The Art of Investing

Equities Surge Higher: Why aren’t Bonds Panicking?

Feb 20, 2026
European markets are powering higher while US bonds stay surprisingly calm. The team probes whether abundant liquidity and AI-driven productivity are keeping inflation in check. They debate the silver short-squeeze chatter and walk through portfolio positioning that favors Europe, emerging markets and cyclicals. AI is used live to measure portfolio volatility and spotlight risks that could topple the rally.
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ANECDOTE

First Trade Pain On The Desk

  • Chris Fellingham recalled his first week on the trading desk losing money on a Morrisons position after a profit warning.
  • The story illustrates how quickly market moves can hit traders and the learning curve in markets.
ADVICE

Stay Equity-Heavy But Watch Bonds

  • Keep bond and cash allocations low to capture long-term equity returns.
  • Chris Fellingham recommends staying equity-heavy while monitoring bond behaviour closely.
INSIGHT

Europe And Japan Leading The Charge

  • European and Japanese markets are outperforming parts of the US this year, driven by rotation from mega-cap tech.
  • Mark Holden notes flows moving into Europe, Japan and FTSE helped those indices lead gains.
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