n<\/td>\n

\n

24.7%<\/span><\/p>\n<\/td>\n

\n

13.6%<\/span><\/p>\n<\/td>\n

\n

9.3%<\/span><\/p>\n<\/td>\n

\n

N\/A<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Morningstar Category (Tactical Balanced)<\/span><\/p>\n<\/td>\n

\n

1.2%<\/span><\/p>\n<\/td>\n

\n

10.3%<\/span><\/p>\n<\/td>\n

\n

8.8%<\/span><\/p>\n<\/td>\n

\n

5.3%<\/span><\/p>\n<\/td>\n

\n

N\/A<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

S&P 500 (NR USD) – USA<\/span><\/p>\n<\/td>\n

\n

5.6%<\/span><\/p>\n<\/td>\n

\n

30.6%<\/span><\/p>\n<\/td>\n

\n

21.2%<\/span><\/p>\n<\/td>\n

\n

12.7%<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

S&P TSX 60 (NR CAD) – CANADA<\/span><\/p>\n<\/td>\n

\n

7.3%<\/span><\/p>\n<\/td>\n

\n

35.3%<\/span><\/p>\n<\/td>\n

\n

19.5%<\/span><\/p>\n<\/td>\n

\n

14.3%<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

MSCI EAFE (GR CAD) – EUROPE<\/span><\/p>\n<\/td>\n

\n

5.6%<\/span><\/p>\n<\/td>\n

\n

23.4%<\/span><\/p>\n<\/td>\n

\n

16.0%<\/span><\/p>\n<\/td>\n

\n

11.6%<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*Your own returns will vary depending on the amount of fixed income you hold, cash flows in and out, and management fees.<\/p>\n\n\n\n\n
\n

LARGEST MUTUAL FUND IN CANADA (1.94% MER FEE)<\/span><\/strong><\/p>\n<\/td>\n

\n

YTD<\/span><\/strong><\/p>\n<\/td>\n

\n

1Y<\/span><\/strong><\/p>\n<\/td>\n

\n

3 yr<\/span><\/strong><\/p>\n<\/td>\n

\n

5 yr<\/span><\/strong><\/p>\n<\/td>\n

\n

10 yr<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

RBC SELECT BALANCED PORTFOLIO FUND (A) NET RETURN (CAD)<\/span><\/p>\n<\/td>\n

\n

4.2%<\/span><\/strong><\/p>\n<\/td>\n

\n

17.9%<\/span><\/strong><\/p>\n<\/td>\n

\n

11.7%<\/span><\/strong><\/p>\n<\/td>\n

\n

6.5%<\/span><\/strong><\/p>\n<\/td>\n

\n

7.1%<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

.<\/span><\/span><\/p>\n

.\"\"<\/span><\/span>\"\"<\/p>\n

 <\/p>\n

Portfolio Moves & The Beauty of Simplicity<\/span><\/strong><\/p>\n

We like to buy wonderful businesses and let them do the heavy lifting, but occasionally the market gives us a fat pitch. Late last month, we trimmed a flat-trading Berkshire Hathaway position to buy more Micron on a pullback around US $360. Today, Micron is trading over $800. When we added to Micron, it was trading at an incredibly cheap four times future earnings. Strategic moves like this aim to add 1% or 2% alpha to our returns over time.<\/p>\n

In other portfolio news, Brookfield is exploring merging its dual trust and corporate unit structures into a single corporate structure. These exist for both Brookfield Renewable Partners and Brookfield Infrastructure Partners. While trust structures previously allowed for higher distribution rates by avoiding corporate taxes, they also generated frustrating tax slips for those in taxable accounts. On the investment side there are also many large international investors that are not able to own trust units, excluding the trust units from many potential investors. If it proceeds, we see this simplification of structure as largely positive, paving the way for greater inclusion in market indexes and access to a larger pool of potential investors, which would push the share price higher.<\/p>\n

As a side note, Cameco’s recent earnings call highlighted massive global interest in the AP1000 micro-reactors. This is fantastic news for Brookfield Renewable, which owns 51% of Westinghouse, the creator of those reactors. The combination of a tremendous business in a growing sector, along with a simplified share structure, reinforce our view of the potential in Brookfield\u2019s businesses.<\/p>\n

.<\/span><\/span><\/p>\n

The Main Event: Earnings & The AI Infrastructure Race<\/span><\/strong><\/p>\n

We are witnessing a massive shift in technology, but the limiting factors for artificial intelligence (AI) aren’t just software\u2014they are physical chips and electrical power. Companies like Anthropic have incredible demand for their AI models but are bottlenecked by a lack of compute power, forcing them to limit access. Because hyperscalers own the servers, they hold all the leverage. We’ve positioned your portfolios to benefit from these “tollbooth” businesses.<\/p>\n

Here are the highlights from a stellar earnings season:<\/p>\n

\n
\n
\u2022<\/span>\u00a0<\/span>Amazon:<\/span><\/strong> Amazon Web Services (AWS) saw its largest growth rate in 15 years, hitting 28%. CEO Andy Jassy revealed the company now has US $15 billion in annualized AI revenue. Furthermore, their delivery margins are expanding, reaching their highest operating margin ever at over 13%.<\/div>\n<\/div>\n
\n
\u2022<\/span>\u00a0<\/span>Google (Alphabet):<\/span><\/strong> Google was perhaps the biggest winner this earnings season. Cloud revenue grew 63%, with Generative AI revenue growing an astounding 800% year-over-year. CEO Sundar Pichai noted that AI is now the top growth driver for their cloud division.<\/div>\n<\/div>\n
\n
\u2022<\/span>\u00a0<\/span>Microsoft:<\/span><\/strong> Microsoft guided their capital expenditures up to $190 billion for the year as they build out more infrastructure. They also sit on a massive $400 billion backlog of legal commitments for their AI and infrastructure services over the next few years.<\/div>\n<\/div>\n
\n
\u2022<\/span>\u00a0<\/span>AMD:<\/span><\/strong> AMD’s data center business is now its largest segment, growing 57% year-over-year. With “Agentic AI” demanding vastly more CPUs than expected, AMD has nearly doubled its expected annual growth rate for the CPU market to 35% going forward.<\/div>\n<\/div>\n
\n
\u2022<\/span>\u00a0<\/span>Apple:<\/span><\/strong> Apple’s phone sales are accelerating to the point of being supply-constrained. More importantly, CEO Tim Cook announced his retirement effective September 1, passing the torch to hardware engineer John Ternus. Over his 15 years, Cook compounded Apple’s stock at an average of 22% per year\u2014an incredible legacy. Apple also announced a massive $100 billion share buyback.<\/div>\n<\/div>\n
\n
\u2022<\/span>\u00a0<\/span>Eli Lilly:<\/span><\/strong> Eli Lilly beat earnings expectations by 23%, driven by 125% year-over-year growth for their Mounjaro drug. They are launching an oral GLP-1 pill next quarter, and their next-generation drug, Retatrutide, is showing incredible broader health benefits like reducing liver fat and blood pressure.<\/div>\n<\/div>\n
\n
\u2022<\/span>\u00a0<\/span>Visa:<\/span><\/strong> Consumer spending remains incredibly strong, and Visa’s stablecoin business grew an impressive 50% year-over-year.<\/div>\n<\/div>\n<\/div>\n

.<\/span><\/span><\/p>\n

Global Macro & The View from the Porch<\/span><\/strong><\/p>\n

Despite global tensions, such as those in the Strait of Hormuz causing oil and bond yields to fluctuate, markets remain incredibly resilient. We started last month at “peak fear” and ended with immense optimism due to businesses executing so well.<\/p>\n

Lending rates remain somewhat elevated, putting pressure on the housing market. However, as inflation cools and rates eventually recede, paired with expanding corporate profits, we see a highly constructive environment for equities. On the geopolitical front, we are carefully watching the upcoming meeting between Chinese President Xi Jinping and U.S. President Donald Trump, the USMCA review in July, and the U.S. midterms this November.<\/p>\n

Closer to home, the federal government’s proposed “Canada Strong Fund” (a sovereign wealth fund) has sparked a lot of debate. While we remain cautious given the government’s track record of red tape and economic stagnation over the last decade, there is a potential silver lining. If structured properly, co-investing public funds alongside private capital (like BlackRock or Blackstone) could incentivize progress, fast-track infrastructure approvals, and allow the public to share in the economic upside. Only time will tell.<\/p>\n

.<\/span><\/span><\/p>\n

Closing Thoughts<\/span><\/strong><\/p>\n

Looking ahead, we are maintaining our target of 8,000 for the S&P 500 by year-end. Businesses are executing exceptionally well, profit margins are expanding, and the economic engines are humming.<\/p>\n

Spring is here, the markets are green, and it’s time to enjoy the warmer weather. My brother and I are deeply grateful for your continued trust and partnership with the Hale Investment Group. If you ever have any questions about your portfolio, our lines are always open.<\/p>\n

Fire up the barbecue, and we will talk to you next month.<\/p>\n

Warmly,<\/p>\n

Michael <\/span>& Simon Hale<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Dear Friends & Clients, Spring has finally started to show up here in Canada. It\u2019s that in-between season\u2014too cold for the lake, too warm for the slopes\u2014but perfect for getting outside, firing up the barbecue, and catching your breath after a busy winter. It\u2019s also a good time to step back, take stock, and look […]<\/p>\n","protected":false},"author":193,"featured_media":1889,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-3626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-monthly-updates"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/posts\/3626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/users\/193"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/comments?post=3626"}],"version-history":[{"count":13,"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/posts\/3626\/revisions"}],"predecessor-version":[{"id":3638,"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/posts\/3626\/revisions\/3638"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/media\/1889"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/media?parent=3626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/categories?post=3626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/haleinvestmentgroup\/wp-json\/wp\/v2\/tags?post=3626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}