ryan secker

The World in a Week - There is life outside the vacuum of Space(X)

Written by Shane Balkham

Investors may be forgiven for thinking that last week was all about Elon Musk and the Initial Public Offering (IPO) of SpaceX.  On Friday, SpaceX went public with an initial valuation of $1.8 trillion, making it the sixth largest company by market capitalisation, and brought with it an interesting set of problems for index providers.

The role of an index provider is to provide access to the broad market (depending on what the index is trying to replicate), and there are rules on when new companies can be included in that index.  For example, the S&P indices have strict rules on profitability, whereas the Nasdaq has altered its methodology, clearing the way for faster entries to its indices for companies that have gone through an IPO.

What this really shows is that passive investing does have active elements and always has done.  Understanding that is crucial, especially when identifying the sources of risk within an appropriately diversified investment.

President Trump’s announcement of “a very strong memorandum of understanding that is a little conceptual” suggests that any agreement would focus on opening the Strait of Hormuz to commercial traffic, in exchange for an end to the US embargo on Iran and the unfreezing of meaningful amounts of Iranian assets.

The details of this purported agreement have not been released, and it is notable that there have been dozens of instances to date in which predictions of an imminent deal have failed to come to fruition.  While an agreement that reopens the Strait of Hormuz would be market positive, investors have become numb to previous cries of wolf.

If signals of an imminent Iran agreement prove accurate, the May headline US Consumer Price Index (CPI) figure might represent an inflation peak.  The report showed US CPI rose to 4.2% year-on-year to end of May, from April’s figure of 3.8%.  This marks the third consecutive months of rising inflation in the US, coinciding with the war with Iran, as supply shocks are passed quickly through to consumers.

Focus will naturally turn to the reaction from the central banks and if the Strait of Hormuz does open, it does mean the inflation spike from oil should fade, even if it is likely the amount of traffic will be initially subdued.  That does raise questions around the European Central Bank’s decision to raise rates by 0.25% last week, citing concerns around higher and prolonged energy prices.

Both the Federal Reserve and Bank of England have the benefit of meeting this week, and with the announcement of a potential resolution between Iran and the US, could afford policymakers more patience.  However, there are many details to consider for policymakers, and while inflation is certainly key, growth is another significant measure.  UK GDP contracted by -0.1% in April, following growth of +0.3% in March. The services sector was a key driver of this decline, while information and communication sectors remained in expansionary territory.

All performance figures are stated in Sterling terms, unless otherwise specified.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon. 

The information contained in this document is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products. 

The content of this document is for information only. It is advisable that you discuss your personal financial circumstances with a financial adviser before undertaking any investments. 

All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete. Unless otherwise specified all information is produced as of 15^th June 2026

© 2026 YOU Asset Management. All rights reserved.

by ryan secker

The World In A Week - Asia’s AI frenzy

Written by Chris Ayton

Last week was a positive one for global equity markets, with the MSCI All Country World Index of global equity companies up +2.4%. Despite all the political, geopolitical and economic uncertainty, this pushes the gains for that equity index to +8.1% for the year-to-date – a very healthy return if you stayed invested over that turbulent four and a bit month period.

In periods of macroeconomic uncertainty, investors often seek areas of the market where a prevalent theme or structural change should result in more reliable profits, irrespective of the economic backdrop, at least in the near term. Currently, Artificial Intelligence (“AI”) related stocks and sectors around the world are a clear beneficiary of these flows. In the US, the S&P 500 Index was up +2.3% last week, but the tech-heavy NASDAQ-100 Index was up +5.5% and is up +14.5% in the year so far, more than twice the return of the wider US equity market.

Asia is the home to many of the largest AI beneficiaries, and these companies helped push MSCI Emerging Markets Index to a rise of +6.9% last week, taking the index return to +20.9% for the year so far. In Taiwan, Taiwan Semiconductor Manufacturing Company (known as TSMC) is the world's largest semiconductor foundry, manufacturing highly intricate components for its large clients such as Nvidia, Amazon, Microsoft and Google who are investing absolute fortunes in growing their AI capabilities. In Korea, Samsung Electronics and SK Hynix are dominant in manufacturing memory chips that are critical in many areas of technology including AI datacentres and both have seen a record upsurge in demand for their products with seemingly no immediate end in sight.

The resultant explosion in the profits of these Asian tech companies has helped push MSCI Korea Index up nearly +18% in May alone and +87% in 2026 so far. MSCI Taiwan Index is up nearly +9% in May and +48% year-to-date. Although it controls many of the commodities that are needed for the global AI build-out, China currently has a lesser exposure to these large AI component manufacturers. China’s equity index is actually down nearly -4% this year and this has just led to Taiwan overtaking China as being the biggest single market in the MSCI Emerging Market Index, something that was unthinkable a year or so ago. Korea isn’t far behind. It is also notable that, dominated by the above tech behemoths, both Korea and Taiwan have also recently moved above the UK equity market in the list of world’s largest stock exchanges, despite their overall economies being a fraction of the UK’s size.

Demand for exposure to this theme has become quite a frenzy. Goldman Sachs reported last week that an MSCI Korea Exchange Traded Fund (ETF), which provide a cheap and blunt passive exposure to the entire Korean stock market including Samsung Electronics and SK Hynix, has accounted for up to 14% of all global ETF transactions over the last 3 months. A single memory and storage company focused ETF that only launched on 2^nd April reached $1bn in size in just 10 days and is already over $5bn. How long this explosion in demand will continue is the key question being debated by many investors focused upon Asia and Emerging Markets. These are undoubtedly great companies operating in a sector of rapid growth but the key question is when will demand start to normalise or other sources of supply come on board, cooling their rapid growth in profits. With opportunities abound in other segments of Emerging Markets, we are happy to be meaningfully exposed to this theme in the already sizeable Emerging Market component of our portfolios but we are also actively ensuring we have exposure to other attractive structural opportunities in these high growth markets and elsewhere for when the frenzy dies down.

All performance figures are stated in Sterling terms, unless otherwise specified.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon. 

The information contained in this document is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products. 

The content of this document is for information only. It is advisable that you discuss your personal financial circumstances with a financial adviser before undertaking any investments. 

All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete. Unless otherwise specified all information is produced as of 11^th May 2026

© 2026 YOU Asset Management. All rights reserved.

by ryan secker

The World In A Week - Staying the course

Written by Milan Chauhan

Global equity markets had a strong week, with most regions seeing gains. The MSCI All Country World Index rose by +3.3%, helped by solid performance in the US. The S&P 500 increased by +3.7%, while the technology-focused Nasdaq-100 did even better, rising +4.3%. Most of the market’s gains last week came from a strong rally on Tuesday, when the S&P 500 rose by +3.0% and the Nasdaq‑100 increased by +3.5% in a single day.

The UK and Continental European markets also performed well, rising by +4.5% and +4.3% respectively. In the UK, we also saw the FTSE 100 (which includes the UK’s largest companies) continue to outperform the FTSE 250 (which is made up of medium-sized UK companies), with its higher exposure to miners and defence companies being particularly supportive.

As discussed in last week’s piece, periods of volatility like this are a normal part of investing, with short-term setbacks and rebounds being common, and this still remains the case. Last week served as a good reminder of the importance of staying invested. Notably, a large portion of the S&P 500’s weekly return came from a single strong day on Tuesday, highlighting how difficult it is to successfully time the market.

Investor sentiment improved during the week as tensions in the Middle East showed signs of easing. Markets rebounded early in the week as hopes grew that the situation could stabilise. Over the weekend, diplomatic efforts continued, including a joint proposal from China and Pakistan aimed at reducing tensions. The plan focused on a ceasefire, renewed negotiations, and protecting key trade routes and infrastructure helping to reassure investors.

Commodity markets also rallied, led by higher oil prices amid ongoing supply concerns. This supported broader commodity performance, with the Bloomberg Commodity Index rising by +2.4% in Sterling-hedged terms.

In the US, the headline March employment data indicated that the labour market remains resilient however a closer look points to a weaker underlying picture Job growth was stronger than expected and unemployment edged down to 4.3% but this was impacted by a fall in the labour force participation rate and new job creation in the private sector remains weak. Policymakers remain cautious as overall hiring trends are still being closely monitored.

As long‑term investors, portfolios are built with this in mind. They are designed to cope with a wide range of market conditions, including periods when both shares and bonds come under pressure which we have seen in the first quarter of 2026. Staying diversified and focused on long‑term goals remains the most reliable approach.

All performance figures are stated in Sterling terms, unless otherwise specified.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon. 

The information contained in this document is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products. 

The content of this document is for information only. It is advisable that you discuss your personal financial circumstances with a financial adviser before undertaking any investments. 

All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete. Unless otherwise specified all information is produced as of 7^th April 2026

© 2026 YOU Asset Management. All rights reserved.

by ryan secker

The World In A Week: Steady rates, shifting markets

Written by Dominic Williams

Global equity markets finished the week on a mixed footing, with the MSCI All Country World Index falling by -0.5%, despite supportive central bank signals and resilient earnings. Sentiment was further supported by strength in commodity markets, even as political and policy uncertainty lingered in the background.

In the US, the Federal Reserve (Fed) concluded its two-day policy meeting by keeping interest rates on hold, as expected. The overall tone of the committee remained consistent, reinforcing the view that policymakers are in no rush to adjust policy. Chair Jerome Powell struck a notably firm tone when addressing political pressure, underlining the Fed’s independence despite ongoing scrutiny from the White House and reports of a Department of Justice subpoena relating to the Chair, adding to the political scrutiny surrounding the central bank.

Later in the week, attention turned to President Donald Trump’s nomination of Kevin Warsh as his preferred successor to Powell when the current Chair’s term ends in May, subject to Senate approval. Warsh, a former Fed governor, is regarded as more focussed on keeping inflation under control, which has eased some concerns that political pressure could lead to premature interest rate cuts. While his nomination was initially seen as a potential test of the Fed’s independence, market reaction suggested a degree of reassurance that monetary policy would remain focused on inflation control rather than aggressive easing.

The US dollar strengthened against a basket of currencies following the announcement, while gold prices fell sharply from recent highs, reflecting reduced demand for a commodity often used as a hedge against the dollar during periods of global uncertainty.

US equity markets were more volatile, with the S&P 500 briefly surpassing the 7,000 level for the first time before ending the week down -0.8%. The move was underpinned by earnings season, although results from large technology companies highlighted an increasingly nuanced picture.

In particular, earnings revealed a growing divide between firms already benefiting from AI investment and those still facing heavy upfront costs or slowing growth. Meta delivered strong results, with revenues rising sharply year-on-year and shares gaining around +7.5% over the week, as investors welcomed evidence that AI-driven improvements to advertising efficiency are feeding through into near-term profitability despite substantial capital expenditure plans.

In contrast, Microsoft reported strong headline profits but weaker-than-expected cloud growth, with shares falling sharply after the release. The sell-off wiped more than $350bn from the company’s market capitalisation, underlining growing investor concern around the near-term payback from heavy AI-related capital expenditure. Similar concerns were evident in Europe, where SAP shares fell sharply after the company warned that growth in its cloud backlog would slow, reinforcing investor sensitivity to signs that cloud and AI growth may be moderating.

Tesla also drew attention after signalling a strategic pivot away from a pure electric vehicle focus towards greater emphasis on artificial intelligence, robotics and automation. The announcement followed the company’s first annual decline in revenues, highlighting the pressure on the EV business amid slowing demand and intensifying competition from lower-cost Chinese manufacturers.

Outside equities, commodities remained positive, with the Bloomberg Commodity index rising by +1.0% over the week, in GBP hedged terms, supported by strength across energy and continued investor interest in real assets, despite some weakness in gold and silver into the end of the week. With gold and silver prices already elevated, some investors have looked further along the value chain, driving significant gains in mining equities. The surge in metals prices added hundreds of billions of dollars to the market capitalisation of global mining groups, reflecting renewed interest in real assets as both an inflation hedge and a source of diversification.

Emerging markets performed relatively well, with the MSCI Emerging Markets Index rising by +0.6% over the week, although performance masked significant regional divergence. Indonesia came under pressure after warnings from MSCI, a major index provider, raised the prospect of a potential reclassification within global equity benchmarks. Such a move could lead to forced selling by passive investors, highlighting how technical factors can have a meaningful impact on local markets.

Overall, the week underscored the resilience of global markets in the face of uncertainty, supported by steady monetary policy and selective earnings strength. At the same time, divergences across sectors and asset classes highlight the importance of maintaining a diversified and disciplined investment approach over economic cycles.

All performance figures are stated in Sterling terms, unless otherwise specified.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon. 

The information contained in this document is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products. 

The content of this document is for information only. It is advisable that you discuss your personal financial circumstances with a financial adviser before undertaking any investments. 

All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete. Unless otherwise specified all information is produced as of 2^nd February 2026.

© 2026 YOU Asset Management. All rights reserved.

by ryan secker

The World In A Week - New year, new gains despite geopolitical headlines

Written by Ashwin Gurung

The first week of 2026 has already brought major geopolitical headlines, including U.S. forces capturing Venezuelan President Nicolás Maduro and his wife, Cilia Flores, on drug trafficking charges, and President Trump asserting U.S. influence over Venezuela’s vast oil reserves.

Venezuela is often reported to hold about a fifth of the world’s known oil reserves, one of the largest anywhere. However, these estimates are widely questioned, and the actual economically recoverable oil is likely much lower. Nonetheless, the U.S. has announced plans to help rebuild Venezuela’s oil sector, given that the country currently produces less than 1 million barrels of oil per day, which is less than 1% of the total global supply due to various challenges. However, meaningful increases in production will require substantial investment, time, and clear policy support. With oil prices near multiyear lows and supply already exceeding demand, any additional output could add further pressure to prices. Additionally, long-term demand for traditional oil may be limited, as the growing adoption of electric vehicles reduces reliance on conventional fuels. [AG1.1]

Despite significant geopolitical headlines, the first full trading week of 2026 saw a rally in global equities, bonds, as well as commodities. Global equity markets, as measured by the MSCI All Country World Index, rose +2.1%, global bonds, as measured by the Bloomberg Global Aggregate Index, returned +0.4% in GBP‑hedged terms, and similarly, commodities, as measured by the BCOM Index, returned +2.5% in GBP‑hedged terms. [AG2.1]In the US, the S&P 500 climbed +2.2%, and smaller, domestically focused companies, as measured by the Russell 2000 Index, surged +5.3%.
The US non-farm payrolls, which tracks the number of jobs added or lost each month across most sectors of the economy in the U.S. (excluding farm workers, government employees, and a few other categories)[AG3.1], report surprised on the downside, with employers adding just 50,000 jobs in December, though the unemployment rate fell to 4.4% from a revised 4.5% the prior month. President Trump’s proposal to increase US military spending by more than 50% to $1.5 trillion a year also supported defence stocks.

In Europe, inflation slowed to 2% in December, in line with the European Central Bank’s target and market expectations, while the economy showed signs of picking up at the end of 2025. Industrial output in Germany, France, and Spain surpassed forecasts in November, helping the MSCI Europe Ex-UK index gain +2.0% over the week. Meanwhile, in the UK, the housing market continued to soften, with mortgage approvals for home purchases dropping to 64,530 in November from 65,010 in October, according to Bank of England data. Nonetheless, the broader UK market performed well, with the FTSE All Share rising +1.9%.

Elsewhere, Japanese equities performed strongly, with the MSCI Japan rising +2.9% over the week, despite ongoing geopolitical and trade tensions with China. However, concerns over Japan’s already stretched public finances have pushed long-term borrowing costs higher and continued to weigh on the yen. In contrast, Chinese equities saw a modest weekly gain of +0.9%.
While markets will continue to face geopolitical uncertainty, we remain confident that the best approach for achieving sustainable, long-term, risk-adjusted investment returns is through a multi-asset globally diversified portfolio.

All performance figures are stated in Sterling terms, unless otherwise specified.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

The information contained in this document is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.

The content of this document is for information only. It is advisable that you discuss your personal financial circumstances with a financial adviser before undertaking any investments.

All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete. Unless otherwise specified all information is produced as of 12^th January 2026.

© 2026 YOU Asset Management. All rights reserved.

by ryan secker

The World In A Week - The artificial intelligence race across the world

Written by Millan Chauhan

Last week, the Federal Reserve implemented a 0.25% interest rate cut, marking its first move in nine months. This decision was a response to mounting evidence of a slowing labour market in the US. Chair Jerome Powell acknowledged that the balance of risks has shifted toward employment concerns and away from inflation, which has remained persistently above the Federal Reserve’s 2.0% target. The central bank also signalled expectations for two additional 0.25% rate cuts before the end of the year. This boosted equity markets, with the S&P 500 up +1.8% last week. Global equities, as measured by the MSCI All Country World Index, also rallied +1.6% for the week, with the US representing roughly 65% of that index, being a key driver.

The resumption of rate cuts has particularly benefited US small-cap companies, which have outperformed their large-cap counterparts in recent months. Anticipation of further interest rate cuts into 2025 and 2026 has propelled the small and mid-cap biased Russell 2000 index to a +14.7% gain for the quarter so far, including a +2.8% return last week. As a reminder, the YOU Multi-Asset Blends Fund and Active Model Portfolios have an exposure to an actively managed Fund managed by Neuberger Berman, which has effectively captured this small-cap outperformance.

In Asia, China’s internet regulator announced an immediate ban on major technology firms purchasing US chip maker Nvidia’s AI chips, reflecting ongoing US-China tensions. China continues to reduce reliance on Nvidia and has accelerated its domestic chip development. There is a growing consensus that Chinese manufacturers can now match the performance of Nvidia’s China-specific RTX Pro 6000D chip. This development marks another chapter in the ongoing US-China rivalry, with the current focus squarely on AI leadership. Chinese equities extended their strong recent performance, with the MSCI China index up +1.5% last week, contributing to a +1.8% gain for the MSCI Emerging Markets index.

As the race for AI dominance intensifies, Nvidia announced a $5 billion stake in Intel, with the intent to diversify its chips production reliance away from Taiwan Semiconductor Manufacturing Company (TSMC). Intel, which has faced competitive challenges, is also set to receive a 10% equity investment from the US federal government to help reinforce their leadership in semiconductors and technology.

Diversification remains a cornerstone of our investment philosophy. We are committed to maintaining broad exposure across and within asset classes, ensuring portfolios are not overly concentrated in any single theme or region. While technology has been a prominent driver of recent performance, our portfolios are constructed to benefit from a range of investment styles and factors, supporting robust overall returns.

All performance figures are stated in Sterling terms, unless otherwise specified.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

The information contained in this document is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.

The content of this document is for information only. It is advisable that you discuss your personal financial circumstances with a financial adviser before undertaking any investments.

All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete. Unless otherwise specified all information is produced as of 22nd September 2025.

© 2025 YOU Asset Management. All rights reserved.

by ryan secker

The World In A Week - All models are wrong, but some are useful

by ryan secker