Asset Allocator

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 Management
https://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

The Asset Allocator Podcast discusses the big issues in UK fund selection and how wealth managers are positioning their portfolios. Sign up to the newsletter.
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Are bonds becoming attractive again? Can the AI trade continue to drive equity markets? And with concerns over government debt, inflation and geopolitical risk mounting, where can investors still find a safe haven?

Janet Mui, head of market analysis at RBC Brewin Dolphin, joins the Asset Allocator podcast to discuss the outlook for government bonds, equities, artificial intelligence and gold.

Mui explains why elevated government bond yields could persist, why RBC Brewin Dolphin currently prefers government bonds to corporate credit, and what the return of the “bond vigilantes” could mean for governments running large fiscal deficits.

The discussion also turns to equity markets and the AI investment boom. With technology valuations elevated and huge sums being spent on AI infrastructure, Mui considers whether the AI trade can continue to deliver — and why small-cap stocks, the UK and Europe could offer investors ways to diversify their exposure.

Timestamps
00:00 - Bond Market Dynamics
05:02 - Equity Markets and AI
09:53 - The impact of AI on markets
19:58 - Safe Havens & Hedging

The Asset Allocator Podcast discusses the big issues in UK fund selection and how wealth managers are positioning their portfolios. Sign up to the newsletter.
Hosted on Acast. See acast.com/privacy for more information.

UK equities may look cheap, but are they cheap for a reason?

Paul O’Neill, chief investment officer at Bentley Reid, joins the Asset Allocator podcast to explain why global investors should “stay away” from the UK market for now – despite seeing genuine valuation opportunities for individual investors and fund managers.

With investment flows remaining negative, the UK market shrinking and small and mid-cap equities facing challenges around liquidity and volatility, O’Neill examines what would need to change before the UK becomes a more compelling allocation for global portfolios.

He also discusses how the UK’s declining weight in global equity benchmarks has changed the way asset allocators approach the market, and why even a significant overweight to UK stocks can have a surprisingly small impact on a global portfolio.

Elsewhere, the conversation explores the investment outlook beyond equities, including what higher bond yields mean for portfolio construction and the growing role of alternative investments.

Timestamps
00:00 - Podcast Intro & Market Overview
03:18 - Bonds, Rates & Equity Strategy
06:14 - UK Equity Opportunities
08:23 - Alternative Investments & Bonds

The Asset Allocator Podcast discusses the big issues in UK fund selection and how wealth managers are positioning their portfolios. Sign up to the newsletter.
Hosted on Acast. See acast.com/privacy for more information.

In this episode of Asset Allocator, Patrick O'Donnell, chief investment strategist at Omnis, explains why the ongoing conflict in the Middle East could have long-lasting consequences for global markets, inflation and economic growth.

He discusses the knock-on effects across commodities and supply chains, from energy markets to materials critical for semiconductor production, and explains why rising diesel prices reinforce Omnis' defensive positioning towards cyclical equities.

Patrick also shares where he's finding opportunities in fixed income, why active fund management remains central to Omnis' investment approach, and how policymakers could struggle to balance higher inflation with weaker growth.

Just to note, this is Asset Allocator's last podcast for the summer. We'll return at the beginning of September - see you soon!

Timestamps
00:00 - Intro and macro overview
04:21 - Inflation & Fixed Income Dynamics
07:27 - Market Adjustments & Global Outlook
13:23 - Investment Strategies & Risk

The Asset Allocator Podcast discusses the big issues in UK fund selection and how wealth managers are positioning their portfolios. Sign up to the newsletter.
Hosted on Acast. See acast.com/privacy for more information.

Gold is falling when investors expect it to rise. AI stocks are wobbling. So where should investors look next?

FT Adviser Editor-in-Chief Simoney Kyriakou is joined by Joe Little, Chief Strategist at HSBC Asset Management, to unpack the biggest investment questions facing markets. Watch or listen to previous episodes of Asset Allocator here.

They discuss why gold has become more volatile, whether AI valuations are entering bubble territory, how geopolitics and central banks are influencing markets, and why opportunities may be emerging beyond US technology stocks.

Click here for more investment insights from HSBC Asset Management: Investment Insights | HSBC Asset Management

Timestamps
00:00 - Gold Market Analysis
05:09 - Macroeconomic Outlook & Market Trends
11:00 - Technology, Growth & Valuation Concerns
18:19 - Income Opportunities & Diversification

The Asset Allocator Podcast discusses the big issues in UK fund selection and how wealth managers are positioning their portfolios. Sign up to the newsletter.
Hosted on Acast. See acast.com/privacy for more information.