AI CapEx and Rate Rises - The Double Trouble Hitting Big Tech

Can’t get enough of The Art of Investing? Take a look here for even more content! https://youtu.be/B0FzP8sjd_w 📈 Download the full Portfolio Performance Slides View the portfolio breakdown: here📧 Get in touch: [email protected]📱 Behind the scenes: _theartofinvesting on TikTok🎧 Listen on: Apple & SpotifyThis week on The Art of Investing, host James “Jimmy” Ovenden steps in for Richard McDonald, joined by Mark “Spice” Holden and Chris “CJ” Fellingham.It’s been a tough week for the portfolio, with markets taking a hit as strong US economic data reshapes interest rate expectations. The team break down a staggering $400 billion in capital raise announcements from the world’s biggest tech companies, explore what new Fed Chair Kevin Warsh’s first meeting might signal, and ask the question on every investor’s mind: why is the oil price falling even as bombs fly in the Middle East?This Week's Highlights:📉 Markets Pull BackUS equities suffer their worst week of the year as the Nasdaq falls 6% and the semiconductor index tumbles 11%.💰 $400 Billion Capital GrabOracle, Meta, OpenAI, Anthropic, Amazon and Space-X collectively announce hundreds of billions in fresh capital raises - raising the question of who is actually funding the AI boom.🚀 Space-X Goes PublicHighly anticipated IPO prices at $135/share with 4x oversubscription, entering the Nasdaq and Russell indices but not the S&P 500.📊 Rate Rise Fears ReturnStrong US non-farm payrolls trigger a repricing of rate expectations - with up to three hikes now on the table and Kevin Warsh’s first Fed meeting closely watched.🛢️ The Oil Price ParadoxDespite ongoing Middle East tensions, the oil price falls - the team explore why markets are ignoring the disaster narrative.🇮🇳 India’s Unlikely ComebackAfter weeks of underperformance, iShares MSCI India ETF is this week’s best performer, up 0.5% - just ahead of a deep-dive episode with JP next week.Portfolio Snapshot – Week 43:No changes were made to the portfolio this week.📊 Weekly portfolio performance: –2.55%📈 Total return since inception: +20.83%📅 2026 year-to-date return: +8.30%Top Performers:📈 iShares MSCI India ETF: +0.5% WoW📈 Cash: +0.1% WoW📈 iShares UK Gilts 0–5yr ETF: +0.1% WoWUnderperformers:📉 BlackRock World Mining Trust PLC: –10.6% WoW📉 iShares Nikkei 225 ETF: –6.5% WoW📉 iShares Core MSCI EM IMI ETC: –6.3% WoWBig Questions This Week:• Is $400bn in tech capital raises the peak of AI fundraising, or is there more to come?• Will Kevin Warsh’s first Fed meeting signal rate rises or hold the line?• Why is the oil price falling when the Middle East is at its most volatile?• Is the portfolio’s low AI exposure a vulnerability or a hidden strength?• Is India finally turning a corner - or was this week a one-off?What You’ll Learn:✔️ Why good economic news became bad news for markets this week✔️ How $400bn in capital raises is reshaping global equity flows✔️ What Space-X’s IPO means for investors using Nasdaq ETFs✔️ Why the oil price is defying Middle East conflict - and what it signals✔️ How the portfolio’s AI exposure stacks up against global indicesDisclaimer: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.