The Asset Allocator Podcast

Julius Baer has moved from underweight to neutral on UK equities, but does that mean the investment case for Britain is improving?In this episode of the Asset Allocator podcast, Thomas Watts, MPS portfolio manager at Julius Baer, joins Aamina Zafar and David Thorpe to discuss the firm's latest asset allocation decisions and the opportunities and risks facing global investors.Watts explains why the composition of the FTSE 100 makes UK equities an attractive diversifier against US technology stocks, even as concerns persist over UK inflation, interest rates and economic growth. The trio also examines whether the US stock market rally can broaden beyond the Magnificent Seven, how investors can manage exposure to the AI trade, and why Julius Baer is increasing allocations to Europe and emerging markets.Elsewhere, Watts discusses the case for emerging market debt, the role of active and passive investment strategies, and why commodities remain an important hedge against inflation.Listen for insights into portfolio construction, global equity markets, fixed income and investment diversification.Timestamps00:00 - Why Julius Baer has increased its UK equity allocation04:40 - US equities and the economic outlook09:06 - Diversifying beyond US equities and AI10:12 - Is emerging market diversification becoming harder?13:11 - Government bonds, investment grade and duration14:26 - Can commodities protect portfolios against inflation?

Are you more exposed to AI stocks than you realise? As the AI trade comes under pressure and bond markets experience renewed volatility, investors could be taking on risks they never intended.Eleanor Ingilby, head of high net worth and senior portfolio manager at Atomos, joins Asset Allocator to explain why global ETFs can leave investors heavily exposed to artificial intelligence and the Magnificent Seven, and how to build a more diversified investment portfolio.Speaking to David Thorpe and Tara O'Connor, Ingilby explores the opportunities emerging from rising government bond yields, the role of alternative investments and why catastrophe bonds are attracting attention as a source of income and portfolio diversification. From fixed income and alternative assets to AI valuations and long-term investment strategy, this episode examines how wealth managers and financial advisers can navigate today's market uncertainty.00:00 - Market volatility and investment opportunities02:37 - Why portfolio diversification matters05:04 - Catastrophe bonds: An alternative source of income\06:47 - AI stocks, the Magnificent Seven and diversification08:40 - Building defensive portfolios in volatile markets

With bond yields rising, inflation remaining stubborn and US stock markets increasingly dominated by a handful of technology giants, are investors rethinking how they build portfolios?Eric Louw, senior investment manager at Aberdeen, joins Asset Allocator to explain why the firm has been reducing exposure to riskier assets, increasing allocations to government and investment-grade corporate bonds, and finding new opportunities in infrastructure and global equities.Speaking to Aamina Zafar and David Thorpe, Louw discusses whether higher bond yields are here to stay, why shorter-duration bonds currently appeal to Aberdeen, and how infrastructure investments can provide diversification and protection against inflation.The conversation also explores the risks of relying too heavily on the Magnificent Seven and the AI investment boom, alongside opportunities in UK and European small-cap stocks, Japanese equities and emerging markets.Louw also shares the investment lessons of the past five years and explains why disciplined portfolio construction could be more valuable than attempting to predict the next market shock.Timestamps00:00 - Introduction: Aberdeen's asset allocation strategy02:17 - How infrastructure performs when bond yields rise06:13 - Short-term vs long-term bonds: Managing duration risk08:43 - Looking beyond US equities and the Magnificent Seven10:08 - Opportunities in Asia and emerging markets13:25 - Why genuine portfolio diversification matters

Commodities should serve as a reliable safe haven in the event of an equity downturn next year according to Trevor Greetham, head of multi-asset at Royal London Asset Management, who shared his prediction when he joined this week’s Asset Allocator podcast.Joining Aamina Zafar and David Thorpe, Greetham draws parallels between today's economic environment and the stagflation of the 1970s, explaining why geopolitical tensions, energy prices and commodity shortages could make inflation a persistent challenge for investors.He also questions whether the surge in US corporate earnings, fuelled partly by artificial intelligence investment, data centres and semiconductor spending, is sustainable. With US equity valuations elevated, Greetham makes the case for overlooked opportunities in UK and European stocks, describing the UK stock market as a potentially attractive, inflation-resilient investment.The conversation also explores the changing outlook for government bonds, UK gilt yields and inflation-linked gilts, alongside the role of commodities and gold in protecting multi-asset portfolios.Timestamps:00:00 - Trevor Greetham on investing and inflation03:09 - Central banks, interest rates and inflation hedges04:27 - Where is the value in global equities?06:29 - UK stocks, commodities and inflation resilience09:45 - The risks of US stock market concentration14:04 - How to invest in commodities using ETFs and indices

Government bond yields are approaching five per cent, raising a crucial question for investors: could higher interest rates threaten global stock markets, or are bonds becoming a more attractive investment than equities?In this episode of the Asset Allocator podcast, Simoney Kyriakou is joined by Joe Little, global chief strategist at HSBC Asset Management, to discuss the outlook for bond markets, interest rates, inflation and global equities as investors adjust to a higher-for-longer interest rate environment.With US Treasury yields and UK gilt yields rising, Little examines what's driving the global bond sell-off, why inflation-adjusted yields matter and whether government bonds now offer a compelling alternative to stock market investing.The conversation explores the risks higher bond yields pose to equity valuations, why strong corporate earnings continue to support US and European stocks, and what a sustained rise in borrowing costs could mean for investment portfolios.They also discuss the resilience of the US dollar amid geopolitical uncertainty, the implications for emerging markets including China, India and Brazil, and whether the Federal Reserve, Bank of England and European Central Bank have enough room to respond to inflation without damaging economic growth.Little also explains why central banks may deliver fewer interest rate rises than markets currently expect and how that could create opportunities for bond and equity investors.Click here for more investment insights from HSBC Asset Management: Investment Insights | HSBC Asset ManagementTimestamps:00:00 - Why bond yields are rising05:47 - Can higher bond yields hurt stock markets?08:54 - Why the US dollar remains strong13:03 - Are central banks running out of options?16:17 - Have markets priced in too many rate hikes?

How should investors build a diversified portfolio when bond yields are rising, inflation remains a risk and the AI boom is reshaping global equity markets?In this episode of the Asset Allocator podcast, Aamina Zafar and David Thorpe are joined by Darius McDermott, managing director of Chelsea Financial Services, to discuss how investors can position portfolios for today's market environment.McDermott explains why higher bond yields can affect equities as well as fixed income, and why traditional geographic diversification may no longer work quite as expected as AI-related stocks become increasingly important across the US, Asia and emerging markets.The conversation explores how investors can diversify beyond the dominant AI theme, including opportunities in UK equities, infrastructure, energy, water and waste, global insurance, private equity and defence.They also discuss what a more defensive portfolio could look like, from short-duration bonds and gilts to cash, gold and lower-beta equities, and why understanding correlations between different assets becomes particularly important during periods of market stress.Plus, McDermott explains why Chelsea Financial Services reduced its exposure to longer-duration gilts and US Treasuries and why higher yields could now make parts of the gilt market increasingly attractive again.00:00 - How higher bond yields affect equities04:01 - How to diversify beyond the AI trade05:53 - How to build a defensive portfolio08:43 - Can alternatives replace bonds and equities?12:51 - How Chelsea Financial Services changed their play

Forecasting macro factors are much more difficult than they were in the past.That’s the view of Jordan Sriharan who joined this week’s Asset Allocator podcast this week.The senior fund manager for multi asset at Keyridge Asset Management warned that predicting the macro environment has become significantly more difficult due to shifting government policies and increased volatility compared to the post-financial crisis era.Speaking with Aamina Zafar and David Thorpe, the trio examine why inflation and interest rates could remain structurally higher, and what that means for asset allocation, portfolio diversification and risk management.Sriharan explains why shorter-duration corporate bonds are becoming increasingly important in fixed-income portfolios, whether long-duration government bonds can still provide protection during market downturns, and where high-yield bonds and emerging market debt fit into portfolios.Timestamps00:00 - Macro factors more difficult to gauge03:06 - From efficient supply chains to economic resilience10:21 - Does the 60/40 portfolio still work?19:49 - Why emerging market debt looks attractive22:34 - AI, Big Tech and the outlook for US equities29:59 - The investment case for UK equities

Higher bond yields are transforming the investment case for fixed income. But with inflation remaining elevated, interest-rate expectations shifting and markets volatile, where are the best opportunities for investors?In this episode of the Asset Allocator podcast, Amina Zafar and David Thorpe are joined by Fahad Hassan, chief investment officer at Albemarle Street Partners, to discuss how investors should approach bonds, equities and portfolio construction in a higher-for-longer interest-rate environment. They examine why shorter-duration government bonds could offer attractive yields without the volatility of longer-dated debt, whether government bonds can still act as a safe haven, and where corporate bonds and high-yield debt fit into portfolios.The conversation also explores what persistent inflation could mean for interest rates and markets, the risks facing the US and European economies, and why strong corporate earnings have continued to support equities despite market turbulence.Timestamps00:00 - Higher bond yields and new fixed income opportunities05:14 – Is higher-for-longer inflation here to stay?11:02 – Could an inflation shock become a growth shock?15:51 – Are there any safe-haven assets left?

Fears over a lack of de-escalation in Iran and reservations about whether AI companies can continue their trajectory have led to bond market volatility and worryingly persistent inflation. But amid the tumult, stocks and emerging markets have remained surprisingly resilient. Joe Little, chief strategist for HSBC Asset Management, sits down with FT Adviser's Simoney Kyriakou to discuss why stocks and EMs have remained impervious to the volatility in the bond markets. Joe and Simoney discuss what's happening with tech stocks and in the AI space and look at why European stocks have remained on pace with US stocks, despite subdued GDP growth. Is Europe emerging as the 'anti-bubble' market? Meanwhile, a falling dollar and rising EM currencies oxygenates the asset class, easing financial conditions and encouraging investors to allocate to EM.Click here for more investment insights from HSBC Asset Management: Investment Insights | HSBC Asset Managementhttps://www.assetmanagement.hsbc.co.uk/en/intermediary/investment-views/investment-insights?cid=HBEU:NKJ:BRDFT2026:V0:AMG:L15:FT:XTR:0:XAW:16:0526:001:PODFTUKV61