“If we had no winter, the spring would not be so pleasant.”
– Anne Bradstreet

As we look ahead, the gradual rise in daily temperatures and the sun’s higher position in the sky signal the changing of seasons. With it comes the anticipation of summer and the opportunities it brings.

However, this time of year feels different. Ongoing trade tensions and tariffs between Canada and the United States have introduced uncertainty into financial markets, raising concerns about the future of investments. This time, it feels personal—because it is a product of policy decisions rather than natural market cycles. Yet, during periods of economic and geopolitical volatility, maintaining a steady and informed approach is essential to preserving and growing capital.

Investors should be prepared for heightened volatility and remain flexible as the situation evolves, making disciplined risk management essential. Sectors most exposed to U.S. tariffs – particularly manufacturing and export-driven industries – face mounting pressures.

However, some businesses will adapt, whether by restructuring supply chains, expanding into alternative markets, or leveraging government incentives to sustain domestic production. Navigating this environment requires a measured, long-term perspective. While risks are in focus, market adjustments will create opportunities as businesses reposition.

The coming months…or perhaps even days… will be pivotal in determining whether tariffs persist, shift, or ease. Our focus remains on protecting capital while identifying areas of resilience, ensuring portfolios are well-positioned for an evolving trade landscape.

Uncertainty is not new.

The chart below illustrates the S&P 500’s annual returns since 1980 where the average annual return was 10.6%. Notably, 34 of the past 45 years have ended in positive territory, despite an average annual intra-year decline of 14.1%, as indicated by the red dots. This means that, without fail, each year had temporary, and sometimes meaningful, setbacks along the way. It serves as a powerful reminder that market volatility is a natural part of the investment journey and why we tailor your portfolio to your specific needs.

Berkshire Hathaway’s Letter to Shareholders

Warren Buffett has released his annual letter to shareholders, a highly anticipated read each year. His letter offers timeless insights into the principles behind his investing success, delivered with characteristic simplicity and wisdom. While implementing these strategies is often easier said than done, his message consistently serves as a valuable reminder of what truly matters in investing—helping to cut through the distractions of the moment. A timely read given the circumstances!

Here are some key highlights from this year’s letter: 3 Timeless Investment Lessons from Warren Buffett’s Annual Letter

In other planning news…

I recently had a meeting with a client where we discussed the lack of financial literacy in our education system. This client is highly disciplined with their finances and believes in instilling those values in their children to support their long-term well-being.

Following our conversation, they shared a short two-minute video from The Wealthy Barber, which I wanted to pass along to you. While it is geared toward a younger audience, it offers a valuable reminder that every spending decision comes with tradeoffs and opportunity costs. Understanding this simple concept can make a significant difference in developing a healthy relationship with money.

Please feel free to share this video with your family or anyone else who might find it beneficial. The most important money lesson for kids – David Chilton – The Wealthy Barber

We encourage you to reach out with any questions or concerns you have. We look forward to hearing from you.

• ROB