{"id":894,"date":"2026-02-15T11:47:00","date_gmt":"2026-02-15T16:47:00","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/?p=894"},"modified":"2026-09-15T12:09:34","modified_gmt":"2026-09-15T16:09:34","slug":"marche-monthly-78-february-2026","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/marche-monthly-78-february-2026\/","title":{"rendered":"Marche Monthly #78 \u2013 February 2026"},"content":{"rendered":"

FEAR & GREED <\/span><\/strong><\/p>\n

Every morning when I get up, I read the news from overnight, look at the market futures, and the <\/span>Fear & Greed Index<\/span><\/a>.<\/span><\/p>\n

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

Measured out of 100, on January 28 it was at 66: Greed.<\/span><\/p>\n

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

As of March 13, it was at 21: Extreme Fear.<\/span><\/p>\n

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

How should we be interpreting this information? We are guided by one of Warren Buffett\u2019s most famous maxims:<\/span><\/p>\n

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

\u201cBe fearful when others are greedy, and greedy when others are fearful.\u201d<\/span><\/p>\n

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

Therefore, we are watching very carefully for companies we believe are priced below their intrinsic value, and which meet the stringent criteria of our investment philosophy (see below, the War subheading, for details).<\/span><\/p>\n

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

Why is there so much fear in the market? The military conflict in the Middle East and the upward pressure it is putting on oil prices are the primary driving forces.<\/span><\/p>\n

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

Inflationary pressure is being created, especially by the risk to the Strait of Hormuz, a narrow shipping lane through which roughly one-fifth of the world\u2019s oil supply passes. This is also setting the table for a rise in the valuations of some companies in the energy and industrial sectors. <\/span><\/p>\n

We have been prepared for this kind of situation for some time, because last year we added to the energy holdings in our portfolios by buying companies including Rockpoint, South Bow, and Canadian Natural Resources. In addition to adding carefully selected energy companies, we also added industrial businesses, including Honeywell and MDA, which give us exposure to defence. <\/span><\/p>\n

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

These new positions increase our exposure to energy, industrial, and defence companies, and make our portfolios more defensive. These have proven to be constructive moves for our clients.<\/span><\/p>\n

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

BUT:<\/span><\/strong>
\nCanada\u2019s ability to fully capitalize on rising oil prices is constrained by limited pipeline capacity, which restrains how quickly exports can increase.<\/span><\/p>\n

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

Pipeline capacity is a crucial national challenge. Demonstrating the push-pull that exists in this country, two contrasting stories appeared in the news within 24 hours of each other last week:<\/span><\/p>\n

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

Ottawa and Alberta reached a prospective deal to streamline major project approvals<\/span><\/a><\/p>\n

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

CNRL says it will delay $8-billion mine expansion until carbon pricing rules are clear<\/span><\/a><\/p>\n

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

Can Canada start to fulfill its destiny as one of the world\u2019s richest countries? We shall see.<\/span><\/p>\n

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

CONSUMERS PAY TARIFFS<\/span><\/strong><\/p>\n

As we have said before in this blog, consumers pay tariffs. This is because importers simply pass on the cost to their customers.<\/span><\/p>\n

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

The Trump administration does not share our view. Yet there is rising inflation in the U.S. It has taken a while for inflation to appear because companies did the logical thing in advance of tariffs: stock up on inventory at pre-tariff prices. <\/span><\/p>\n

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

We also have a <\/span>study <\/span><\/a>from the Kiel Institute, considered by organizations that measure media bias to be among the least-biased research bodies. It concludes that consumers in the U.S. are bearing 96% of the tariff burden.<\/span><\/p>\n

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

The Kiel Institute sums it up this way:<\/span><\/p>\n

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

\u201cTariffs do not transfer wealth from foreigners to Americans. They transfer wealth from American consumers to the US Treasury.\u201d<\/span><\/p>\n

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

And now we have a <\/span>statement<\/span><\/a> from the CEO of one of America\u2019s most respected companies, Costco, in which he says that the refund Costco receives from the federal government, as a result of the U.S. Supreme Court striking down many of Trump\u2019s tariffs, will be passed along directly to customers in the form of lower prices.<\/span><\/p>\n

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

RAISE INTEREST RATES?<\/span><\/strong><\/p>\n

Despite rising inflation due to tariffs and oil prices, we do not support the idea of either the Bank of Canada or the U.S. Federal Reserve raising interest rates. Tariff-driven inflation comes from higher costs caused by trade policies, and higher interest rates cannot reduce those costs\u2014or energy price pressures. Raising rates would risk slowing economic growth without addressing the underlying causes of the price increases.<\/span><\/p>\n

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

WAR <\/span><\/strong><\/p>\n

War creates incredible human suffering. As citizens, we pray for the people affected and hope for a quick end to the hostilities. As investors, we must always be prepared for the disruption caused by war, a responsibility we take very seriously and which we have delivered upon in recent years, as in the Russian invasion of Ukraine and the volatility it created in the markets.<\/span><\/p>\n

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

The fact is this: our portfolios will <\/span>aim to <\/span>do well no matter what is happening in the world\u2014as long as we continue to follow our equity philosophy. We tend to manage concentrated portfolios composed of quality businesses we want to own for many years.\u00a0We believe this approach will maximize long-term performance, improve after-tax returns and keep costs to a minimum. We focus on owning companies which:<\/span><\/p>\n

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

\n
\n
\u2022<\/span>\u00a0<\/span>Have a track record of creating shareholder value<\/span><\/div>\n<\/div>\n
\n
\u2022<\/span>\u00a0<\/span>Have management that treats shareholders as partners<\/span><\/div>\n<\/div>\n
\n
\u2022<\/span>\u00a0<\/span>Are trading below intrinsic value<\/span><\/div>\n<\/div>\n
\n
\u2022<\/span>\u00a0<\/span>Have a simple, easy-to-understand business model<\/span><\/div>\n<\/div>\n<\/div>\n

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

Another key message: stay invested. History provides a valuable perspective. While geopolitical shocks often generate short-term market volatility, they have had limited influence on the longer-term direction of the market. Across roughly two dozen significant military conflicts since 1950, the S&P 500\u2014which we consider to be the authoritative indicator of how the markets are doing\u2014delivered positive returns twelve months later nearly three-quarters of the time.<\/span><\/p>\n

 <\/p>\n

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

LOOKING AHEAD <\/span><\/strong><\/p>\n

I want to emphasize that our portfolios have performed well in an environment of geopolitical and market volatility because our models do not own the market, but have focused on owning a select concentration of companies, selected according to the criteria in the section just above.<\/span><\/p>\n

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

TAX SEASON DATES <\/span><\/strong><\/p>\n

Registered Retirement Savings Plan (RRSP) season is important because of the power of tax-sheltered compound growth, which ends March 2. Tax season continues, and we are working as always with our clients and their accountants. Key dates include:<\/span><\/p>\n

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

\n
\n
\u2022<\/span>\u00a0<\/span>April 30, 2026: last day to file your 2025 tax return without penalty.<\/span><\/div>\n
\n
\n
\u25e6<\/span>\u00a0<\/span>June 15, 2026: last day to file your 2025 tax return without penalty if you are self-employed.<\/span><\/div>\n<\/div>\n<\/div>\n

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

I always welcome you and your family, friends, and colleagues to contact me with any questions or concerns. Because it is, after all\u2026<\/span><\/p>\n

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

\u2026THAT TIME, *AGAIN*<\/span><\/strong><\/p>\n

February 2\u2014Groundhog Day\u2014has come and gone, and every year at this time, we get calls from our clients\u2019 family, friends, and colleagues with their concerns that they are not doing as well financially as they could be.<\/span><\/p>\n

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

They are assessing their investment returns. On top of that, they are in the middle of tax time, and man<\/span>y of them are facing the hard reality that when it comes to investing, it\u2019s what you keep after tax that really matters. And so they are asking themselves: \u201cCan I do better?\u201d<\/span><\/p>\n

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

Very often, as we tell many new clients, the answer is \u201cyes.\u201d<\/span><\/p>\n

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

Do you know someone who should be talking to us? We would be happy to hear from you, or someone you care about, and as always, will provide a complimentary analysis of the situation, with absolutely no cost or obligation. We are here, as always.<\/span><\/p>\n<\/div>\n<\/div>\n

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

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

We don\u2019t speak jargon. We\u2019re all about uncomplicating your life, so we speak plain English. If there is someone you care about\u2014someone who would appreciate this simple approach\u2014please feel free to share this message with them or put us in touch.<\/em><\/span><\/p>\n

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

Want to discuss any aspect of this month\u2019s blog, or any other issue on your mind? Have a story idea? I am always happy to receive your call or email.<\/em><\/span><\/p>\n

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

Tyler Marche,<\/span> MBA, CFP\u00ae, CIM, FMA, FCSI\u00ae<\/span><\/p>\n

Your life, uncomplicated<\/em><\/span><\/p>\n

tyler.marche@wellington-altus.ca<\/span><\/a><\/p>\n

416.446.5432<\/span><\/p>\n

marchewealth.ca<\/span><\/a><\/p>\n

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

WHO WE ARE<\/span><\/strong><\/p>\n

Tyler Marche, MBA, CFP\u00ae, CIM, FMA, FCSI\u00ae \u2013 Senior Wealth Advisor & Senior Portfolio Manager<\/p>\n

Elizabeth Yip \u2013 Senior Investment Associate<\/p>\n

Joy Loewen \u2013 Associate<\/p>\n

Tracy McClure \u2013 Associate<\/p>\n

Matthew Wilcox \u2013 Associate<\/p>\n","protected":false},"excerpt":{"rendered":"

FEAR & GREED Every morning when I get up, I read the news from overnight, look at the market futures, and the Fear & Greed Index. . Measured out of 100, on January 28 it was at 66: Greed. . As of March 13, it was at 21: Extreme Fear. . How should we be […]<\/p>\n","protected":false},"author":193,"featured_media":895,"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,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-monthly-update"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/posts\/894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/users\/193"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/comments?post=894"}],"version-history":[{"count":1,"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/posts\/894\/revisions"}],"predecessor-version":[{"id":896,"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/posts\/894\/revisions\/896"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/media\/895"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/media?parent=894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/categories?post=894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/marchewealthmanagement\/wp-json\/wp\/v2\/tags?post=894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}