At a Glance
Advisory Highlight: When Your Decision-Maker Lives Far Away
- Naming the person you trust most as your estate trustee or attorney under a power of attorney is the easy part. Whether they can act quickly from another province or country is the question worth asking.
- Ontario does not generally require an estate trustee or attorney to live here, but distance can add bonding requirements, banking friction, tax-residency complications and delay at the worst possible moment.
- Residence should not be the deciding factor on its own. The better plan pairs the right person with local support, a capable alternate and clear authority to spend on professional help.
Market Review
- The second quarter was a strong one. The S&P 500 returned 14.4% and the NASDAQ 20.2%, as a Middle East ceasefire took hold and the energy-driven turbulence that opened the year eased.
- Information technology led at +30.3% while energy fell 10.0%. Canada’s 6.3% gain trailed the U.S., reflecting the TSX’s smaller weighting in the technology names that drove the quarter.
- Emerging markets posted their strongest quarter since 2009, led by North Asian technology exporters. Leadership continues to come from more than one place.
Market Theme: What Today’s Starting Point Implies
- Research by Javier Estrada shows that fast earnings growth and rising valuations rarely happen together. Over every horizon since 1871, the two have been negatively correlated.
- On every measure, today’s starting point is more stretched than many previous market peaks: a trailing P/E near 31.9, a dividend yield of 1.1%, and a prior decade of 14.8% annual returns.
- There is a real counterweight. Q2 2026 earnings are tracking to +24.7% year over year, and AI investment is broadening beyond the chipmakers. We are not predicting an imminent decline.
Portfolio Highlights
- We hold tail-risk protection designed to respond asymmetrically to sudden shocks. The 2000 to 2009 average of –0.7% a year masked two violent collapses, and that lumpiness is what we aim to hedge.
- A Total Portfolio Approach diversifies the sources of return themselves, integrating private equity, private credit and real assets alongside public markets.
- We would rather enter a potentially lower-return decade with resilience built in than hope the last ten years simply repeat.
Tall Oak Pooled Funds
Capital Appreciation Pool: Positioned for long-term growth with a disciplined mix of quality equities, fixed income, and alternatives.
Diversified Income Pool: Focused on stable dividends and consistent returns through high-quality bonds, income-oriented alternative investments, and dividend-paying equities.
The views expressed in this commentary are those of Tall Oak Capital Advisors as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Statistics, factual data and other information are from sources Tall Oak believes to be reliable but their accuracy cannot be guaranteed. This commentary is intended for distribution only in those jurisdictions where Tall Oak Capital Advisors are registered. Securities-related products and services are offered through Raymond James Correspondent Services Ltd., member Canadian Investor Protection Fund. Insurance products and services are offered through Gryphin Advantage Inc., which is not a member-Canadian Investor Protection Fund. This commentary may provide links to other Internet sites for the convenience of users. Tall Oak Capital Advisors is not responsible for the availability or content of these external sites, nor does Tall Oak Capital Advisors endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Tall Oak Capital Advisors adheres to.
