Switching Out of Bonds into Equities for the New ISA Year

Show Notes

This week on The Art of Investing, Rich McDonald, Mark “Spice” Holden and Chris “CJ” Fellingham bring over 100 years of combined experience across wealth and hedge fund management to unpack a dramatic rebound across markets, as a fragile ceasefire in the Middle East sends oil lower, rate expectations ease, and risk assets rally hard.

With bonds recovering, equities surging and some of the hardest-hit areas snapping back sharply, the team ask whether this is the start of a more durable recovery, or simply relief after weeks of pressure.

They also revisit the case for the US, Japan and bonds, debate whether the portfolio should add more risk here, and answer listener questions on how to think about positioning in fast-moving markets.

As always, the key theme remains: when markets move fast, discipline matters more than drama.

This Week’s Highlights:

🕊️ Ceasefire Relief Rally

A two-week ceasefire helps trigger a broad rebound in risk assets and a sharp fall in oil.

⛽ Oil Price Drops Back

A 15% fall in oil eases inflation fears and takes pressure off rate expectations.

🏦 Bond Markets Recover

Gilts and treasuries bounce as markets scale back the chance of further rate hikes.

🇺🇸 US Back in Focus

The team revisit whether the S&P 500 now offers better value after recent derating.

🇯🇵 Japan Rebounds Strongly

Japanese equities rally as lower energy prices improve the outlook.

🧠 Discipline Over Noise

Why the best response to volatile headlines is often patience, not panic.

Portfolio Snapshot - Week 34:

Weekly performance: +5.1%

Total return since inception: +16.2%

Top Performers

🥇 VanEck Crypto and Blockchain Innovators ETF: +11.9%

🥈 BlackRock World Mining Trust PLC: +10.8%

🥉 iShares Nikkei 225 ETF: +8.0%

Underperformers

📉 Cash: +0.1%

📉 iShares $ Treasury Bond 7–10 yr UCITS ETF: +0.5%

📉 iShares UK Gilts 0–5yr ETF: +0.6%

Portfolio Positioning:

The portfolio remains diversified across:

• Commodities and real assets

• Global equities (US, UK, Europe, EM)

• Small and mid-cap exposure

• Bonds and cash as stabilisers

This week’s move shows how quickly leadership can reverse when macro pressure starts to ease.

Big Questions This Week:

• Will the ceasefire hold long enough for markets to keep recovering?

• Is the US starting to look attractive again?

• Are bonds still worth holding versus equities?

• When should investors add risk back in?

What You’ll Learn:

✔️ Why oil matters so much for inflation and rate expectations

✔️ How quickly markets can reprice when fear fades

✔️ Why bonds don’t always outperform during stress

✔️ How to think about adding risk after a sharp rebound

📈 Download the full Portfolio Performance Slides

View the portfolio breakdown: here

📧 Get in touch: [e-mail]

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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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What is The Art of Investing?

Looking to turn Market Chaos into Investing Clarity?

Welcome to The Art of Investing - a brand new podcast that transforms market noise into clear investing strategies. Brought to you by IG, global investing platform, FTSE 250 and over 50 years in the markets.

This isn't your typical finance show.

Whether you're taking your first steps into the investment world or you're a seasoned investor looking to sharpen your edge, you've found your new secret weapon.

Every Friday, join hosts Rich McDonald, Mark Holden & Chris Fellingham – three investing legends bringing you a combined century of market wisdom. They'll decode the week's biggest moves, reveal the hot topics that could make or break a portfolio, and share the insights that separate winners from wishful thinkers.

But here's where we blow every other podcast out of the water:

Introducing our live Model Portfolio. With IG's access to thousands of global markets, you'll watch our strategy unfold in real-time, unfiltered investment action, that you can follow.
Every week, we'll pull back the curtain on exactly how the portfolio is performing. The wins, the losses, the lessons learned – it's all here. This is investing education with skin in the game.

Are you ready to master the art of investing?

This podcast is provided for educational and informational purposes only. The content presented is not intended as personal investment advice, financial planning guidance, or a recommendation to buy, sell, or hold any particular securities or investments. All discussions regarding the model portfolio are for educational purposes only. Past performance is not an indication of future results. 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.