August 15, 2026

Now that we have had a few weeks to reflect on the first half of the year, I wanted to take a moment to share some thoughts on the markets, but more importantly, on the principles that continue to guide our investment decisions.

Markets are constantly changing. The principles that guide our decisions change far less often.

The first six months of 2026 brought their share of surprises. Despite an uncertain economic environment at times, and markets once again reminding us how unpredictable they can be, our portfolios continued to make great progress.

These results did not come from making the right prediction, betting on a particular sector, or making a tactical move at just the right time.

They came from an approach we have followed consistently for many years: investing in high quality businesses around the world, diversifying intelligently, keeping costs among the lowest in the industry, rebalancing portfolios with discipline and, most importantly, staying invested when emotions lead many investors to do the opposite.

This approach may be less exciting than what we often see in the financial media. Still, we believe it remains one of the most reliable ways to build wealth over the long term.

When I talk about progress, I am not referring only to the value of your portfolio.

To me, investment returns are only part of the equation.

Real progress is also measured by the strength of your financial plan, the quality of the businesses you own, their ability to create value year after year and, ultimately, whether you are getting closer to your goals: a comfortable retirement, financial security for your family or the successful transfer of your wealth to the next generation.

That is what gives me more confidence than ever in our approach.

What Never Changes

At Montclair Private Wealth, we believe the best results rarely come from the best predictions.

They come from a good plan… and the discipline to stick with it.

Our role begins with understanding your situation, your goals and your priorities. From there, we develop a financial strategy that fits your circumstances and build a portfolio designed to support that plan.

Our process remains the same:

• Clearly define your goals.
• Develop a sound plan to achieve them.
• Build a broadly diversified portfolio based on academic research and historical evidence.
• Maintain the discipline required to give time and the markets the opportunity to do their work.

As long as your goals remain the same, there is rarely a good reason to change your plan.

And when the plan still makes sense, the portfolio generally should as well.

Contrary to what many people believe, our job is not to guess where markets will be six months from now.

Our job is to make investment decisions based on the best available evidence, academic research and the expertise of some of the most respected investment partners in the industry.

A disciplined approach does not mean that we stop learning or questioning our decisions. Quite the opposite.

Every year, we spend a great deal of time studying new research, meeting with our investment partners, speaking with specialists and challenging our own thinking. When there is evidence of a better way to serve our clients, we adopt it.

What we try to avoid are changes driven by emotion, the latest headlines or the belief that anyone can consistently predict what markets will do next.

We obviously follow the markets closely, along with the businesses we invest in, changes in taxation and developments in the global economy. We continually test our decisions and our thinking to make sure they remain supported by the best information available.

At the same time, we believe the most important decisions are rarely the ones made in a hurry.

That discipline is exactly what allows us to stay on course when markets become more volatile.

Markets in 2026

If markets have reminded us of one thing so far this year, it is that they continue to surprise.

Geopolitical tensions intensified.

The debate around interest rates and inflation continued.

Artificial intelligence continues to transform many sectors of the economy.

Major stock market indexes remain heavily concentrated in a small number of technology companies, while many other sectors have been moving forward much more quietly.

At times, listening to the headlines made it feel as though this time really was different.

Yet while the news changed almost every day, one thing remained remarkably consistent: the high quality businesses we own continued to innovate, invest, generate profits and create value for their shareholders.

That is the difference between investing and speculating.

We do not simply own stock symbols.

We own pieces of thousands of businesses around the world.

And those businesses continue to operate and grow every day, regardless of what the headlines say.

Discipline Before Emotion

Markets rarely reward those who react the fastest.

They tend to reward those who remain disciplined for long enough.

Our approach often leads us to do exactly the opposite of what our emotions naturally suggest.

When certain sectors become extremely popular and their valuations rise quickly, we gradually rebalance our portfolios.

In practical terms, this means slightly reducing our exposure to areas that have become more expensive and increasing our exposure to areas that may be temporarily less popular, but often offer more attractive valuations.

This process is rarely exciting.

At times, it can even feel uncomfortable.

But it is one of the fundamental principles behind our approach.

We do not rebalance because we believe we know what markets will do tomorrow.

We do it because history, research and experience show that consistently applying a disciplined approach offers better odds of long term success than making decisions based on emotion.

What Really Matters

Markets will continue to be unpredictable.

There will be other periods of optimism.

There will also be other corrections. Some will be modest. Others may be more significant.

We do not know when they will happen or what will cause them.

There is, however, something we can be much more confident about.

For more than a century, stock markets have rewarded investors who remained patient, diversified and fully invested.

Our responsibility is not to predict the future.

It is to build a strategy strong enough to carry us through whatever the future brings.

Headlines will continue to change.

Forecasts will continue to contradict one another.

Markets will move between optimism and concern.

Our philosophy will not.

We will continue to make decisions based on evidence rather than emotion.

On research rather than predictions.

And, most importantly, on your plan rather than the headlines.

In Closing

I would like to take a moment to thank you.

The past several months marked an important milestone as we completed the transition of our clients to Montclair Private Wealth.

It took a great deal of work to get here, but it was well worth it, and I am extremely proud of the result.

What stood out to me most throughout this transition, however, was the trust and loyalty you showed me. Many of you have trusted me for many years, and I never take that privilege for granted.

I am reminded every day of the responsibility that comes with helping manage your wealth.

That trust motivates me to keep learning, to challenge our thinking, to work with world class partners and to continue looking for the best solutions to help you achieve your goals.

I hope you found these reflections useful.

If they raise any questions about your situation or your goals, please do not hesitate to reach out. The best financial decisions often start with a good conversation.

I wish you a wonderful rest of the summer.

Mathieu Leduc, Pl. Fin.
President
Montclair Gestion Privée