We are all processing the significant developments over the weekend regarding the joint military strikes on Iran. With the confirmed death of Iran’s Supreme Leader and reports of retaliatory strikes across the Gulf, we have entered a period of heightened geopolitical risk that is already being reflected in the prices of oil, gold, and global equities.
While these events are unsettling, we want to share how your portfolios are positioned to navigate this environment. We prioritize building portfolios that are resilient in uncertain times and our adjustments over the last several months were made to ensure we are prepared for periods of increased market stress.

Our strategic positioning

We moved into 2026 with a more conservative stance than we held heading into 2025. Our focus has been on building a portfolio designed to endure various types of market disruptions. Below, we highlight a few ways that could help soften the portfolio impact of the current situation:

• Shock-absorber: We recently moved some of our investment funds out of the general stock market and into a market neutral fund. This fund acts as a “shock-absorber” as its strategy is not tied to the performance of the equity markets, either up or down.
• Value and international tilt: We transitioned toward international and value tilted equities. These areas often trade at more attractive valuations and tend to be more resilient than high growth sectors when investors prioritize safety first.
• Gold & oil: Through the Dynamic Strategic Gold Fund, we have direct exposure to gold, which generally acts as a safe haven during periods of volatility. Furthermore, our healthy allocation to the TSX Composite Index provides a counterbalance to the rest of our portfolio as the Canadian market is heavily weighted toward gold and oil equities.
• Bond buffer: We maintain a diversified bond exposure that includes both government issued debt and corporate bonds. This combination serves as an important component of a balanced portfolio by providing steady income and helping to soften the overall impact of stock market swings compared to an all equity approach.

Perspective on volatility

We expect our portfolios will experience volatility in the days and weeks ahead. It is uncomfortable to watch, and we understand the anxiety that comes with these headlines. However, it is precisely for moments like these that we prioritize diversification across different types of investments. This structure is intended to provide balance, allowing for the possibility that while some sectors face headwinds, others may remain resilient.

In a world that feels increasingly unpredictable, the most important discipline is to avoid reactive decision making. We remain humble in the face of these global events but confident in the guardrails we have put in place.

We also look to past instances of geopolitical upheaval and the subsequent market reaction. Using a sample that includes the September 11 attacks, COVID-19 pandemic, Russia’s invasion of Ukraine, and “liberation day” tariff announcement, the average performance of the S&P 500 was +3.3%, +5.9% and +13.3% in the following one-month, three-month and six-month period, respectively (based on data from Bloomberg).

Our team is here to provide clarity and support. If you have any concerns regarding your specific plan or would like to discuss these developments further, please do not hesitate to reach out.