Please see the below market update from W1M Waverton, received this morning, 19/02/2026:
What happened?
While headlines were dominated by geopolitics, actions in Venezuela along with rhetoric towards Iran and Greenland, global equities had a positive start to the year as US economic data surprised on the upside, supported by resilient corporate earnings. Oil prices rose more than 10% in sterling terms amid rising Middle East tensions, while gold gained over 20% before selling off sharply towards the end of the month. UK government bond yields remain relatively high compared to American or EU peers, reflecting a degree of political uncertainty.
What did we do?
In fixed income, we retained a preference for UK government bonds (gilts) over corporate debt given a view, shared by the Bank of England, that inflation is moderating towards target levels and that means gilts can appreciate in value (assuming political stability). In equities, we hold around 50 stocks based on a 3-5 year thesis for each name. We continue not to hold all the biggest US technology stocks, being conscious of valuations but find good ideas around the world. During the month, we added a position in Grab Holdings which is the leading food delivery and ride hailing app in ASEAN (the “Uber of Southeast Asia”).
In real assets, after a very strong run in gold prices, we took some profits and introduced some derivative based protection strategies in case volatility increased; we remain positive on gold, and other metals such as copper and uranium, but as active investors, we take the opportunity to take profits when we think it is a good time to do so.
What do we expect now?
We remain positively positioned in the equities we select because the big picture, growth and interest rate trajectories, remain supportive. Real assets offer diversification and inflation resilience. Bond markets, expecting modest US and UK interest rate cuts in the next year, have upside and we retain a preference for UK government bonds (gilts) relative to corporate debt. Proprietary protection strategies are a valuable and distinctive component of our portfolios in an uncertain world. After a volatile 2025, given geopolitical events already this year but also the many opportunities which exist, in our view the need is clear for investors to be properly diversified, global and active.
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Andrew Lloyd
19/02/2026