Meta & Microsoft in Bear Market. So Why are Markets at Highs?

📈 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, Spotify, YouTube This week on The Art of Investing, the team are joined by returning guest Stewy Thompson, as Rich dials in from Miami and CJ checks in from sunny Norfolk.It’s been a far more mixed week for markets and the portfolio, with sharp divergences across asset classes. While equities continue to broaden out beyond big tech, commodities have sold off heavily and currency movements are starting to play a bigger role.The team unpack the ongoing rotation in markets, the implications of a stronger US dollar, and whether the AI-driven rally is evolving rather than ending. They also explore growing pressures in private markets, shifting macro conditions, and what all of this means for the portfolio going forward.This Week's Highlights:📉 Commodities Come Under PressureGold enters a bear market and silver crashes sharply, with copper and broader commodities also selling off in a difficult week for the asset class.💵 Dollar Strength ReturnsA stronger US dollar puts pressure on commodities and emerging markets, while also impacting hedged positions within the portfolio.🔄 Market Rotation ContinuesThe rally broadens beyond mega-cap tech, with the Russell 2000 and equal-weight S&P hitting new highs as money rotates within equities.🤖 AI Story EvolvesBlowout results from memory chipmakers reinforce the AI theme, but questions remain over sustainability and valuations.📉 Magnificent Seven UnderperformSeveral of the largest US tech stocks enter bear market territory, highlighting increasing dispersion across markets.🏦 Private Markets Show StrainRising redemption requests and liquidity challenges suggest growing stress in private credit and equity markets.🌍 Diverging Global EconomiesThe US economy continues to show strength, while the UK outlook weakens amid political uncertainty and slowing growth.Portfolio Snapshot – Week 45:No changes were made to the portfolio this week.📊 Weekly portfolio performance: -1.2%📈 Total return since inception: +23.7%📅 2026 year-to-date return: +11.1%Top Performers:📈 iShares MSCI India ETF: +2.0% WoW📈 iShares Russell 2000 ETF: +1.3% WoW📈 UK Gilts: +0.1% WoWUnderperformers:📉 BlackRock World Mining Trust PLC: -11.5% WoW📉 WisdomTree Copper ETF: -6.1% WoW📉 iShares Core MSCI EM IMI ETF: -1.7% WoWBig Questions This Week:• Is the rotation away from mega-cap tech a temporary shift or a longer-term trend?• Have commodities fallen far enough to become attractive again?• How sustainable is the recent strength in the US dollar?• Will AI continue to drive market performance beyond the largest tech names?• Are private markets starting to pose a systemic risk?• What impact will UK political changes have on growth and markets?What You’ll Learn:✔️ Why a stronger dollar creates pressure across global markets✔️ What’s driving the sharp sell-off in commodities✔️ How market leadership is shifting beyond big tech✔️ Why private markets are facing liquidity challenges✔️ How AI investment is feeding through into the real economy✔️ What the team are watching next in the portfolioDisclaimer: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.