April 2026 Update

Market Update

Here is a recap of the most recent stock market performance:

Year	Canada	US	Europe	Emerging Markets	World
2026 Q1	3.26%	-4.52%	-0.85%	2.19%	-3.05%
2025	30.94%	17.75%	21.32%	32.06%	18.94%
2024	22.97%	25.08%	8.43%	13.70%	21.57%
2023	13.31%	27.10%	15.04%	10.29%	23.75%
2022	-5.78%	-19.46%	-7.97%	-15.16%	-15.62%
2021	25.79%	26.97%	23.32%	0.14%	24.71%
2020	4.35%	21.37%	-1.71%	19.50%	14.06%
2019	22.00%	31.64%	24.57%	18.51%	28.07%%
2018	-9.04%	-4.50%	-10.02%	-9.72%	-6.86%
2017	9.22%	21.90%	13.72%	31.00%	19.13%
2016	21.15%	11.61%	7.90%	10.11%	9.65%
2015	-8.36%	1.32%	5.45%	-5.40%	2.65%
2014	11.43%	13.36%	5.22%	5.57%	10.40%
2013	13.58%	32.61%	22.26%	3.79%	29.57%

Source: MSCI gross returns including dividends, all returns in local currency, to March 31, 2026

Stock Market Performance

The first quarter of 2026 delivered a stark divergence in global equity markets, with Canadian stocks once again proving their resilience relative to our southern neighbour. Canada advanced +3.26% while the United States declined -4.52%, and the broader World Index fell -3.05%. Emerging Markets posted a modest gain of +2.19%, while Europe slipped -0.85%.

Trade policy uncertainty dominated the quarter. The US administration moved forward with tariff measures affecting key trading partners, including Canada, prompting a targeted response. This escalation weighed on business confidence and pressured US equities, particularly in sectors exposed to global supply chains and consumer demand.

Canada’s relative outperformance reflects a continuation of themes that supported strong results in 2025. The materials sector – particularly gold and precious metals – benefited from elevated safe-haven demand amid policy and geopolitical uncertainty. A modestly weaker Canadian dollar provided an additional tailwind for exporters, while financials contributed stability. Energy markets also remained supported, with infrastructure improvements continuing to enhance realized pricing for Canadian producers.

Central banks maintained a cautious stance. The Bank of Canada held rates steady, balancing trade-related economic risks against persistent inflation pressures. Similarly, the Federal Reserve remained on hold, with markets adjusting expectations for the pace of future rate cuts. Bond yields were volatile as investors assessed the evolving outlook for growth and inflation.

After two exceptional years, a period of consolidation and volatility for Canadian equities is normal and healthy. The fundamentals underpinning our domestic market remain sound, and diversification across geographies continues to manage risk through periods of regional uncertainty.

Keeping Perspective – What History Tells Us

If the headlines this quarter made you uneasy, that reaction is entirely human. Markets declined. Trade tensions escalated. Politicians on both sides of the border said alarming things. It felt like something was breaking.

But here is what history tells us; it almost always feels that way during a downturn. The reasons stock markets decline changes (tariffs, recessions, pandemics, interest rate crises, geopolitical conflicts, etc.) but the feeling is remarkably consistent. And so is what happens next.

Since 1950, the US stock market has experienced a decline of 10% or more once every two years. It has experienced a decline of 20% or more approximately every six years. Every single time, investors faced a choice between staying the course and doing something that felt more decisive. And every single time, the investors who stayed the course came out ahead.

Consider what clients lived through in just the last fifteen years: the European debt crisis, the oil price collapse, a global pandemic that shut down economies worldwide, the fastest interest rate increase cycle in forty years, and now a significant trade conflict with our largest trading partner. Through all of it, a diversified, long-term portfolio continued to build wealth. Not without volatility, but consistently, over time.

The current tariff situation deserves context. Trade disputes are not new. Canada and the United States have navigated contentious trade negotiations before. The original Canada-US Free Trade Agreement in 1988 was deeply divisive and highly uncertain at the time. NAFTA was renegotiated under significant political pressure in 2018. In each case, the economic relationship between our two countries ultimately proved too important to either side to abandon. That does not mean the current situation resolves quickly or painlessly. It means that the long-term economic logic of Canada-US trade has survived serious political stress before.

What does change in volatile periods is investor behaviour, and that is where most of the damage actually occurs. Academic evidence is consistent: the average investor earns meaningfully less than the market over time, not because their investments underperformed, but because they bought high and sold low in response to fear. The cost of reacting to short-term noise is paid in long-term returns.

Your portfolio was built with exactly this in mind. The income needed in the near term is protected in GICs and high-yield savings and not exposed to daily market swings. Growth assets are positioned to recover and compound over time. The strategy was designed for quarters like this one.

BC Property Tax Deferment Program – Important Changes for 2026

The BC Property Tax Deferment Program allows eligible homeowners to defer their annual property taxes through a government loan secured against their home. To qualify, you need to be 55 or older, a surviving spouse, a person with a disability, or a qualifying family with children, and the property must be your principal residence.

Under the old rules (up to 2025), this was a very attractive option. The interest rate was prime minus 2% and it was simple interest, meaning it did not compound. In plain terms, it was a low-cost, predictable way to improve cash flow without creating a rapidly growing balance.

Starting in 2026, that changes. New deferrals are now charged at prime plus 2%, and interest compounds monthly. Your balance will grow faster because you are now paying interest on interest.

If you are already deferring, this creates a clear decision point. Your existing balance keeps the old, favourable terms, but any new deferrals are more expensive. Going forward, deferring should not be automatic, and it should be compared against other options. In many cases, it may make more sense to pay the tax directly or use alternative financing. Either way, this needs to be considered in the context of your overall plan, because the longer you defer under the new rules, the more it eats into your home equity.

If you are currently enrolled in the BC Property Tax Deferment Program, you may want to review your specific situation to ensure the program continues to make sense under the new terms. For some clients, it will still be worthwhile; for others, there may better alternatives.

What Does This Mean to You?

• Your investment portfolio was designed with future stock market volatility in mind. The assets are invested in a well-diversified portfolio. The continued strength of Canadian and Emerging Market holdings has served as an effective buffer against the US market decline this quarter.
• For those generating an income, we maintain a couple years’ worth of income in GICs and high-yield savings accounts to fund your withdrawals. This strategy was specifically designed to avoid selling investments at a loss during periods like this. Your income is secure and your portfolio can recover without being forced to liquidate at the wrong time.
• For accounts that are accumulating and not taking an income, we are maintaining a neutral allocation. We are monitoring this closely.

As always, I thank you for the trust you place in our firm. If you have any questions about your situation, please do not hesitate to contact us. We are always happy to talk with you by phone, by video, or in person. You can book a meeting by giving us a call, sending us an email, or by using our online booking tool.

Sincerely,

Anne Hammond
BA CIM CFP CEA
Financial Advisor & Portfolio Manager
T 604 732 6551

Planning Team

Carly O’Connell, BA
Financial Planning Associate
Direct: 604-737-6752
[email protected]     

Lorraine Watson
Executive Assistant
Direct: 604-737-6787
[email protected]    

Anne Hammond is a Financial Advisor with RGF Integrated Wealth Management. The views expressed are those of the author and not necessarily those of RGF Integrated Wealth Management, which makes no representations as to their completeness or accuracy.

© 2026 RGF Integrated Wealth Management. Ltd., RGF Wealth Management. Ltd., Member – Canadian Investor Protection Fund