SpaceX on Launchpad While Bonds Dampen Risk Sentiment

This week on The Art of Investing, Rich McDonald, Mark “Spice” Holden and Chris “CJ” Fellingham break down a more volatile week in global markets, as rising bond yields, geopolitical tensions and shifting expectations begin to test the strength of the recent rally.

With over 100 years of combined experience across wealth and hedge fund management, the team explore whether markets are entering a more uncertain phase, what higher-for-longer rates mean for investors, and why cash is starting to look increasingly attractive in the short term.

This Week’s Highlights:

📉 Markets Pause After Strong Run
After seven consecutive weeks of gains, US equities pulled back as rising bond yields and inflation concerns weighed on sentiment.

📊 Bond Yields Surge Globally
US 30-year yields hit their highest level since 2007, with similar moves seen across Japan and Europe, putting pressure on risk assets.

🛢️ Oil Prices Climb Again
Brent crude surged to new highs amid geopolitical tensions, reinforcing inflation concerns and adding further uncertainty to markets.

🤖 AI & Earnings Still in Focus
Strong earnings continue across tech and AI-driven companies, with Nvidia results expected to be a key catalyst for markets this week.

🌍 Global Growth Divergence
Japan delivered stronger-than-expected GDP growth, while China data disappointed, highlighting diverging global economic momentum.

⚡ The Hidden AI Infrastructure Boom
Massive investment into data centres and energy infrastructure continues, with utilities and industrial players positioning for long-term demand.

Portfolio Snapshot – Week 46:

Weekly portfolio performance: –1.6%
Total return since inception: +20.3%
2026 year-to-date return: +7.8%

Top Performers

🥇 iShares MSCI India ETF: +0.6% WoW
🥈 Invesco Stoxx Euro 600 UCITS ETF GBP: +0.2% WoW
🥉 iShares Core FTSE 100 ETF: +0.1% WoW

Underperformers

📉 BlackRock World Mining Trust: –8.2% WoW
📉 Wisdom Tree Copper ETF: –4.5% WoW
📉 iShares Nikkei 225 ETF: –2.6% WoW

Big Questions This Week:

• Are rising bond yields the biggest risk to equities right now?
• Is this just a healthy pullback or the start of something bigger?
• How sustainable is the AI-driven growth story?
• Should investors be increasing cash positions in this environment?

What You’ll Learn:

✔️ Why bond markets are driving global asset prices
✔️ How rising yields impact equities and valuations
✔️ The role of cash in uncertain markets
✔️ Key signals to watch for a potential market shift

📈 Download the full Portfolio Performance Slides
View the portfolio breakdown: here

📧 Get in touch: [email protected]

Disclaimer:

This podcast is provided for educational and informational purposes only. The content presented is not intended as personal investment advice or a recommendation to buy, sell, or hold any particular securities or investments. All discussions regarding the model portfolio are illustrative and for educational purposes.

Your capital is at risk. The value of shares, ETFs and ETCs can fall as well as rise, which could mean getting back less than you originally put in.

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