Petrov Commentary:

Over the past couple of weeks, headlines have been noisy, and this has caused some mild jitters in the markets.

The primary driver has been escalating tensions in the Middle East, particularly the developing conflict involving Iran. Whenever instability appears in this region, financial markets react quickly, and for a good reason.

Iran sits near the Strait of Hormuz, one of the most strategically important energy corridors in the world. Roughly one fifth of global oil supply moves through this narrow passage every day. Any disruption to that flow has the potential to push oil prices higher very quickly.

That is exactly what markets are reacting to.

Higher energy prices can complicate the work of central banks. If inflation pressures re-emerge while economic growth slows, policymakers would be forced to navigate a difficult balancing act. This is why geopolitical events often trigger short-term volatility across equity markets.

However, oil prices have recently pulled back as investors assess the likelihood that the conflict may not escalate into a full-scale regional shut-down.

This is a good reminder of how quickly markets process new information.

It’s important to keep a broader perspective. The intraday all-time high of the S&P 500 was 7,002. As I write this, the S&P 500 is at around 6,700. This represents a 4% fluctuation approximately. In the equity-investing world, this is a non-event so far.

Re-read this twice:

Today’s prices already reflect the future impact of today’s uncertainty.

Financial markets have experienced geopolitical shocks many times before: wars, oil embargoes, terrorist attacks, financial crises, and countless other events that once dominated headlines.

In every case, market eventually absorbed the shock and moved forward. This does not mean volatility disappears overnight. It simply means that reacting emotionally to geopolitical development is never a successful investment strategy. In fact, I wouldn’t call it a strategy.

Reminder:

The Petrov Group focuses on building high-quality portfolios that have been stress-tested against the worst possible scenarios. The precautions have already been taken through precise diversification by asset class, by geography, by sector and we screen for the most robust businesses in the world. We have always been focused on professional risk management, rather than the “Flavor of the month”. We are rewarded for our discipline during periods of volatility. We also have a rebalancing strategy ready to be deployed. For our clients, patience always pays off.

Please feel free to forward this to a loved one or a colleague. If you or anyone you know wants to talk about the current market, please feel free to reach out. We take on a limited number of new families, and we primarily do so by referral.

-Alex

Liquidity Events: Planning for What's Next

Are you thinking of selling your business, or did you recently sell your business?

A liquidity event is not just a financial transaction but a life transition as well. Many founders underestimate how much their identity is tied to the business.

Part of our conversation is to help you navigate through this transition.

After a sale or exit, business owners face critical decisions as well. How do I minimize taxes on the proceeds? How do I generate sustainable income from my newfound liquidity? How do I balance protecting my capital with generating returns?

The Petrov Wealth Management Group helps business owners optimize this transition through:

• Integrated tax planning coordination with your external professionals to structure the deal and post-sale strategy for maximum efficiency
• Wealth diversification strategies that move you from single-asset concentration to a balanced, multi-asset portfolio aligned with your goals
• Investment management tailored to your timeline and risk tolerance, whether you're seeking growth, income, or capital preservation

The most successful business owners treat their liquidity event not as an endpoint, but as a wealth transition opportunity which requires careful planning and expert guidance.

If you or someone in your circle is currently going through a liquidity event, please reach out and let us know.

Market Snapshot

FactSet: 03/12/2026 at 3:22pm

A quick heads-up for tax season

Depending on your investment holdings, your final tax slip(s) could arrive throughout the month of March.

If you are set up to receive electronic delivery of your statements, your 2025 tax slips are available through your online platform, including mutual fund tax slips issued by RBC. However, tax slips issued by other issuers outside of RBC will continue to be sent by regular mail.

If you aren’t set up to receive electronic statements, you will receive your tax slips via mail.

To help make tax time easier for you, we can also regroup all the slips and send them to you via email.

Quick important dates:

April 30, 2026 – last day to file your 2025 tax return without penalty.

June 15, 2026 – last day to file your 2025 tax return without penalty if you are self-employed.

As always, the team is here to help. Please let us know if you have any questions.

Cheers,

Alex & the Petrov Wealth Management Group