Meta & Microsoft in Bear Market. So Why are Markets at Highs?

📈 Download the full Portfolio Performance Slides View the portfolio breakdown: https://drive.google.com/file/d/1-Wb5... 📧 Get in touch: [email protected] 📱 Behind the scenes: _theartofinvesting on TikTok 🎧 Listen on: Apple - https://podcasts.apple.com/gb/podcast... Spotify - https://open.spotify.com/show/4bmvfbD... This week on The Art of Investing, the team are joined by returning guest Stewy Thompson, as Rich dials in from Miami and CJ checks in from sunny Norfolk. It’s been a far more mixed week for markets and the portfolio, with sharp divergences across asset classes. While equities continue to broaden out beyond big tech, commodities have sold off heavily and currency movements are starting to play a bigger role. The team unpack the ongoing rotation in markets, the implications of a stronger US dollar, and whether the AI-driven rally is evolving rather than ending. They also explore growing pressures in private markets, shifting macro conditions, and what all of this means for the portfolio going forward. Chapters: 00:00 Welcome from Norfolk, Miami & Edinburgh 01:25 Market update: oil slides 6%, inflation back in focus 02:22 Chip sell-off & Micron smashes guidance 05:54 Magnificent Seven bear market & SpaceX 09:16 Commodities crash: gold, silver & copper 13:04 Private credit cracks, PMIs & Greenspan's legacy 19:17 Live portfolio review & the dollar's surge 26:23 Inflation, the Fed & where rates go next 32:47 The AI CapEx debate & "maximum vulnerability" 46:13 UK politics: new PM, next chancellor & sterling This Week's Highlights: 📉 Commodities Come Under Pressure Gold enters a bear market and silver crashes sharply, with copper and broader commodities also selling off in a difficult week for the asset class. 💵 Dollar Strength Returns A stronger US dollar puts pressure on commodities and emerging markets, while also impacting hedged positions within the portfolio. 🔄 Market Rotation Continues The rally broadens beyond mega-cap tech, with the Russell 2000 and equal-weight S&P hitting new highs as money rotates within equities. 🤖 AI Story Evolves Blowout results from memory chipmakers reinforce the AI theme, but questions remain over sustainability and valuations. 📉 Magnificent Seven Underperform Several of the largest US tech stocks enter bear market territory, highlighting increasing dispersion across markets. 🏦 Private Markets Show Strain Rising redemption requests and liquidity challenges suggest growing stress in private credit and equity markets. 🌍 Diverging Global Economies The US economy continues to show strength, while the UK outlook weakens amid political uncertainty and slowing growth. Portfolio Snapshot – Week 45: No changes were made to the portfolio this week. 📊 Weekly portfolio performance: -1.2% 📈 Total return since inception: +23.7% 📅 2026 year-to-date return: +11.1% Top Performers: 📈 iShares MSCI India ETF: +2.0% WoW 📈 iShares Russell 2000 ETF: +1.3% WoW 📈 UK Gilts: +0.1% WoW Underperformers: 📉 BlackRock World Mining Trust PLC: -11.5% WoW 📉 WisdomTree Copper ETF: -6.1% WoW 📉 iShares Core MSCI EM IMI ETF: -1.7% WoW Big Questions This Week: • Is the rotation away from mega-cap tech a temporary shift or a longer-term trend? • Have commodities fallen far enough to become attractive again? • How sustainable is the recent strength in the US dollar? • Will AI continue to drive market performance beyond the largest tech names? • Are private markets starting to pose a systemic risk? • What impact will UK political changes have on growth and markets? What You’ll Learn: ✔️ Why a stronger dollar creates pressure across global markets ✔️ What’s driving the sharp sell-off in commodities ✔️ How market leadership is shifting beyond big tech ✔️ Why private markets are facing liquidity challenges ✔️ How AI investment is feeding through into the real economy ✔️ What the team are watching next in the portfolio 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.