Welcome to Our Monthly Newsletter - Pharus Perspectives!

February arrives with a very different tone than the start of the year. After a sharp sell‑off in precious metals, shifting expectations around interest rates, and a market still wrestling with the implications of rapid AI adoption, investors are asking tougher questions about what comes next. The landscape is evolving quickly—especially as AI begins to reshape the software industry, capital allocation, and long‑term growth assumptions.

 

This month, we explore how these forces intersect and what they mean for portfolio positioning in a market that feels both full of promise and fraught with uncertainty. From sector rotations to new frameworks for evaluating AI‑driven companies, our goal is to help you navigate the noise with clarity and conviction.

 

Inside This Month’s Edition

• Pharus Feature: Reframing RRSP Season
• Market Trends: Risks on the Road Ahead
• Special Feature: 2026 Tax Toolkit
• Strategy Spotlight: How to unlock tax savings with RRSP’s
• Investment Strategy: Four key categories we’re reviewing to help you stay aligned with a changing investment landscape

As always, we break down the risks, highlight the opportunities, and offer a grounded perspective on how to move forward with confidence. Let’s dive in and chart a thoughtful path through an increasingly complex market environment—together.

 

Pharus Feature

RRSP Season, Reframed: What Families Often Miss When Thinking About Retirement Savings

 

Every February, RRSP season sounds the same:

“Maximize your contribution.”
“Don’t miss the deadline.”

But for professionals, business owners, executives, and families nearing retirement, RRSP decisions are rarely that simple.

The real question isn’t just whether to contribute.

It’s how that decision integrates with:

• Corporate retained earnings vs. personal income extraction (salary/dividends)
• Pension-adjusted RRSP room and potential retirement benefits
• RRIF minimum withdrawals and long-term taxable income management
• OAS claw back risk and benefit optimization over time
• RRSP is only one of the tools and need to coordinate with others such as TFSAs, Non-Registered Assets, Corporation, Properties, etc. for optimal retirement income and estate planning.

Shamin Khan recently wrote a new article exploring how RRSPs fit into complex retirement income planning - particularly for incorporated professionals, business owners, executives and families approaching retirement.

If your financial picture involves multiple income sources, corporate structures, or retirement on the horizon, this perspective may be worth reviewing.

RRSP season is only a deadline.
Integrated planning is a discipline.

 

Source: Read the Full Article Here

 

Monthly World Markets Report

Risks on the Road Ahead

Global equity markets enter 2026 with strong momentum following several years of exceptional performance, particularly in North America. Robust economic growth, easing inflation, healthy corporate earnings, and heavy investment in AI and digital infrastructure have supported this strength. Yet, elevated valuations and a shifting geopolitical and trade landscape mean investors must balance optimism with caution. This report highlights the major risks that could influence markets in the year ahead.

 

Strong Market Backdrop, but Rising Sensitivity

• The S&P/TSX Composite and S&P 500 have delivered near-record three‑year returns.
• Economic resilience, fiscal support, and corporate strength continue to underpin the bull market.
• However, high valuations—especially in the U.S.—increase vulnerability to earnings misses or policy surprises.
• After years of strong gains, markets may react more sharply to negative sentiment shifts.

 

Geopolitical Uncertainty Remains a Wildcard

• A more fragmented global order means even small shocks can trigger outsized market reactions.
• Recent tensions involving Greenland, transatlantic relations, Venezuela, and the Middle East highlight the fragility of global confidence.
• While markets often recover quickly from geopolitical events, persistent uncertainty can weigh on investment, growth expectations, and valuations.

 

Canada’s Key Risk: U.S. Trade Relations

• The 2026 USMCA joint review introduces uncertainty around North American trade.
• With ~70% of Canadian exports going to the U.S., Canada is highly exposed to any shift in tariffs, rules of origin, or dispute mechanisms.
• Even without formal changes, uncertainty can delay hiring, capital spending, and long‑term investment decisions.
• Canada would likely bear the greatest near‑term economic impact if tensions escalate.

 

U.S. Market Risk: AI Concentration

• The AI investment cycle remains a major driver of U.S. equity strength.
• Mega‑cap tech firms are funding record capital spending from strong cash flows, not leverage—unlike past speculative periods.
• However, market leadership is increasingly concentrated in a handful of companies.
• If earnings growth slows or regulatory pressure rises, a reset in expectations for a few large firms could drag down broader market returns.

 

The Bottom Line: Expect Volatility, Stay Disciplined

• 2026 will be shaped by trade policy uncertainty, geopolitical tension, valuation sensitivity, and sector concentration.
• Markets may swing sharply on headlines, even when fundamentals remain stable.
• The “tariff tantrum” of 2025 is a reminder that markets often overreact before stabilizing.
• Long‑term investors benefit most from staying diversified, remaining invested, and viewing volatility as an opportunity—not a threat.

 

Monthly Performance Update

Market Performance- January 31st , 2026
Index	1 Month	3 Months	YTD	1-Year	3-Year	5-Year
S&P TSX	0.8%	6.1%	0.8%	28.3%	18.9%	16.4%
S&P 500	1.5%	1.8%	1.5%	16.3%	21.1%	15.0%
NASDAQ	0.9%	-1.1%	0.9%	19.5%	26.5%	12.4%
MSCI EAFE	5.2%	9.1%	5.2%	31.8%	16.8%	10.8%
MSCI Emerg.	8.9%	9.5%	8.9%	43.7%	17.3%	5.8%
MSCI World	2.2%	3.1%	2.2%	18.0%	17.6%	11.2%
FTSE Canada Bond	0.6%	-0.4%	0.6%	2.0%	3.42%	-0.18%

Source: Click Here for Monthly World Market Report.

 

Observed Trends & Findings from our Model Research

Market Themes Shaping February 2026

AI Trade: Rotation Within the Trend

The AI theme continued to influence markets this month, though leadership within the space shifted. Investors appeared to move from broad enthusiasm toward a more selective focus on companies demonstrating clearer commercial traction. The theme remains a major driver of sentiment, but the market is beginning to differentiate more sharply between early‑stage excitement and proven execution.

Precious Metals: A Rapid Pullback

After a strong start to the year, precious metals experienced a sharp reversal. Gold and silver both saw meaningful declines as rate expectations adjusted and the U.S. dollar strengthened. The speed of the move highlighted how quickly positioning can unwind in areas that had recently attracted significant inflows.

Magnificent Seven: A More Varied Start to 2026

The Magnificent Seven stocks delivered a mixed performance to begin the year. Some names continued to benefit from AI‑related momentum, while others saw early‑year consolidation. The group remains influential, but dispersion within it has increased, underscoring a more selective environment across large‑cap growth.

 

Portfolio Positioning Overview: Possible Approaches in Today’s Environment

Below is a broad, thematic outline of how one might think about structuring a portfolio in the current landscape. These are not recommendations, but rather examples of potential strategic frameworks.

 

Equity Structure: Core + Explore

A possible approach is to organize equity exposure into two complementary components:

• Core: A diversified foundation that anchors the allocation.
• Explore: A more targeted segment that can incorporate specific themes or company‑level opportunities. Within the Explore sleeve, some investors may use a balanced mix of quality‑focused and growth‑focused names to participate in long‑term innovation while maintaining attention to fundamentals.

 

Fixed Income: Broadening Global Diversification

Another potential strategy is to potentially incorporate a wider range of global fixed‑income exposures. This could include:

• Select international and emerging‑market bonds
• Floating‑rate instruments that may help navigate shifting rate environments The emphasis remains on maintaining reasonable credit quality while modestly expanding sources of yield and diversification.

 

Overall Allocation: Gradual Adjustments

Some investors may choose to make incremental shifts rather than large directional moves. For example, adjusting an equity underweight slightly—rather than fully closing it—can reflect ongoing monitoring of market conditions without committing to a strong stance. The broader philosophy remains one of flexibility and nimbleness, allowing positioning to evolve as new information emerges.

 

Financial Planning Feature

RRSP Season Insights: Five Smart Ways to Unlock Tax Savings in 2026

 

As RRSP season ramps up, many Canadians are looking for ways to stretch their contributions further and make the most of the tax advantages available. This edition breaks down five practical strategies inspired by Jamie Golombek’s recent guidance — all designed to help you optimize your RRSP, reduce your tax bill, and strengthen your long‑term financial plan.

 

The Core concepts

 

Contributions In-Kind

• Transferring investments in‑kind can help you meet the RRSP deadline without cash on hand.
• Key takeaways:
  • You receive contribution credit based on fair market value.
  • Capital gains become taxable on transfer.
  • Capital losses cannot be claimed—selling first and contributing cash is often better.
  • Waiting 30 days before repurchasing avoids the superficial loss rule.

 

Spousal RRSPs

• A spousal RRSP remains a powerful income‑splitting tool for retirement
• Key takeaways:
  • Contributions are deducted by one spouse but taxed to the lower‑income spouse on withdrawal.
  • Withdrawals within three years of contribution may be attributed back to the contributor.
  • Contribution room is always based on the contributor’s own RRSP limit.

 

Home Buyers’ Plan

• The Home Buyers’ Plan helps first‑time buyers’ access RRSP funds for a down payment
• Key takeaways:
  • Individuals can withdraw up to $60,000; couples up to $120,000.
  • Can be combined with FHSA and TFSA savings.
  • Repayments typically begin in the second year and span 15 years.
  • Eligibility depends on not having owned a home in the past five years (with some exceptions).

 

Lifelong Learning plan

• The Lifelong Learning Plan supports education financing for you or a partner.
• Key takeaways:
  • Withdraw up to $20,000 for full‑time studies.
  • Repayments begin within five years and must be completed over ten.
  • Early repayment restores tax‑sheltered growth sooner, which can significantly impact long‑term savings.

 

Convert Some of Your RRSP to a RRIF at Age 65

• Converting part of an RRSP to a RRIF can unlock valuable tax credits
• Key takeaways:
  • Up to $14,000 can be converted between ages 65 and 71.
  • Withdrawing $2,000 annually allows you to claim the federal pension income credit.
  • Provincial credits may also apply.

 

Source: Click Here for Full Details

 

CIBC Smart Advice Feature

Should You Maximize Your RRSP or Prioritize Other Financial Goals?

As the RRSP deadline approaches, many Canadians find themselves weighing competing financial priorities. Should extra savings go toward retirement, paying down the mortgage, or investing in a child’s education? This month’s featured CIBC Smart Advice article explores how thoughtful planning, clear goal‑setting, and the right tools can help you balance multiple objectives with confidence. It also highlights how working with a professional financial advisor can bring clarity to complex decisions—especially during RRSP season.

 

To dive deeper into strategies for prioritizing your savings, maximizing government incentives, and building a plan that supports both your short‑ and long‑term goals, we encourage you to read the full article. Here are a few key main takeaways:

 

Key Takeaways

· Start with a holistic view of all your financial goals, timelines, and cash flow.

· Use planning tools to model different scenarios and understand the impact of each choice.

· Prioritize government‑matched programs like RESPs, RDSPs, and FHSAs to maximize returns.

· Match the account to the goal—RRSP for long‑term retirement, TFSA for short‑term flexibility.

· You don’t need to choose one goal over another; balanced strategies often work best.

 

Source: Read the full article.

 

Tax Toolkit 2026

It’s here at last! The brand‑new CIBC 2026 Tax Toolkit, expertly curated by Jamie Golombek, has officially arrived. This year’s edition is packed to the brim with more than 25 pages of must‑know tax essentials—from updated provincial marginal tax rates and RRIF minimums to probate fees and corporate integration charts. It’s your one‑stop resource for navigating the year ahead with clarity and confidence.

 

Access it below and dive in.

 

Source: Click Here for Full Details

 

Financial Solution Insights

In this section, we educate the reader on different financial solutions. We discuss and elaborate each idea over a couple monthly editions. This section is not to be taken as specific advice.

Back to Basics: Understanding Value, Growth, and Blend Investing in 2026

A new year always brings a fresh wave of optimism—and uncertainty. Markets evolve, economic cycles shift, and the strategies that worked in 2025 may not be the ones that carry investors through 2026. That’s why this month; we’re taking a step back from the noise and returning to the foundations of style investing.

 

Style investing is one of the simplest ways to understand how different stocks behave, what drives their performance, and how they fit into a diversified portfolio. The three core styles—Value, Growth, and Blend—each reflect a different philosophy about what makes a company attractive.

 

Below, we break down what each style means, how companies are categorized, and why these distinctions matter as we head into a new market cycle.

 

Value Investing: Buying What’s Underpriced

Value investing is rooted in a straightforward idea: buy companies that appear to be trading for less than they’re worth.

 

Typical Characteristics

• Lower price‑to‑earnings (P/E) ratios
• Lower price‑to‑book (P/B) ratios
• Higher dividend yields
• Slower but more stable earnings growth
• Often found in mature industries (financials, utilities, industrials)

 

How a Stock or Sector Is Classified as Value

Analysts and index providers look at valuation metrics. If a company’s stock price is low relative to its fundamentals—earnings, book value, cash flow—it’s considered “value.” Sectors like banks, energy, and consumer staples often lean value because their growth is steady rather than explosive.

 

Why It Matters in 2026

Value stocks often outperform when:

• interest rates are high or stabilizing
• the market is cautious
• investors prioritize cash flow and dividends

If 2026 brings slower economic growth or persistent inflation, value may regain attention.

 

Growth Investing: Paying for Potential

Growth investing focuses on companies expected to expand faster than the overall market—even if their current valuations look expensive.

 

Typical Characteristics

• Higher P/E and P/B ratios
• Rapid revenue and earnings growth
• Lower or no dividends (profits reinvested into expansion)
• Often found in innovative or fast‑moving sectors (technology, biotech, consumer discretionary)

 

How a Stock or Sector Is Classified as Growth

Growth stocks score high on metrics like:

• earnings growth rates
• revenue acceleration
• return on equity (ROE)
• analyst expectations for future expansion

Sectors such as technology, healthcare innovation, and e‑commerce are classic growth territory.

 

Why It Matters in 2026

Growth stocks tend to shine when:

• interest rates fall
• investors are optimistic
• innovation cycles accelerate

If 2026 brings rate cuts or renewed enthusiasm for AI, automation, and digital transformation, growth could reassert itself.

 

Blend Investing; The Middle Ground

Blend (or “core”) investing combines elements of both value and growth. Many broad‑market funds fall into this category.

 

Typical Characteristics

• Balanced valuation metrics
• Moderate growth expectations
• Diversified sector exposure
• Often includes large, stable companies with some growth potential

 

How a Stock or Sector Is Classified as Blend

Blend stocks don’t lean strongly toward either extreme. They may have:

• reasonable valuations
• steady but not explosive growth
• diversified revenue streams

Think of companies like diversified industrials, large consumer brands, or mega‑cap tech firms that have matured.

 

Why It Matters in 2026

Blend strategies can potentially help with volatility. When neither value nor growth is clearly dominant, blend funds provide a balanced approach.

 

Why Style Matters More Than Ever This Year

As we enter 2026, investors face:

• shifting interest‑rate expectations
• uneven global growth
• evolving technology cycles
• geopolitical uncertainty

 

In this environment, understanding the style of your investments isn’t just academic—it’s practical. It helps explain performance, manage risk, and build a portfolio aligned with your goals.

 

Whether readers lean toward undervalued opportunities, high‑growth innovators, or a balanced mix, going back to the basics of style investing provides a clearer lens for navigating the year ahead.

New Year Investment Riddle- Answer Revealed

Last month, we asked you this riddle:

“I grow when fear rises, I shrink when confidence returns. I’m bought to protect, but held too long, I can burn. I’m not a stock, yet I trade every day. What am I?”

 

The answer: a hedge—an investment position designed to reduce risk, which often gains value when markets are fearful but can hurt returns if held longer than needed.

 

Pharus Corner

Exciting news from the Pharus Wealth Advisory Group!

 

We’re thrilled to share that our team is growing as we continue to elevate the Pharus Wealth experience our clients and partners rely on. Today, we’re proud to welcome Astoria Zhong to our expanding wealth management team.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Astoria brings an impressive academic and professional foundation to Pharus. She holds a Double Master’s Degree, has completed CFA® Program Level I, and is actively pursuing the CFA designation—an achievement that reflects her drive for excellence and her commitment to understanding the complexities of modern wealth management. Her passion for supporting clients aligns seamlessly with our personalized, high‑touch advisory approach.

 

Beyond her professional accomplishments, Astoria is a vibrant and curious individual. She enjoys photography, reading, Pilates, fashion, interior design, exploring new restaurants with friends, traveling, and learning new languages. Her creativity and global perspective add even more depth to our already dynamic team.

 

As we continue to grow, Astoria’s strengths and dedication further enhance our ability to deliver the exceptional service, thoughtful guidance, and disciplined investment management that define the Pharus Wealth Advisory Group.

 

Please join us in welcoming Astoria to the Pharus Wealth family!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To stay up to date on market events, news, and reports, follow Pharus Wealth Advisory Group on our social media Pages. For Financial Literacy and Planning, visit Pharus Resources, where we upload timely articles on Financial Planning and Financial Literacy Resources.

 

Click here to visit Pharus Resources.

Pharus Wealth Advisory Group

The Beacon to your Financial Journey

1623 Avenue Road, Toronto ON M5M 3X8

Phone: 416 861-2460

Email: mailbox.pharuswealth@cibc.com

Website: www.pharuswealth.ca