Welcome to Our Monthly Newsletter - Pharus Perspectives!

Markets have entered another period of heightened volatility, as geopolitical tensions, persistent inflation pressures, and rising energy prices continue to shape investor sentiment. While short-term uncertainty can be unsettling, these environments often create important opportunities for disciplined, long-term investors.

In this month’s issue, we explore the key themes driving markets and the strategies we believe matter most right now.

Inside This Month’s Edition

• Market Update: How escalating tensions involving Iran are influencing global markets, oil prices, and inflation expectations
• Tax & Fraud Awareness: The rise in tax-related scams and practical ways to help protect your assets and personal information
• Portfolio Strategy: Investment strategies designed to navigate volatility and position portfolios for a potential stag-flationary backdrop
• Business Owners: Key planning opportunities for accessing retained earnings under the latest federal budget measures

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.

 

Monthly World Markets Report

Shifting Currents in 2026: Markets Navigating a More Complex Landscape

Markets have entered 2026 facing a more uncertain and rapidly evolving environment, shaped by geopolitical tensions, structural technological change, and shifting credit conditions. While headline index performance may appear relatively stable, there have been meaningful shifts beneath the surface that are influencing volatility, sector leadership, and investor sentiment.

In this month’s World Markets Report, we highlight the major themes currently shaping portfolios and the broader investment outlook—from rising energy prices driven by conflict in the Middle East, to the ongoing evolution of artificial intelligence, and growing liquidity concerns within private credit markets.

 

Market Summary

The escalation of conflict in Iran has emerged as a key near-term driver of global markets. The disruption to energy supply routes has pushed oil prices sharply higher, reigniting inflation concerns and causing markets to reassess the path of future interest rate cuts. Elevated energy costs continue to create pressure on both consumers and businesses, while also weighing on global growth expectations.

 

At the same time, the market’s focus on artificial intelligence has evolved. Investors are now looking beyond enthusiasm and placing greater scrutiny on whether significant capital spending by large technology companies will translate into sustainable earnings growth. This shift has also placed pressure on software companies as AI-driven automation changes long-term business models and valuation assumptions.

 

Private credit remains another important area of focus. As market volatility and higher rates continue, liquidity challenges within the space have become more visible, particularly as some investors seek redemptions from less liquid alternative strategies.

 

Key Takeaways for Investors:

• Geopolitical risk remains elevated, with energy markets and inflation expectations closely tied to developments in the Middle East
• Oil price volatility may influence interest rate decisions, which could affect both equity and fixed income markets
• AI remains a long-term structural investment theme, though market leadership within the sector is evolving
• Private credit requires careful due diligence, particularly around liquidity, transparency, and underlying borrower quality
• Diversification and discipline remain critical in periods where market leadership can shift quickly

 

Looking Ahead

Periods like these reinforce the importance of maintaining a long-term perspective and ensuring portfolios remain aligned with individual objectives and risk tolerance. While uncertainty can create short-term volatility, it can also present selective opportunities across asset classes.

Monthly Performance Update

Market Performance- March 31st , 2026
Index	1 Month	3 Months	YTD	1-Year	3-Year	5-Year
S&P TSX	-4.3%	3.9%	3.9%	34.8%	21.2%	15.2%
S&P 500	-5.0%	-4.3%	-4.3%	17.8%	18.3%	12.1%
NASDAQ	-4.8%	-7.1%	-7.1%	24.8%	20.9%	10.3%
MSCI EAFE	-10.2%	-1.1%	-1.1%	21.9%	14.2%	8.5%
MSCI Emerg.	-13.0%	-0.1%	-0.1%	30.3%	15.4%	4.2%
MSCI World	-6.6%	-3.9%	-3.9%	17.4%	15.1%	8.7%
FTSE Canada Bond	-2.0%	0.2%	0.2%	0.8%	3.22%	0.61%

Source: Click Here for Monthly World Market Report.

Observed Trends & Findings from our Model Research

Shifting Currents: Positioning for Uncertainty and Global Risk

Recent market activity has reinforced the importance of disciplined portfolio construction in an environment shaped by moderating growth expectations, evolving inflation trends, and continued geopolitical uncertainty. While volatility has remained elevated across asset classes, the broader backdrop continues to support a thoughtful, long-term investment approach grounded in diversification and risk management.

 

In periods such as these, portfolio strategy often becomes less about reacting to short-term market movements and more about ensuring allocations remain aligned with long-term objectives, cash flow needs, and overall risk tolerance.

 

Strategic Considerations

Investors may wish to consider whether modest portfolio adjustments are warranted to enhance resilience and preserve flexibility in the current environment. Examples of broader strategic shifts that may be appropriate include:

• Rebalancing toward target allocations
  • Following periods of strong equity market performance or heightened volatility, portfolios may benefit from rebalancing back toward strategic targets to maintain intended risk exposure.
• Increasing portfolio defensiveness
  • Some investors may consider a modest shift toward more defensive areas of the market, including higher-quality equities, dividend-oriented strategies, or sectors that have historically demonstrated greater earnings resilience.
• Enhancing fixed income exposure
  • With yields remaining attractive relative to recent years, selectively increasing exposure to high-quality fixed income may help improve portfolio stability while enhancing income potential.
• Broadening diversification through alternatives
  • Incorporating or modestly increasing exposure to diversifying assets such as infrastructure, real assets, or broader alternative strategies may help mitigate portfolio volatility and provide inflation sensitivity.
• Reviewing currency and geographic exposure
  • Given ongoing divergence in global growth and monetary policy expectations, it may be prudent to revisit regional allocations and overall currency positioning within internationally diversified portfolios.

Our focus remains on ensuring portfolios are positioned to participate in long-term growth opportunities while remaining resilient through evolving market conditions.

 

Pharus Feature

Tax Season Perspectives: How Affluent Families Think About RRSPs, TFSAs and Corporate Investing

 

Tax season is in full swing — and while most of the conversation centers on contribution deadlines, the more important planning question is often broader:

Which structure actually makes sense for this dollar, at this stage of life?

In our work with high-income families, incorporated professionals, and business owners, we see the same pattern consistently: families who focus only on annual contributions often build fewer options for themselves over time. Families who think more deliberately about which tax bucket, for what purpose, and at what stage of life tend to arrive at retirement with more flexibility, more control, and fewer surprises.

In our latest Pharus Resources article we explore how to think about RRSPs, TFSAs, and corporate investing together — during the working years, through retirement income design, and into intergenerational wealth transfer.

The goal is not to find the winning account. It is to build the right structure for the life the money is meant to support.

Source: Read the Full Article Here

Financial Planning Feature

Tax Planning Considerations for Ontario Business Owners

 

Ontario’s latest provincial budget introduced a meaningful reduction to the small-business corporate tax rate, offering welcome relief for incorporated business owners and professionals. While the lower tax rate creates additional opportunities for reinvestment and growth, the changes also introduce important planning considerations around retained earnings, dividend strategies, and long-term tax efficiency.

For business owners and incorporated professionals, this is a timely reminder that tax changes often create both opportunities and trade-offs that should be reviewed within the context of a broader financial plan.

 

Summary of Changes

Effective July 1, 2026, Ontario’s small-business corporate tax rate will decrease from 3.2% to 2.2%, reducing the combined federal and provincial tax rate for qualifying businesses.

 

While this lower corporate tax burden may improve cash flow and provide more capital for reinvestment, the budget also includes a reduction to the small-business dividend tax credit, effective January 1, 2027. As a result, the personal tax rate on non-eligible dividends is expected to increase.

 

In practical terms, while corporations may retain more after-tax income, business owners could face a higher personal tax cost when withdrawing retained earnings through dividends in future years. This may impact decisions around compensation, dividend timing, corporate investment structures, and long-term succession or estate planning.

 

Key Takeaways for Business Owners

• Lower corporate tax rates may improve after-tax cash flow and create additional funds for business reinvestment and growth.
• Higher personal tax on dividend withdrawals beginning in 2027 may reduce the net benefit of the corporate tax savings.
• Dividend timing strategies may be worth reviewing, including whether distributions in 2026 could be more tax efficient.
• Retained earnings and corporate investment strategies should be reassessed in light of changing tax integration rules.
• Estate and succession planning considerations remain important, particularly with recent federal legislative updates affecting graduated rate estates.
• Equipment purchases and capital investments may also benefit from enhanced accelerated write-off provisions.

 

Source: Click Here for Full Details

 

CIBC Smart Advice Feature

Staying Vigilant During Tax Season: Protecting Yourself from Tax Scams

As tax season unfolds, it is important to remain alert to the growing sophistication of fraud attempts targeting Canadians. Scammers are increasingly using urgent messages, threats, and promises of tax refunds to pressure individuals into sharing sensitive financial information or sending money. In today’s environment, protecting personal and banking information is an important part of overall financial wellbeing.

Why This Matters Now

A recent CIBC Smart Advice article highlights the rise in tax-related scams, particularly during filing season when fraudsters often impersonate the Canada Revenue Agency or other government bodies. These scams may arrive through phone calls, emails, text messages, or even traditional mail, often claiming unpaid taxes, threatening legal consequences, or promising refunds.

 

Common warning signs include unexpected contact, high-pressure language, demands for payment through unusual methods such as gift cards or cryptocurrency, and links to fraudulent websites designed to capture personal information.

 

The article emphasizes the importance of verifying the source of any communication, avoiding suspicious links, monitoring financial accounts regularly, and enabling account alerts for unusual activity.

Key Takeaways

• Be cautious of unsolicited messages claiming to be from the Canada Revenue Agency or financial institutions
• Never share sensitive information such as your SIN, banking details, or credit card information unless you initiated contact through verified channels
• Watch for urgency and threats, which are common tactics used by fraudsters
• Avoid clicking unknown links or downloading attachments from unexpected emails or text messages
• Review bank and credit card statements regularly for unauthorized activity
• Use account alerts and security tools to help identify suspicious transactions early
• Remember the simple prevention framework: Stop, Check, Talk

 

We encourage readers to access the full CIBC Smart Advice article for additional guidance on recognizing tax scams and protecting your financial information.

 

Source: Read the full article.

 

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.

Navigating Inflation Risks Through Commodities

Recent geopolitical tensions in the Middle East have once again brought global energy markets into sharp focus. With the conflict threatening critical supply routes through the Strait of Hormuz, oil prices have surged above $100 per barrel, reigniting concerns around inflation and market volatility. Given that roughly one-fifth of global oil trade moves through this corridor, even short-term disruptions can have meaningful ripple effects across global economies.

For investors, this environment raises an important portfolio question: is now the right time to revisit commodity exposure?

Commodities have historically played an important role during periods of rising inflation, geopolitical instability, and supply-side shocks. When energy prices rise, the impact often extends well beyond gasoline and heating costs — affecting transportation, manufacturing, food production, and broader consumer prices. The IMF recently noted that every sustained 10% rise in oil prices can add approximately 0.4% to global inflation over time.

Why Commodities Matter in a Portfolio

 

Adding commodities can help strengthen portfolio resilience in several ways:

• Inflation hedge: Hard assets such as oil, gold, and industrial metals often rise when inflation expectations increase.
• Diversification: Commodities tend to have a lower correlation to traditional stocks and bonds, which can help smooth portfolio volatility.
• Geopolitical protection: During times of global uncertainty, certain commodities can benefit from supply disruptions and risk-off sentiment.
• Real asset exposure: Commodities provide access to tangible assets that may preserve purchasing power.

 

This can be particularly valuable in periods where both equities and fixed income face pressure from rising inflation expectations and interest rate uncertainty.

 

Commodity Investments to Consider

 

There are several ways investors may gain exposure to commodities depending on their objectives and risk tolerance:

 

• Energy (Oil & Natural Gas)

• Energy remains the most direct way to position for an oil shock. Exposure can be gained through commodity-focused ETFs, energy infrastructure funds, or large integrated energy producers. These investments may benefit from sustained elevated crude prices.

• Gold & Precious Metals

• Gold has traditionally served as a defensive asset during geopolitical stress and inflationary periods. It can be accessed through physical bullion ETFs, gold mining equities, or diversified precious metals funds.

• Industrial Metals

• Copper, aluminum, and nickel can offer exposure to both inflation protection and long-term structural themes such as infrastructure spending and electrification.

• Broad Commodity Funds
  • For investors seeking diversification within the asset class, broad commodity ETFs or mutual funds can provide exposure across energy, metals, and agriculture in a single vehicle.

 

The Strategic Takeaway

 

While commodities can offer important benefits, they are best viewed as a strategic diversifier rather than a core portfolio holding. Prices can be highly volatile and driven by short-term events, policy decisions, and global supply conditions.

 

In the current environment, where geopolitical risk and inflation concerns have resurfaced, a measured allocation to commodities may help improve diversification and provide a potential hedge against further price shocks.

 

 

Pharus Corner

Welcome to 30, Sagar!

 

This month, we’re celebrating a big milestone as Sagar Savla, Assistant Investment Advisor at Pharus Wealth, officially enters a brand-new decade — welcome to 30!

 

 

Much like a well-built financial plan, the 30s are all about confidence, growth, and setting the stage for long-term success — and Sagar is already well ahead of schedule. His positive attitude, dedication to our clients, and ability to keep everything running smoothly make him an invaluable part of our team and a pleasure to work alongside each day.

 

Please join us in wishing Sagar a fantastic 30th birthday, a memorable year ahead, and continued success both personally and professionally. Here’s to the next decade of growth, opportunity, and plenty of reasons to celebrate.

 

 

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