Tail risks: drones, shipping and gas disruption

This week on The Art of Investing, Rich McDonald, Mark “Spice” Holden and Chris “CJ” Fellingham unpack a volatile week as geopolitical tensions, banking sector nerves and shifting energy policy collide.

Despite rising uncertainty, from renewed conflict fears to credit market concerns, the portfolio remains resilient. The team discuss whether markets are overreacting, why bank stocks sold off, and what investors should focus on during volatility.

They revisit lessons from past geopolitical shocks and explain why disciplined portfolio construction matters more than reacting to headlines.

Expect sharp macro insight and a clear breakdown of how the team are thinking about risk right now.

This Week’s Highlights:

⚠️ Credit Crisis Fears?

Bank stocks fall as markets briefly price in tighter credit conditions.

🌍 Geopolitics Back in Focus

Rising tensions bring geopolitical risk back to markets.

🇷🇺 Lessons from Russia

Revisiting the 2022 collapse in Russian assets and its lessons.

⛽ Energy Policy Confusion

Governments tax oil producers while calling for more supply.

📉 Market Volatility Returns

Sector swings highlight diversification.

🧠 Staying Rational in Turbulence

Why reacting emotionally to headlines often backfires.

Portfolio Snapshot:

Weekly performance: –2.1%

Total return since inception: +16.6%

Top Performers

🥇 VanEck Crypto & Blockchain Innovators ETF: +4.0%

🥈 Cash: +0.1%

🥉 iShares UK Gilts 0–5yr ETF: –0.1%

Underperformers

📉 iShares Core MSCI EM IMI ETC: –5.7%

📉 iShares Nikkei 225 ETF: –5.1%

📉 BlackRock World Mining Trust PLC: –5.0%

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 and cash

The aim remains building a diversified portfolio able to navigate uncertain markets.

Big Questions the Team Debate:

• Are markets overreacting to fears of a credit slowdown?

• How should investors think about geopolitical shocks?

• What lessons came from the Russian market collapse?

• Why energy policy contradictions could shape inflation

• How diversification helps absorb market shocks

What You’ll Learn:

✔️ Why banking sector moves can trigger market anxiety

✔️ How geopolitical risk affects portfolios

✔️ Why diversification matters during volatility

✔️ The dangers of reacting emotionally to headlines

✔️ How long-term investors should approach risk

📈 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.

Incentives:

JISA Incentive 

Dates: 2nd March to 5th April

Details: Invest £50 and get £50. First 200 clients will get £250. First trade has to be £50 or more to receive the £50 bonus. New clients only. The bonus of £50 will be credited to the Junior ISA by 30 April 2026. 

PROMO CODE: JISAPODCAST

📋T&Cs: https://www.ig.com/uk/jisa-cash-bonus-50-feb-26

https://www.ig.com/uk/jisa-cash-bonus-250-feb-26

7% interest on Cash Incentive

Dates: 2nd March - 13th March 2026

Details: 7% AER variable interest on cash balance up to £5000 for 6 months. Until 31st August 2026. 

Promo Code: INTERESTPODCAST

📋T&Cs: https://www.ig.com/uk/boosted-interest-mar-26