Canadian Money Managers Urge Calm Amid Market Turbulence

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  Stocks and Investing on Tue, Mar 03rd, 2026 by The Globe and Mail
      Locale: CANADA

Toronto, ON - March 3rd, 2026 - As global markets continue to experience significant turbulence, Canadian money managers are urging investors to maintain a level head and resist the urge to make impulsive decisions driven by fear. The current climate, marked by persistent inflation, rising interest rates, escalating geopolitical tensions (particularly ongoing conflicts in Eastern Europe and the South China Sea), and a decelerating global economy, has understandably rattled investor confidence. However, leading portfolio managers are advocating for a steadfast commitment to long-term strategies and disciplined investment processes.

"Fear is not a strategy," reiterates Peter Armitage, Chief Investment Officer at Mawer Investment, a sentiment echoed across the Canadian financial landscape. The recent market correction has been widespread, impacting equities, bonds, and even alternative assets. While some investors are reacting by offloading holdings, many experienced money managers are choosing to hold firm, and, crucially, are actively identifying potential opportunities within the downturn.

John-Paul Decosse, Senior Portfolio Manager at J.P. Morgan Asset Management, acknowledges the discomfort associated with portfolio declines. "It's tough to see your portfolio decline, no one enjoys that," he says, "But it's important to remember that markets are cyclical. We've observed this pattern repeatedly throughout history. This is just another bump in the road, and reacting emotionally can often exacerbate losses."

The Endurance of Long-Term Investing

The cornerstone of the advice offered by these Canadian investment experts is a long-term investment horizon. Davis Coles, Portfolio Manager at forVest Global, emphasizes this point. "We've been through downturns before, including the dot-com bubble, the 2008 financial crisis, and even the pandemic-induced crash of 2020," he explains. "And we know that markets always recover. The key is to stay disciplined, avoid panic selling, and not make rash decisions based on short-term market fluctuations." This perspective aligns with historical data demonstrating that attempting to time the market is consistently less effective than remaining invested through periods of volatility. The power of compounding returns is significantly diminished by frequent buying and selling.

Beyond simply staying invested, diversification is presented as a critical component of a resilient portfolio. Mr. Armitage elaborates, "A well-diversified portfolio is designed to weather these kinds of storms. It's about spreading your risk across different asset classes - equities, bonds, real estate, infrastructure - and geographies. This minimizes the impact of any single sector or country performing poorly." Diversification isn't limited to asset allocation; it also extends to the style of investments - growth, value, and dividend-paying stocks - offering a broader buffer against market headwinds.

Opportunities Amidst Uncertainty

Despite the prevailing uncertainty, astute managers are identifying potential investment opportunities. Mr. Decosse points to the energy sector as an area of particular interest. "We're seeing some compelling value in the energy sector," he states. "The global energy transition, while necessary for environmental sustainability, is going to require massive, sustained investment in both traditional and renewable energy sources. This creates long-term opportunities for energy companies - those adaptable enough to embrace the changing landscape. We're seeing increased investment in carbon capture technologies and renewable infrastructure specifically."

Mr. Coles highlights the importance of focusing on companies with robust financial health. "Companies that can pass on rising costs to their customers, demonstrating strong pricing power, are better positioned to navigate inflation," he explains. "These companies often have established brands, loyal customer bases, and efficient supply chains. Focusing on quality companies with solid fundamentals is a prudent strategy in an inflationary environment." Furthermore, sectors benefitting from demographic trends, such as healthcare and consumer staples, are also being considered for long-term growth.

Navigating Persistent Risks

While optimism persists, Canadian money managers are not dismissing the inherent risks. Inflation remains a significant concern, despite recent slight declines. Central banks, including the Bank of Canada and the US Federal Reserve, are expected to continue implementing restrictive monetary policies, potentially including further interest rate hikes, albeit at a slower pace. The possibility of a recession, while not guaranteed, remains a tangible threat. Analysts are currently predicting a 40% chance of a recession in North America before the end of 2026.

Mr. Armitage concludes with a pragmatic outlook. "The next few months could be bumpy. We anticipate continued volatility and potentially further market corrections. But we're confident that the market will eventually recover, as it always has. The key is to remain focused on long-term goals, maintain a diversified portfolio, and avoid letting short-term fear dictate investment decisions." The consensus among Canadian investment professionals is clear: a disciplined, long-term approach, grounded in sound financial principles, is the most effective strategy for navigating the current market turmoil.