Navigating Opportunity with Prudence and Purpose

As we step into 2026 together, I want to extend my warmest wishes for a year of meaningful experiences, good health, and personal achievement. Each new year brings with it a blend of optimism and uncertainty, and 2026 is no different. What distinguishes successful outcomes for long-term investors is not prediction, but preparation grounded in disciplined planning, diversified strategy, and a clear understanding of the evolving market landscape. As we saw in 2025, the investment landscape can be volatile, and it can change quickly from day to day, but the long-term outlook remains the same: a steady upwards march when holding proven, high-quality assets in a well-diversified portfolio designed for your objectives.

A Refreshing Market Backdrop

Recent market developments highlight a climate of cautious optimism. Broad equity markets continue to show resilience following strong returns in prior years. Some forecasters project further gains for major U.S. indexes in 2026, supported by accommodative monetary policy and sustained economic activity, whereas others have concerns for stagnating growth amid trade uncertainty. At the same time, global equities — including Canadian and international markets — are navigating headwinds from geopolitical tensions and shifting trade dynamics, but this also presents opportunity in the markets to seize on what may be the formation of a new economic global order. This environment reinforces the importance of global diversification and not having your assets tied to one region or country.

Inflation and Interest Rates — Lessons from 2025

Over the past year, inflation in major economies, including Canada, has generally moderated toward central bank targets. Policymakers continue to balance economic growth with price stability, and interest rate expectations remain a central driver of asset pricing, investor sentiment, and fixed income opportunity. Interest rates while lower than the past few years, remain elevated compared to the 2010’s and as such open new doors for fixed income opportunities when rebalancing from equities that have performed well in recent years. As such, it is no longer a shift into low performing assets, but rather a rebalancing that keeps portfolios aligned with their objectives without sacrificing returns.

The Canadian Economic Picture

Canada’s economy has demonstrated resilience, supported by consumer spending and a relatively stable labour market. Forecasts for 2026 suggest moderate growth, with inflation remaining near target levels. Commodity-linked sectors — particularly energy and resources — continue to play an important role in economic output, while currency fluctuations remain a consideration for globally invested Canadians. Canada also finds itself at a crossroads that it must manage going forward: navigating relations with the United States while also achieving its goal of establishing new frontiers abroad. This will likely be a continued focus for the government, and in 2026 we will likely see new developments for the nation that could be a boost to the overall economic strength of the nation.

Strategic Positioning for 2026

At Prittie Private Wealth, our approach remains grounded in balancing growth potential with prudent risk management. Markets do not move in straight lines, and disciplined portfolio construction remains essential. Our strategy emphasizes diversified asset allocation, valuation awareness, currency considerations, and comprehensive wealth planning integrating tax, retirement, and estate considerations. As such, we are harvesting growth from strong outperformers, building up strategic fixed income reserves to meet both income needs, as well as “dry powder” reserves, and continuing to evaluate the market and the underlying fundamentals of companies, their respective markets, and whether industries are overvalued, and if so, where gains can be moved in order to take advantage of undervalued economic sectors or opportunities.

2026 presents a landscape filled with promise and complexity. While markets will continue to evolve, the foundations of prudent investing remain unchanged: clarity of purpose, diversification, and discipline. Thank you for the continued trust you place in Prittie Private Wealth. We look forward to supporting your financial journey in the year ahead.

Written By: Adam Prittie