History is calling - MARKETS ARE REMARKABLE

AN END OF MARCH 2026 OUTLOOK

History is our teacher as we look outward to a complex marketplace in uncertain times

As we closeout March, many investors are understandably watching markets with caution. Global headlines continue to highlight geopolitical tensions, shifting interest‑rate expectations, and questions about the pace of economic growth. While uncertainty can feel uncomfortable, it’s also a familiar part of the investing landscape.

I want to share both a snapshot of current themes and a reminder from history: markets have a remarkable ability to recover and advance even through periods of war, conflict, and global stress.

Market Overview: Themes to Watch

  • Interest Rates: Central banks, including the Bank of Canada, continue to signal a data‑dependent approach. Inflation has cooled from its peak, but policymakers remain cautious.

  • Equity Markets: Volatility has picked up, but corporate earnings have been more resilient than many expected.

  • Commodities: Energy and metals, important sectors for Canada, remain sensitive to global supply disruptions and geopolitical developments.

  • Canadian Dollar: The CAD has been relatively stable, though global risk sentiment continues to influence its direction.

Periods like this often test investor patience, but they also create opportunities for disciplined, long‑term strategies.


History Reminds Us: Markets Recover Through Conflict

It’s easy to feel like today’s uncertainty is unprecedented, but history tells a different story. Over the past century, global markets have endured and recovered from some of the most challenging periods imaginable.

Conflict Period Measured Total Return Annualized Return
World War II 1941–1945 0.608 0.136
Korean War 1950–1953 0.935 0.246
Vietnam War 1963–1975 0.431 0.032
Gulf War Aug 1990–Dec 1991 0.288 0.197
Afghanistan War 2001–2021 2.17 0.059
Iraq War 2003–2011 0.517 0.054
Russia–Ukraine War Feb 2022–Dec 2024 0.413 0.129
Israel–Hamas Conflict Oct 2023–Dec 2024 0.382 0.295

Wartime Average (across 8 conflicts):+11.9% annualized, compared with +10.0% in peacetime.

Why do markets recover?

  • Economies adjust faster than headlines suggest

  • Innovation continues even in difficult times

  • Companies adapt to new realities

  • Long‑term growth trends overpower short‑term shocks

The pattern is clear: while conflict creates volatility, it has not derailed long‑term market growth.

What This Means for Your Portfolio

Periods of uncertainty are when long‑term planning matters most. A well‑diversified portfolio that is aligned with your goals, time horizon, and risk tolerance remains the most reliable way to navigate unpredictable markets.

Here’s what I’m focusing on; 

  • Ensuring portfolios remain aligned with long‑term objectives

  • Looking for opportunities created by short‑term volatility

  • Maintaining a disciplined approach rather than reacting to headlines

  • Reviewing cash flow needs and ensuring liquidity where appropriate

Staying invested through uncertainty has historically rewarded patient investors.

Looking Ahead

As we move into April, I’ll continue monitoring economic data, central‑bank commentary, and global developments. If you’d like to review your portfolio or discuss how current conditions relate to your long‑term plan, I’m always here to help.

Wishing you a steady and optimistic start to spring.

Best regards, 

Matthew Bishop 
Financial Advisor

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