The Art of Investing

📈 Download the full Portfolio Performance Slides: Here
📧 Get in touch: theartofinvesting@ig.com
📱 Behind the scenes: @_theartofinvesting on TikTok | @theartofinvestingpod on Instagram
🎧 Listen on: Apple, Spotify, YouTube 

This week on The Art of Investing, after a sharp reversal across AI-linked stocks, the team explain how Leopold Aschenbrenner’s highly leveraged AI trade became one of the biggest stories in markets, why crowded positioning matters, and how forced selling helped shape the latest moves across tech, software, commodities and emerging markets.
They also look at the parallels with previous market excesses, including 1929, ask whether AI could be disinflationary, and debate whether markets can keep running into Jackson Hole before investors need to think about taking risk down.

This Week’s Highlights:
📈 Portfolio Jumps +4.2%
A strong week takes the portfolio to +25.5% since inception, with no changes made this week.
⚠️ Leopold and Leverage
The team unpack how leverage works, why margin calls can force selling, and why a “one big trade” portfolio can unravel quickly.
⚒️ Miners Lead the Way
BlackRock World Mining Trust tops the portfolio, up +10.4% on the week as gold, silver and copper strength feed through to mining shares.
🇯🇵 Japan Bounces Hard
The Nikkei position rises +9.5%, helped by currency intervention and a stronger week for Japanese equities.
🌏 Emerging Markets Rally
MSCI Emerging Markets gains +6.5%, supported by Korea’s sharp rebound, a weaker US dollar and renewed appetite for growth.
🤖 Nasdaq Reverses Higher
The Nasdaq position rises +5.9% as money flows back into AI and tech after weeks of pressure.
📉 1929 Lessons
Chris draws on Andrew Ross Sorkin’s 1929 to compare today’s market risks: leverage, speculative new technology, retail risk-taking and policy error.
🏦 Jackson Hole in Focus
The team debate whether the Fed is “running the economy hot” and why late August could be important for market direction.

Portfolio Snapshot – Week 51:
📊 Weekly portfolio performance: +4.2%
📈 Total return since inception: +25.5%
📅 2026 year-to-date return: +13.0%
Top Performers:
📈 BlackRock World Mining Trust PLC: +10.4% WoW
📈 iShares Nikkei 225 ETF: +9.5% WoW
📈 iShares Core MSCI EM IMI ETF: +6.5% WoW
📈 Invesco EQQQ Nasdaq 100 UCITS ETF: +5.9% WoW
📈 XLI SPDR US Industrials ETF: +5.3% WoW
Underperformers:
📉 iShares Core FTSE 100 ETF: -0.1% WoW
📈 Cash: +0.1% WoW
📈 iShares UK Gilts 0-5yr ETF: +0.5% WoW
📈 iShares MSCI India ETF: +1.3% WoW

Portfolio Decision:
No changes were made to the portfolio this week. The team remain positioned for the current market rally, while noting they may look to reduce some risk later in August if markets continue to run strongly.

Big Questions This Week:
• What is leverage, and why can it be so dangerous?
• How can a hedge fund lose control of a winning trade?
• Are AI stocks back in charge, or is this just a relief rally?
• Why does a weaker dollar help commodities and emerging markets?
• Are there real parallels between today’s market and 1929?
• Could AI improve margins without reigniting inflation?
• Should investors enjoy the August rally, or prepare to reduce risk before September?
What You’ll Learn:
✔️ How leverage magnifies gains and losses
✔️ What margin calls mean in real market conditions
✔️ Why crowded trades can reverse violently
✔️ How AI is affecting earnings, margins and market leadership
✔️ Why commodities, Japan and emerging markets performed strongly this week
✔️ Why the team are watching Jackson Hole before making the next portfolio move

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.

📊 The Art of Investing Survey – Fill in the form here, we’d love your feedback: https://forms.office.com/e/tCyxzN48Ks
📈 Download the full Portfolio Performance Slides
View the portfolio breakdown: here
📧 Get in touch: theartofinvesting@ig.com
📱 Behind the scenes: @_theartofinvesting on TikTok
🎧 Listen on: Apple, Spotify, YouTube 

This week on The Art of Investing, the team assess the latest Federal Reserve decision and the key takeaways from earnings season, examining what both could mean for the market outlook.
The team unpack a volatile market backdrop as the AI trade begins to unwind, bond markets take centre stage, and central bank credibility comes into question.
A sharp sell-off in semiconductor and AI-linked stocks has driven significant moves across global markets, particularly in Japan and emerging markets, while rising bond yields are beginning to challenge equity valuations.
The episode explores whether investors truly understand their exposure, particularly within popular themes like AI and emerging markets, and how concentration risk can quietly build within diversified portfolios.
Alongside this, the team break down another week of portfolio performance and a major shift in positioning, as they debate whether this market correction presents a buying opportunity or a warning sign of deeper structural change.
This Week’s Highlights:
📉 Portfolio Pulls Back
A difficult week sees the portfolio fall -1.7%, driven largely by weakness in AI-linked markets.
🤖 AI Trade Unwinds
Semiconductors and AI stocks come under pressure, with sharp declines across global tech markets.
🇯🇵 Japan & Emerging Markets Hit
Nikkei and EM equities lead losses as tech exposure and global positioning unwind.
📈 UK Markets Show Strength
FTSE 100 reaches new highs, highlighting ongoing rotation into value-led markets.
🏦 Central Banks in Focus
The Federal Reserve, Bank of England, and Bank of Japan all take centre stage in a pivotal week for policy.
📊 Bond Yields Rise Sharply
Markets begin to question central bank credibility, pushing yields higher and tightening financial conditions.
🔄 Rotation Accelerates
Capital continues to shift away from growth and into value, changing the leadership within markets.
Portfolio Snapshot – Week 50:

📊 Weekly portfolio performance: -1.7%
📈 Total return since inception: +21.4%
📅 2026 year-to-date return: +8.8%
Top Performers:
 📈 iShares MSCI India ETF: +2.2%
 📈 iShares Core FTSE 100 ETF: +1.6%
 📈 Vanguard FTSE 250: +0.3% 
Underperformers:
 📉 iShares Nikkei 225 ETF: -6.7%
 📉 iShares Core MSCI EM IMI ETC: -5.3%
 📉 BlackRock World Mining Trust PLC: -4.7% 
Portfolio Changes:
A significant shift this week as the team deploy capital back into equities:
Reduce UK Gilts (0–5yr) by 7.5%
Add 2.5% to Japan
Add 2.5% to Nasdaq
Add 2.5% to FTSE 250

The move reflects a view that recent market weakness may present selective opportunities, while also maintaining diversification across regions and styles.
Big Questions This Week:
• Has the Federal Reserve lost credibility with markets?
• Are rising bond yields a bigger threat to equities than expected?
• Is the AI trade undergoing a healthy correction, or something more structural?
• Can value continue to outperform growth in this new environment?
• Does this sell-off present a buying opportunity, or signal further downside?
What You’ll Learn:
✔️ Why bond markets are now driving equity market direction
 ✔️ How rising yields impact growth vs value investing
 ✔️ What’s really behind the recent AI and semiconductor sell-off
 ✔️ How professional investors navigate earnings season volatility
 ✔️ Why diversification matters more than ever in shifting market regimes
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.

📊 The Art of Investing Survey – Fill in the form here, we’d love your feedback: https://forms.office.com/e/tCyxzN48Ks
📈 Download the full Portfolio Performance Slides
 View the portfolio breakdown: here
📧 Get in touch: theartofinvesting@ig.com
📱 Behind the scenes: @_theartofinvesting on TikTok
🎧 Listen on: Apple, Spotify, YouTube 

Overview:
This week on The Art of Investing, the team unpack a market where volatility is building beneath the surface, with credit markets, AI spending, and rising oil prices all contributing to a more fragile backdrop.

While headline equity performance remains relatively steady, attention is turning to credit default swaps (CDS) as a key signal of risk, particularly in companies heavily exposed to the AI boom.
From Oracle’s growing debt pile to increasing competition across AI models, this episode explores whether the market may be overestimating the returns from AI investment, and what that could mean for both equities and credit markets.
Alongside this, the team break down another week of portfolio performance and the broader macro picture, including rising bond yields, commodity strength, and continued sector rotation.

This Week’s Highlights:
📈 Portfolio Edges Higher
 A steady week sees the portfolio rise +0.4%, continuing its strong long-term performance.
⚒️ Commodities Continue to Lead
 Copper and mining equities outperform, supported by supply constraints and ongoing demand linked to AI infrastructure.
🛢️ Oil Prices Push Higher
 Brent crude continues its upward move, adding pressure to global markets and import-heavy economies.

💳 CDS Back in Focus
 Credit default swaps re-emerge as a key market signal, highlighting growing concerns around corporate debt levels.
🤖 AI Trade Under Pressure
 Rising costs and increasing competition begin to challenge the assumption of dominant, high-margin AI winners.

📉 Rotation Away from Tech
 Semiconductor and AI-linked stocks face renewed pressure as capital rotates elsewhere.
Portfolio Snapshot – Week 49:
No changes were made to the portfolio this week.
📊 Weekly portfolio performance: +0.4%
📈 Total return since inception: +23.1%
📅 2026 year-to-date return: +10.5%

Top Performers:
📈 BlackRock World Mining Trust PLC: +3.3% WoW
📈 WisdomTree Copper ETF: +3.1% WoW
📈 Vanguard FTSE 250: +2.3% WoW

Underperformers:
📉 iShares Nikkei 225 ETF: -2.7% WoW
📉 iShares MSCI India ETF: -1.2% WoW
📉 XLI SPDR US Industrials ETF: -0.5% WoW

Big Questions This Week:
• Are credit markets signalling deeper risks beneath the surface of equity markets?
 • Can AI investment deliver the returns needed to justify rising debt levels?
 • Is the shift from “winner takes all” to a more competitive AI landscape underway?
 • How are rising oil prices and bond yields impacting global growth expectations?
 • What does increasing volatility mean for portfolio positioning going forward?
What You’ll Learn:
✔️ What credit default swaps (CDS) reveal about market risk
✔️ Why AI competition could reduce pricing power and returns
✔️ How rising debt levels are impacting key AI-linked companies
✔️ What higher oil prices and bond yields mean for investors
✔️ How the team are navigating volatility within 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.

📊 The Art of Investing Survey – Fill in the form here, we’d love your feedback: https://forms.office.com/e/tCyxzN48Ks
📈 Download the full Portfolio Performance Slides
 View the portfolio breakdown: here
📧 Get in touch: theartofinvesting@ig.com
📱 Behind the scenes: @_theartofinvesting on TikTok
🎧 Listen on: Apple, Spotify, YouTube 

This week on The Art of Investing, the team navigate a shortened trading week where, despite markets feeling under pressure, the portfolio continues to edge higher, now up +22.6% since inception and +10.1% year-to-date.

But beneath the surface, things are shifting quickly.

With oil surging nearly 20% in just a few days, bond yields climbing, and AI continuing to redirect capital across the global economy, the team unpack a market that feels increasingly volatile, even when headline performance looks steady.
From strong moves in commodities to sharp declines in legacy tech, and a wave of takeover activity across the UK, this episode explores where capital is flowing, and what that means for investors right now.

This Week’s Highlights:

📈 Portfolio Pushes Higher
 A positive start to the week sees the portfolio rise +1.1%, continuing its strong long-term performance.
⚒️ Copper Leads the Charge
 WisdomTree Copper ETF tops the leaderboard, up +4.1%, driven by falling inventories and strong demand signals.

🛢️ Oil Jumps Sharply
 Oil prices surge nearly 20%, lifting commodities and adding pressure across global markets.

🤖 AI Reshaping Markets
 Capital continues to rotate into AI, with traditional software names like IBM falling sharply as spending shifts.

📊 Volatility Around Earnings
 Large swings in individual stocks highlight a market increasingly driven by expectations vs reality.

🇬🇧 UK Takeover Activity Surges
 A wave of M&A activity points to potential undervaluation, with significantly more takeovers than new listings.

📉 Bond Yields Climb
 Rising yields suggest markets are beginning to price in the possibility of higher interest rates.

Portfolio Snapshot – Week 48:
No changes were made to the portfolio this week.
📊 Weekly portfolio performance: +1.1%
📈 Total return since inception: +22.6%
📅 2026 year-to-date return: +10.1%

Top Performers:
📈 WisdomTree Copper ETF: +4.1% WoW
📈 BlackRock World Mining Trust PLC: +2.0% WoW
📈 iShares Nikkei 225 ETF: +2.0% WoW

Underperformers:
📉 iShares Core MSCI Emerging Markets ETF: +0.3% WoW
📉 iShares Core FTSE 100 ETF: +0.3% WoW
📉 iShares UK Gilts 0–5yr ETF: 0.0% WoW

Big Questions This Week:
• Is the surge in oil prices sustainable, or just a short-term shock?
• Are bond markets signalling that interest rates could move higher again?
• How much disruption is AI really causing across traditional industries?
• Why are UK companies being taken over at such a high rate?
• What does continued volatility mean for portfolio positioning?

What You’ll Learn:
✔️ What’s driving the latest moves in commodities and oil
✔️ Why AI is pulling capital away from legacy sectors
✔️ How takeover activity reveals hidden value in markets
✔️ What rising bond yields mean for investors
✔️ How the team are thinking about volatility right now

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.

📊 The Art of Investing Survey – Fill in the form here, we’d love your feedback: https://forms.office.com/e/tCyxzN48Ks
📈 Download the full Portfolio Performance Slides here
📧 Get in touch: theartofinvesting@ig.com
📱 Behind the scenes: _theartofinvesting on TikTok | @theartofinvestingpod (Instagram)
🎧 Listen on: Apple, Spotify, YouTube 

Happy Birthday to us! This week on The Art of Investing, the team mark one year of the portfolio with a more volatile week in markets, as geopolitical tensions, oil price moves and continued rotation across equities begin to test performance.
While the portfolio takes a step back, the broader conversation focuses on what’s really driving markets right now - from renewed pressure in commodities and emerging markets, to ongoing shifts within equities and growing dispersion across global indices.
The team also explore two key themes this week: the hidden concentration within ETFs - comparing cap-weighted vs equal-weighted investing - and the rise of thematic investing, including how to think about geographic and sector diversification.
This Week’s Highlights:
📉 Markets Pull Back
 A weaker week across global markets sees broad-based declines, with most asset classes finishing in negative territory.

🛢️ Oil Volatility Returns
 Geopolitical tensions push oil prices higher again, reversing recent declines and adding pressure across sectors like airlines and transport.
🔄 Rotation Continues
 Ongoing shifts within equities, with capital moving between sectors and regions rather than leaving markets entirely.

🤖 AI & Tech Volatility
 Continued swings across semiconductor and AI-linked stocks, highlighting the fragility of recent momentum.
🇯🇵 Japan Under Pressure
 After a strong run, rising bond yields raise questions around sustainability and potential profit-taking.
📉 Commodities Pause
 A cooling period for commodities, with weaker China demand and a stronger dollar weighing on prices.

📊 Concentration Still Matters
 Single stock moves continue to have an outsized impact on indices, reinforcing the importance of understanding what you own.
Portfolio Snapshot – Week 47:
No changes were made to the portfolio this week.

Weekly portfolio performance: -2.2%
Total return since inception: +21.5%
 2026 year-to-date return: +9.0%

Top Performers:
📈 Cash: +0.1% WoW
📈 iShares Core FTSE 100 ETF: -0.0% WoW
📈 iShares UK Gilts 0–5yr ETF: -0.3% WoW

Underperformers:
📉 iShares Nikkei 225 ETF: -5.9% WoW
📉 BlackRock World Mining Trust PLC: -5.3% WoW
📉 iShares Core MSCI EM IMI ETF: -4.0% WoW

Big Questions This Week:
• Is this pullback a short-term reaction or the start of a broader slowdown?
• How sustainable is the recent strength in oil prices?
• Are commodities simply pausing, or is the cycle turning?
• What does rising bond yield pressure mean for Japan and global markets?
• Is market concentration still a hidden risk for investors?

What You’ll Learn:
✔️ What’s driving the latest bout of market volatility
✔️ Why oil prices are back in focus
✔️ How rotation is shaping equity performance
✔️ What’s happening in Japan and why it matters
✔️ Why understanding index composition is key
✔️ 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.