This week on The Art of Investing, Rich McDonald, Mark “Spice” Holden and Chris “CJ” Fellingham unpack a volatile week in global markets as geopolitical tensions, rising oil prices and credit concerns ripple through investor sentiment.

Despite the second consecutive weekly drawdown in the portfolio, markets have remained relatively resilient. The team discuss why energy shocks quickly affect inflation expectations, how investors are reacting to shifting rate outlooks, and why private credit and private equity liquidity are attracting renewed scrutiny.

They also explore how different sectors react to geopolitical shocks and why diversification still matters when volatility rises.

This Week’s Highlights:

⛽ Oil Shock Hits Markets

Energy prices surge as Middle East tensions intensify.

🏦 Private Credit Questions

Liquidity concerns emerge in parts of the private market.

📉 Rate Expectations Shift

Investors reassess the outlook for central bank cuts.

📊 Sector Rotation Continues

Software rebounds while travel and energy-sensitive sectors struggle.

⚠️ Liquidity Risk Debate

Restrictions in some funds highlight structural challenges.

Portfolio Snapshot:

Portfolio Snapshot – Week 30

Weekly performance: –2.1%

Total return since inception: +14.5%

Top Performers

🥇 Cash: +0.1%

🥈 WisdomTree Copper ETF: –0.3%

🥉 iShares $ Treasury Bond 7–10yr UCITS ETF: –0.4%

Underperformers

📉 iShares Nikkei 225 ETF: –4.3%

📉 BlackRock World Mining Trust PLC: –4.2%

📉 iShares Russell 2000 ETF: –3.8%

Portfolio Positioning:

The portfolio remains positioned toward:

• Commodities and real assets

• Global equities beyond US mega-cap concentration

• Select small and mid-cap exposure

• Defensive allocations including gilts, treasuries and cash

The focus remains diversification and long-term resilience rather than reacting to short-term headlines.

Big Questions the Team Debate:

• Could rising oil prices delay rate cuts?

• Are stresses emerging in private credit markets?

• How resilient are global equities to geopolitical shocks?

• What sectors benefit during energy spikes?

What You’ll Learn:

✔️ Why oil prices can shift inflation expectations quickly

✔️ How liquidity risks appear in private markets

✔️ Which sectors react most during geopolitical shocks

✔️ Why diversification matters during volatility

📈 Download the full Portfolio Performance Slides

View the portfolio breakdown: here

📧 Get in touch: theartofinvesting@ig.com

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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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